Governor rejecting CoreCivic a mistake

As we move further away from the governor’s rejection of CoreCivic’s offer, I believe it is imperative that Montanans understand the true nature of the deal our governor inexplicably refused to take with the private U.S. prison operating company.

CoreCivic’s final offer was for a two-year contract extension at a daily rate of $75.48 per inmate. Given that the state can house up to 600 prisoners in Shelby, the maximum total value of the contract extension would have been approximately $33 million.

In exchange for this new daily rate, CoreCivic agreed to surrender $35.7 million of the previously collected use fees, provide a 24/7 infirmary, provide new programming designed to address recidivism, provide quarterly human rights training for their staff, and to accept an accelerated labor union formation process known as card check neutrality.

The new programming requirements included cognitive behavioral therapy, Native American programming, sex offender treatment, methamphetamine addiction treatment, parenting skills classes, and expanded vocational rehabilitation opportunities. CoreCivic also agreed to achieve a GED attainment rate on par with our public prison.

Given that CoreCivic was willing to surrender $35.7 million at signing to receive a maximum of $33 million in future revenue, why did Governor Bullock choose to leave many essential services unfunded by walking away from the deal? I don’t know but I can examine the truthfulness of the public statement he made at the time his team broke off negotiations.

On April 4, in response to a question of why the offer had been rejected, the governor said, “Where it leaves us is, we sure as hell shouldn’t be entering into a contract that increases 15 percent for the private-prison providers at the same time that we’re cutting services all across the state.”

How CoreCivic’s request for a $3.48 increase to the daily rate became a 15 percent deal breaker is a mathematical mystery. Considering that the existing contract pays $72.00 per inmate day, the actual increase was on the order of 4.8 percent. And much, if not all, of this increase was due to the state’s request for additional services.

Next, the governor said that he is against raising prison fees while essential services are being cut. If true, this would be a very noble position to take. Unfortunately, it is patently false. Jan. 25, our governor signed a contract amendment raising the daily rate at the Dawson County Correctional Facility by almost $3 per inmate day. The new daily rate at Dawson is now higher, at $79.21 per inmate day, than CoreCivic’s offer and Dawson does not provide programming at their facility.

From enigmatic math to a false attempt at nobility, the Governor’s stubbornness on this issue is as inconceivable as it is indefensible. Montanans have a right to hear why the Governor won’t mitigate crippling budget cuts with the $20.7 million available from a contract extension. At present, I can only surmise that his desire for new taxes surpasses his need to protect Montanans - and that is a scheme that is bad for all of us.

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Rep. Rob Cook, R-Shelby

Candidate for PSC District #1