Kenai -- March 25, 2003 -- The Alaska Voters Organization Board of Directors has issued a formal resolution to the 23^rd Alaska State Legislature in opposition to the construction of a correctional institution, financed with public funds, to be operated by a private corporation.

Since the initial introduction of HB 428 on January 17, 1996 the time and money expended by the legislature and various municipal jurisdictions promoting and pursuing a private prison financed with public funds has had no benefit for the state or for the taxpayers who have paid these costs.

An ongoing series of special interest legislation has been introduced for the benefit of a Texas based for-profit corporation at great expense to Alaskan taxpayers. After being voted down in Anchorage, Delta Junction, Kenai, and Wrangell, Cornell Corrections Corporation of Houston Texas have now set their sights on the Second Class City of Whittier.

With a population of less than 200 people, Whittier will never be able to pay for a project of this size without guaranteed state revenue. By using a questionable municipal financing maneuver, the legislature is attempting to circumvent Article IX, Section 8 of the Alaska Constitution which says: "No state debt shall be contracted unless authorized by law for capital improvements... and ratified by a majority of the qualified voters of the State who vote on this question". This particular legislation leaves the State of Alaska bearing the burden and ultimate responsibility of all costs for this proposed project. Over the 25 year life of this prison, the State of Alaska will pay out more than one billion dollars with all profits going to a private corporation. The City of Whittier and Cornell Industries will have no financial risk.

Issue contact James Price said, "The legislature has proposed building this massive project with public money, but is not requiring competitive bids for the construction costs. This questionable process rewards private contractors who win contracts through their lobbying efforts rather than through an open competitive bidding process".

"The State of Alaska has a serious budget deficit, and must consider ALL possible options, including the current arrangement with the privately owned and operated facility in Arizona. Public safety and sound correctional practices are in direct conflict with a private operator’s goal to make a profit. Our legislature must determine the highest and best use of limited public resources to determine the best alternative." said Price.

"It should be noted that private for-profit prison operators benefit from new laws requiring incarceration, or longer sentences for existing crimes. Because they are paid for each day a prisoner remains in jail, there is no real incentive for private operators to give credit for good behavior or to rehabilitate prisoners. These factors contribute to more people being in prison, for longer periods of time, at an ever increasing cost to the taxpayers. With no real incentive to reduce recidivism or to promote options other than incarceration, the only winner in this scenario is the private prison operator", Price said.

A dedicated web page <http://www.akvoters.org/Prison.htm> has been established with complete details and background information.  This page will permanently record all actions taken, and provide an easy to use source for the public to access current information.  There is also a list of email addresses, and phone numbers for all legislators hearing this bill. The web page can be accessed from the "Hot Button Issues" section of the Alaska Voters Organization home page <http://www.akvoters.org>. "We recommend everyone take a few minutes to become familiar with this important issue, then contact the legislature and media with an opinion." Price said.

The Alaska Voters Organization is a nonprofit, nonpartisan, tax-exempt research and educational foundation formed in 2002. The stated mission of this 501 (c) (3) group is to keep Alaskan voters aware of legislative issues such as questionable state spending, unbalanced budgets, new taxes, permanent fund changes, or legislation that affects the rights of Alaskan citizens.

This resolution has been submitted as written testimony before the various House and Senate Committees hearing HB 55 and SB 99, with copies sent to all State Legislators, the Governor and media statewide.  A copy is attached for your file.

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WHEREAS, since the initial introduction of HB 428 on January 17, 1996 the time and money expended by the Legislature and various municipal jurisdictions promoting and pursuing a private prison financed with public funds has had no benefit for the state or for the taxpayers who have paid these costs; and

WHEREAS, this type of legislation was rejected by the voters in Anchorage, Delta Junction, Kenai, and Wrangell; and

WHEREAS, this legislation was introduced for the benefit of a Texas based for-profit corporation at great expense to Alaskan taxpayers, and to the detriment of our statewide correctional goals; and

WHEREAS, the Second Class City of Whittier, with a population of less than 200 souls, located in the unorganized borough, will never be able to pay for a project of this size without guaranteed state revenue, resulting in the State of Alaska bearing the burden and ultimate responsibility for all costs; and

WHEREAS, Article IX, Section 8 of the Alaska Constitution states: "No state debt shall be contracted unless authorized by law for capital improvements... and ratified by a majority of the qualified voters of the State who vote on this question"; and

WHEREAS, a private prison project built with public money represents an enormous transfer of state funds, more than one billion dollars over twenty five years, with all profits going to a private corporation with minimal investment relative to their large potential gain; and

WHEREAS, it is not in the best interest of Alaska to assume liability for negligent actions taken by a third-party contractor whose primary goals are profit-driven; and

WHEREAS, the privatization of correctional institutions has not been effective to insure public safety or to rehabilitate incarcerated offenders; and

WHEREAS, it is the highest and best use of limited public resources to build a correctional institution with competitive bids; and

WHEREAS, the public safety interests of our state dictate that each correctional institution be closely monitored and run by trained professionals answerable directly and exclusively to public officials, without regard for profit; and

WHEREAS, the State of Alaska has a serious budget deficit, ALL possible options must be considered, including the current arrangement with the privately owned and operated facility in Arizona, to determine the most fiscally responsible plan;

NOW, THEREFORE, BE IT RESOLVED by the Alaska Voters Organization, Board of Directors, that the construction of any state correctional institution should be by competitive bid only; and be it

FURTHER RESOLVED that all bonded construction cost for any state correctional institution be approved by Alaska voters as directed in Article IX, Section 8 of the Alaska Constitution; and be it

FURTHER RESOLVED that the operation of any publicly funded correctional institution in Alaska by private corporations be prohibited;

 

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