Corrections Corp. Wins as Brown Buys California Prison Fix
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Corrections Corp. of America, the largest U.S. prison company, and Geo Group Inc. stand to gain in California Governor Jerry Brown’s plan to rent thousands of their cells as part of a $1 billion effort to meet a federal court deadline to reduce prison overcrowding.
Brown seeks to spend $315 million in the year that ends June 30 and an estimated $415 million annually for two more years to remove 12,500 inmates from state penitentiaries. The plan calls for leasing a Corrections Corp. prison in the Mojave Desert, shipping more inmates to private lockups out of state, and renting beds at public and private jails in California.