There has been much discussion on whether jails or prisons should be public or privately operated. The concept is simple ~ many say that if public prisons were to be turned over to the private prison industry they would say operating money. Others have said that giving the public prison industry their jails and prisons saves no money for the state or county but does show a profit for the private prison entrepreneur-minded or their contractual partners.
For example there is much profit to be made from the rental of the prison bed, the food served, the commissary goods sold at that prison, the pay phone system, the medical co-pays of their medical services etc that helps infuse funds into their respective budgets. Whether this is right or wrong is up to the individual morality of the person but is the most interesting ingredient for the growth of the private prison world. Charging a fee to be incarcerated is regulated by state legislators who either agree or disagree via the passing of bills that turn into laws permitting such activities. Making profit from inmates is hardly a new concept since slave labor was used in the past for those who had influence with the corrections commission, the wardens or the contacts set up for such business.
You can save costs on supplies by using different companies that make soap, mattresses, towels, sheets, etc. Food costs can be reduced if your state prisons will allow you to purchase their premixed foods (frozen) and then just reheating them at your facility.
Commissary goods are charged at more than retail cost; phone rates are higher than competitive public rates and there are many ways to charge an inmate for these services more than once if you do it smart. Contracting phone services and vending machines creates revenues of unbelievable proportions. Involved are some simple solutions to make money through rebates or revenue sharing benefiting the prison to some degree but essentially set up to benefit a third party who ‘piggyback” off these contracts and provide products or services creating a lesser cost for them through greater volume buying and lower prices that will be doubled or tripled at retail cost or higher.
On top of this pyramid structure of sales are opportunities for all involved to participate in expanding their ability to make money and expand to offer services in cash bail bonds, fines, court costs, child support payments etc offering the agencies with a flexible yet controlled method to make money and offer essential services to the inmates that have to meet court ordered sanctions or conditions either in pre-trial status or post trial status while in jail and then onto the prison where they are sent. In other words, the payment of such services offsets some of the costs of keeping them inside the facility offering quicker and an increasing ability to secure release, comply with court orders and reduce their stay while in the jail with the use of a credit or debit card.
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