Private Prison Payments Increased 3 Percent

State lawmakers have approved of a compromise to increase the per diem rate Colorado pays its largest private prison company, Corrections Corporation of America, after a battle between the state and the company this year.

Rep. Al White, R-Hayden, said the Joint Budget Committee agreed to boost the amount of money the state pays the firm per prisoner per day from $52.69 to $54.27 — a 3 percent increase — as a gesture of “good faith” between the state and the private company.

“If we don’t have all the money they want, let’s give them a good-faith offer, and have some negotiation (over the Huerfano County) facility,” White said.

During negotiations this year between Corrections Corporation of America and the state, the company threatened to stop holding Colorado prisoners in the 752-bed prison to stay profitable.

According to committee reports, the company requested a 4.25 percent funding increase, but staff had recommended a 1.5 percent increase — the same rate increase lawmakers planned to give to all other private companies the state has contracts with.

Mike Feeley, a lobbyist for Corrections Corporation of America, could not be reached for comment Tuesday.

Grand Junction Sentinel