Prison Privatization

Update from the Arizona Police Association (APA) lobbyist:

There is no talk of privatization at this time.  Because of the law that was passed last session RFIs (Request for Information) were distributed but not RFPs (Request for Purchase).  Bids can only be accepted when an RFP is issued.  Even if an RFP is issued, this does not necessarily mean privatization will occur.  It could simply be a way for the OSPB and JLBC to evaluate dollars that could come into the general fund under the selling of prison facilities or property.  Only the legislature can order privatization to occur and that has not been done.

Our sources tell us that the legislators are looking to sell state facilities.  When and if such a sale occurs, the state would immediately enter into a lease/purchase arrangement with the buyer.  EVERY legislator I have spoken with has stated if this occurs state prison personnel will remain state employees and will continue their work at the prison facilities under the direction of their current managers. 

The sale/lease purchase proposal is just a way for the state to get cash quickly and remain financially solvent.  Think of it as a loan from a bank. The facility would be the collateral the state is offering up for the money provided by the buyer.  In the subsequent lease/purchase arrangement, the state would pay the buyer a dedicated payment and an interest fee on the money provided to the state.  The buyer in turns holds the land and the buildings and if the state defaults they could sell the property to whomever wishes to purchase it.  Thus the collateral guarantee.

Our legislators understand that negative liability and political issues related to total prison privatization in the state and again each one that I have spoken with states they will not vote for such a measure.

Article written by/or information provided by ACA