European Stars and Stripes (Newspaper) - April 04, 1992, Darmstadt, Hesse                                Tough times for government Means Good times for private prison firms by Phil West a business writer in Nashville tenn., As elsewhere prisons have Long been a Drain on state budgets. But in the hands of private companies some prisons Are enjoying their most profitable years Ever. Fourteen companies Are looking for and often finding profits in prisons a much to the Delight of overwrought correction departments in 25 states. Quot government agencies Alt across the ration Are tapped out financially and Are looking for ways to save Quot said Charles w. Thomas criminology professor and director of the private corrections project at the University of Florida. Quot if times Are tight for local state or Federal governments the pressure is on government agencies to do More for less. In that time the Cost savings from privatization becomes most attractive for government Quot he said. The number of prisoners in privately run correction facilities now about 15,000, is expected to jump 40 percent by year s end. Quot that s if no additional contracts Are awarded. Several Are pending Quot Thomas said. The largest of the private prison companies is corrections corp. Of America based in Nashville it expects to generate $100 million in revenues this year. Quot government is trying to provide More services with less Money. In other words pressure is growing to become More Cost effective a How to get 11 cents of service out of 10 cents of Revenue Quot said Cha s president and chief executive doctor  action line Quot an increasing number of political leaders Are asking themselves can we become More Cost effective in correction Quot Crants said. The answer May be yes. Independent evaluations in six states found private companies save 5 percent to 10 percent Over the Cost of government operation of prisons and jails. Those studies also found the private companies can build prisons for 10 percent to 15 percent less Money than governments can. One study of four 500-bed Texas prisons two operated by Cha and two by Wackenhut corrections corp. Of Miami showed the prisons were being operated at a 15 percent savings to taxpayers professor Ira Robbins of american University College of Law disagrees with these findings. Quot when you distil All of it the private companies say they can do three things. They say they can operate prisons and jails quicker cheaper and better Quot he said. Quot i say they re wrong on two. They re wrong on better and wrong on cheaper. Doctor Crants president of corrections corp. Of America stands in front of a Nashville tenn., ail his firm manages. They re right on quicker because they done to have to Deal with civil service and red  Robbins said there Are hidden costs associated with prison operation that the private companies Don t have to Deal with. He also believes the private companies take Short cuts to arrive at their lower operating costs such As leaving some jobs unfilled. Quot my objection is that the criminal Justice system should t be for profit. There s too Many incentives to Cut Corners to come up with profit Quot Robbins said a can a Crants bristled at the suggestion. Quot that criticism of private Enterprise is always thrown up in our face Quot he said. Quot in a prison the posts cannot go unmanned. There a no such thing As putting the keys Down at the end of the Day and going Home. You have to hand the keys to the next person. If you be got the Day shift and evening shift does t arrive you have to stay at that Post until night shift comes along a Crants said. In fact Cha usually hires More guards and staff when the company takes Over a prison from a government Agency. Crants said it is cheaper to eliminate overtime by hiring additional guards. Proper staffing Levels also reduce employee stress he said. Quot overworked people in High stress jobs quit. Anybody who tells you private Enterprise cuts Back on workers to save Money has no sense of the economics of running a jail Quot Crants said. Opponents also accuse prison companies of providing inadequate food. A when you done to give inmates a sound nutritious and filling meat you generate ill will a Crants said. Quot it s stupid to assert that someone would Cut Back on the Quality of  objection is that the criminal Justice system should t be for profit. There a too Many incentives to Cut Corners to come up with profit. Prof. Ira Robbins american University College of la medicare claims mean loss of champs it a recently i began to receive a new leave and earnings statement. In it the amount previously withheld from my pay had been divided into two categories fica a social Security and Ficay medicare. Although the total amount withheld has not changed i a am not sure what the Long term implications Are concerning this transaction i am under the impression that if i retire from the army my medical needs will be taken care of at either a department of defense or a veterans affairs Hospital or through champs civilian health and medical program for the uniformed services. Would you please have someone explain Why i am contributing to medicare and what this contribution Means or Wilt mean when i turn 65? sgt. 1st class William o. Matthews Naples Italy in sgt. 1st class Michael Donohue staff finance no office of the Deputy chief of staff resource management Headquarters Usa eur and 7th army replies your letter presents an excellent Opportunity to explain to Usa eur service members this change which is now appearing on leave and earning statements Les. Soldiers have contributed to medicare since Jan. 1, 1957 but it has been invisible on the Les because it s been collected under fica. A legislative change which became effective Jan. 1,1991, changed the base on which social Security fica and medicare is computed. Additionally the Law requires employers i.e., the army to report the deductions separately. Because the army is in the process of converting to the new pay system assist was determined that the new reporting procedures would be implemented when soldiers Are converted to ass. Accordingly you saw the new reporting procedures when you received your new ass Les. While the amount remained the same in your Case that is not True for everyone. While the tax percentage remained the same 6.5% for social Security and 1.45% for medicare the base changed. The base for social Security is now $55,500 but medicare s base increased to $130,200. Therefore some soldiers will have collections made for a longer period each year the reason soldiers and other service members pay i Lunana Ivio Uii Aio 10 simple oui to in or military personnel have been full participants in the social Security system. Accordingly we Are in general entitled to the same benefits and Are subject to the same eligibility criteria and rules As other employees. Entitlement to medicare which occurs at age 65 for most people a although before then for disability beneficiaries a terminates entitlement to benefits under champs. Eligibility continues for medical care in military facilities on a space available  write us readers action line is the readers Quot court of last resort Quot striving to answer some of the questions about life overseas in a military environment or quest bus about policies and guidelines when other avenues for answers Are not readily available. If you have a question and Don t know where to turn Tor the answer write to readers action line co the stars and stripes unit 29480, Apo a 09211. All letters must be signed and preference Wilt be Given to those seeking information of general interest to our readers. Page 16 the stars and stripes saturday april 4, 1992 l