(crossposted from Ohio Budget Watch)

You may remember that the Kasich budget proposal featured the potential privatization of five state prisons. The administration estimated that the sale of prisons to private operators would result in $200 million for the state, with $50 million of that going to fill the general fund budget hole and the rest staying with the Department of Correction, whose budget was otherwise hit pretty hard.

Today we learned that the administration has reviewed the bids and found only one proposal worth acting upon: they will sell the Lake Erie Correctional Institution to Corrections Corporation of America (Current DRC Director Gary Mohr’s former employer) for $72.7 million. The other prisons will not be sold, but some operations will be privatized or merged with other facilities for an expected $13 million in annual savings.

So, doing the math, it looks like the state will net $86 million in proceeds from the plan, either in sale proceeds or savings, to help plug into the budget. But if they’d counted on $200 million, they appear to have come up $114 million short. When combined with tax revenue shortfalls reported for July, we’re starting to compound what appears to be a growing problem with the brand new state budget, possibly taking us a step closer to what the Governor predicted: a new budget featuring even more cuts.

Evangelize!
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  • http://pulse.yahoo.com/_CW2J65B3NDO5CJIMRP4FYJMPSU Adrienne

    R’s can’t do math.

  • http://pulse.yahoo.com/_CW2J65B3NDO5CJIMRP4FYJMPSU Adrienne

    R’s can’t do math.

  • WestParkGuy

    Maybe repealing the Estate Tax and 4% tax cut was a bit premature.

    I don’t know about the rest of Ohio but our property taxes are going up thanks to Kasich.

    Don’t forget, this deal still might not go through. Judge still has to decided if the VOTERS can kill this deal. Budget might have an $187 million hole in it.

  • Anonymous

    Either way, Kasich figured he couldn’t lose. He’ll get to privatize and cut more government. It’s a win-win for him. The only thing that could have been better was for him to find another way to cut corporate taxes again.

  • http://twitter.com/dcviper985 David Corey

    Check the headline, guys. :P

  • http://pulse.yahoo.com/_CW2J65B3NDO5CJIMRP4FYJMPSU Adrienne

    Privatizing = robbery
    Cuts = robbery
    R  = robbers
     
    Don’t understand why we are paying their salary when they don’t believe in government for us but just for the rotten rich.

    They do this on purpose so that they can defund government so that it is easier for the corporate takeover of us which has been happening for the past 30 years.

  • Anonymous

    The private prison operators have quite a lot of problems. I hope that we can raise awareness of how unsafe it will be for citizens for these transactions to go forward.  How will the public find out about the unqualified drug and alcohol counselors, beatings, escaped prisoners, inadequate staffing, etc., that have been found at prisons run by these private companies?  The following is from what I found out this morning on all three of the companies listed as potential buyers (CCA, GEO, and MTC):  (posted at http://ohio15th.blogspot.com)

    An investigative report from a TV station in Idaho, KBOI2 which detailed the beatings, unqualified counselors, improper medical care, etc.

     
    There is another article involving escaped prisoners from private prisons.  The YumaSun has some details about GEO Group, as well as Management and Training Corp.

    If you’d like to view other reports, check the California Correctional Peace Officers Association website  on  the GEO Group, CCA, and MTC.

    Kasich wanted a higher amount for the sale of the prisons, but his over the top estimate is just another prime example that everything he says/does is overblown, and unrealistic.  He just isn’t living in the real world like the rest of us.

  • Anonymous

    Maybe fix the headline typo. Kasich would never stop at a $114 budget hole.  He thinks big!

  • Anonymous

    My property taxes have gone up so much in the last decade, they’ve long since swallowed up the Taft tax cuts. And we’re looking at yet ANOTHER school levy that will disproportionately punish less well-heeled citizens in my community because of the 100 percent, seven-year abatements on opulent townhomes I could never afford.  I get that they need it since Kasich is stealing local school funding, but how does this help those of us who aren’t big Republican donors – just average citizens?

  • Fotogirlcb2002

    Maybe he can give some of his salary back — $ 123,153.
    isnt it interesting his old company got that ?
    the way I have this figured — our tax money built this prison and now its sold  shouldnt we get a rebate check ? 

  • Fotogirlcb2002

    my fellow Ohioans —
    I think its time for us to band together and ask our legislators to bring legislation to make it a law that if any state assets are intended to be sold that it goes up for a statewide vote
    they need to list the cost of selling and the buyer and where they are from…..
    its the only fair way
    our tax money helped to build everything the governor wants sold

  • Fotogirlcb2002

    my fellow Ohioans —
    I think its time for us to band together and ask our legislators to bring legislation to make it a law that if any state assets are intended to be sold that it goes up for a statewide vote
    they need to list the cost of selling and the buyer and where they are from…..
    its the only fair way
    our tax money helped to build everything the governor wants sold

  • http://profiles.yahoo.com/u/GK4FEGNHSJVH5DA5TFOGEBUXQQ Andy

    Take it easy everyone…all they needed was one correctional institute run by their friends for this deal. The idea is to create a nice place that Kasich’s cabinet can go when they all get sentenced. 

  • Anonymous

    oh great, get a bunch of teachers reading the site, and suddenly you can’t get away with anything!  Thanks for the catch, everyone. 

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