It used to be that worries about the government rounding up people and putting them into "interment camps" was the very height of tin-foil hat country. Well get out the reynolds wrap...
Immigration Enforcement Benefits Prison Firms
July 19, 2006
NY Times
As the Bush administration gets tougher on illegal immigration and increases its spending on enforcement, some of the biggest beneficiaries may be the companies that have been building and running private prisons around the country.
By the fall of 2007, the administration expects that about 27,500 immigrants will be in detention each night, an increase of 6,700 over the current number in custody. At the average cost these days of $95 a night, that adds up to an estimated total annual cost of nearly $1 billion.
The Corrections Corporation of America and the Geo Group (formerly the Wackenhut Corrections Corporation) -- the two biggest prison operators -- now house a total of fewer than 20 percent of the immigrants in detention. But along with several smaller companies, they are jockeying for a bigger piece of the growing business.
Corrections Corp. and Geo are already running 8 of the 16 federal detention centers.
With all the federal centers now filled and the federal government not planning to build more, most of the new money is expected to go to private companies or to county governments. Even some of the money paid to counties, which currently hold 57 percent of the immigrants in detention, will end up in the pockets of the private companies, since they manage a number of the county jails.
"Private companies are positioning themselves as suppliers, and are positioned to take the majority of new beds available," said Anton High, an analyst with Jefferies & Company, the brokerage firm. He has recommended that his clients buy Corrections stock.
Louise Gilchrist, vice president for marketing and communication at Corrections Corp., said her company would have no trouble meeting the federal government's needs. "We believe as their demand increases, they will need to rely on providers who have bed space available," she said. "The company feels it is well positioned."
Wall Street has taken notice of the potential growth in the industry. The stock of Corrections Corp. has climbed to $53.77 from $42.50, an increase of about 27 percent, since February when President Bush proposed adding to spending on immigrant detention.
Geo's stock rose about 68 percent in the period, to $39.24 a share from $23.36.
Elsewhere:
Immigrant sweep snags 58 at Fort Bragg
FORT BRAGG, N.C. - Federal agents conducting a sweep aimed at illegal immigrants detained 58 civilian workers Tuesday as they tried to enter Fort Bragg with suspected false or fraudulently obtained identification, officials said.
Almost all of them were construction workers, officials said.
U.S. Immigration and Customs Enforcement agents, U.S. marshals and FBI agents worked with the military on the sweep...
"Today's operation was part of our ongoing force protection measures," said post spokesman Tom McCollum. "There were no incidents or accidents."
It's a growth industry.