In 1983 the nation’s largest private prison corporation the Corrections Corporation of America was founded. The Corrections Corporation of America (CCA) controls more than 47% of all private prison and jail beds nationwide and produces a 13% to 15% return annually on investment. This company is the nation's largest owner and operator of privatized correctional and detention facilities and one of the largest prison operators in the United States, behind only the federal government and three states. They specialize in owning, operating and managing prisons and other correctional facilities and providing inmate residential and prisoner transportation services for governmental agencies.
The Corrections Corporation of America began capitalizing on the expansion of state prison system in the early 80s and early 90s at the height of the 'war on drugs’ campaign, contracting with state governments to build or manage new prisons to house an influx of drug offenders. Currently the Corrections Corporation of America owns and operates more than 65 facilities including 47 company-owned facilities, with a design capacity of more than 90,000 beds in 19 states and the District of Columbia.
Many would also ask how they did this. The Corrections Corporation of America did this by sending letters to 48 states offering to buy up their prisons as a remedy for challenging corrections budgets. In exchange, the company asked for and received a 20-year management contract, plus an assurance that the prison would remain at least 90 percent full from participating states. The result being the Corrections Corporation becoming a fast growing business, with revenues expanding more than five times since the mid 1990s. How are states assuring the Corrections Corporation of America that their prison facilities remain at 90% capacity? If the intent of our criminal justice system is to reduce crime and reduce recidivism, I believe that assurance of 90%