-Caveat Lector-

Friday, December 15, 2000

State May Purchase Prisons

By S.U. Mahesh
Journal Capitol Bureau
SANTA FE — The Legislative Finance Committee is appraising the two private
prisons in Hobbs and Santa Rosa with a possibility of turning them into
state agencies.
An official for Florida-based Wackenhut Corrections, which operates the
prisons, said the company is willing to negotiate if New Mexico lawmakers
want to purchase the facilities in Lea and Guadalupe counties.
The committee on Thursday directed General Services Secretary Steven
Beffort to conduct the appraisals and determine a fair market value on each
prison.
The directive comes a day after Corrections Secretary Rob Perry told
lawmakers that his department is negotiating a new contract with Wackenhut
that would allow the state to either buy or lease the two private prisons.
The Legislative Finance Committee hasn't made a decision on whether to
purchase the prisons, but its chairman suggested the time is right.
"Since we have a little bit of more money, it would be a good thing to
consider," Sen. Ben Altamirano, D-Silver City, said referring to a $367
million surplus expected this fiscal year.
Altamirano, who also chairs the Senate Finance Committee, said he didn't
know if his colleagues support buying the prisons.
But he added, "I personally support it if the price is right."
Retiring Sen. Billy McKibben, R-Hobbs, said the Legislature should use the
surplus to buy both prisons as a one-time capital investment.
"I think it would be a prudent thing to buy the darn things," McKibben said.
During the 1998 legislative session, a proposal for the state to buy both
prisons for $68 million, while they were still under construction, passed
the Senate but died in a House committee.
The 1,200-bed Hobbs prison opened in May 1998. The Santa Rosa facility with
600 beds began accepting inmates in January 1999.
Wayne Calabrese, president of Wackenhut, said he couldn't put a fair market
value on the prisons because several improvements have been made to both
since they were opened.
"We have to get an appraisal of our own," Calabrese said Thursday in a
phone interview from Palm Beach Garden, Fla.
Wackenhut and its partners are willing to negotiate any proposals to sell
the prisons, he said.
The proposed corrections department contract with Wackenhut also calls for
a per diem increase from $49.88 a day to $53 a day per inmate. That would
cost New Mexico taxpayers an additional $1.2 million a year to house state
inmates in private prisons.
Copyright 2000 Albuquerque Journal

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