New Study Proves Economic, Fiscal Benefits of Correctional Partnerships

CCA brings thousands of jobs, millions in wages and tax revenues to Arizona

A new study shows that CCA introduces significant financial benefits to communities where it owns and operates prisons, detention centers and jails, according to a recent analysis of one such community in Arizona.

Based on findings from research conducted by Elliott D. Pollack & Company, a Scottsdale, Ariz.-based real estate and economic forecasting and analysis firm, “CCA Communities” in Arizona are thriving. The group’s report details the economic and fiscal advantages brought through new jobs, tax revenues, business growth and overall local sustainability that make public-private partnerships in corrections so beneficial.

“Fiscally, through new and expanded resources for the public coffers of states, cities and counties, CCA helps government make the most of taxpayers’ hard-earned dollars,” says Tony Grande, CCA executive vice president and chief development officer. “Economically, through new jobs that increase local spending, CCA is providing direct financial lifelines to local residents.”

The study evaluated the combined financial benefits of six CCA correctional facilities in Pinal County, Ariz. in the communities of Eloy – home to Eloy Detention Center, La Palma Correctional Center, Red Rock Correctional Center and Saguaro Correctional Center – and Florence, where Central Arizona Detention Center and Florence Correctional Center are located.

CCA established a presence in Arizona more than 15 years ago and is now the largest non-governmental employer in Pinal County, where nearly five percent of employment is linked to the company. Today, according to the research, the company has created 2,733 direct jobs and helped spur 1,700 indirect or spin-off jobs, paying more than $205 million in wages annually. This led to more than $435 million in economic activity in 2009 and a total of more than $26 million in tax revenue collected.

CCA’s Total Economic and Fiscal Impact in Arizona

• Direct Jobs - 2,733
• Indirect, or Spin-Off, Jobs - 1,700
  
• Economic Activity, or Spending - $435 million
  
• Tax Revenue - $26.2 million
  
• Salaries and Wages - $205.4 million
  

The report also provides a forecast of how continued expansion of CCA in Arizona would be economically meaningful to residents and would yield significant fiscal growth for state, county and local governments. At an estimated cost of $200 million – which would be financed by CCA – the construction of a single 3,000-bed correctional facility would generate over 2,500 new jobs paying more than $116 million in salaries and wages that would result in more than $300 million in economic activity.

The Impact of Constructing a New 3,000-bed CCA Facility

• Direct and Indirect, or Spin-Off, Jobs - 2,528
  
• Salaries and Wages - $116.4 million
  
• Economic Activity, or Spending - $300.1 million
  

Once completed, a new CCA correctional facility would result in an estimated 450 direct jobs and 187 indirect, or spin-off, jobs, leading to more than $26 million in wages and approximately $55 million in spending each year. An additional correctional facility would also generate nearly $17 million in revenues for state, county and local governments for construction-related activities and more than $4.8 million annually from operations.

“That is the kind of important corporate citizen CCA is, and this new research shows what a meaningful impact a CCA partnership prison brings to the community,” says Brad Regens, CCA vice president, State Partnerships. “This latest set of figures shows that when CCA partners with a community, the economic infusion trickles down just as much as it percolates up.”

The findings indicate an effect that spans statewide. “Employees span the entire state, with a significant number residing in neighboring Maricopa, Pima and Gila counties. Thus, the economic impact of operations is expressed as a statewide benefit,” the report said.

Source, Spring 2010