Officials said the state had sold the Lake Erie Correctional Institution, an 11-year-old prison housing about 1,500 nonviolent prisoners, to the Corrections Corporation of America for $72.7 million. The state will now pay the Nashville-based company to run the facility.
The privatization of parts of Ohio’s prison system was one of the deficit-closing provisions contained in the budget Kasich signed into law earlier in June.
In all, Ohio hoped to sell five prisons, and raise as much as $200 million, in the privatization process. But the bids on the other four facilities fell short of the state’s hopes and they will remain in government hands for now.
Source: Kim Palmer for Reuters.