By DAVID CRARY, AP National Writer
1 hour, 56 minutes ago
NEW YORK - Though state governments are no longer fueling a private prison boom, the industry's major companies are upbeat — thanks in large measure to a surge of business from federal agencies seeking to house fast-rising numbers of criminals and detained aliens.
Since 2000, the number of federal inmates in private facilities — prisons and halfway houses — has increased by two-thirds to more than 24,000. Thousands more detainees not convicted of crimes are confined in for-profit facilities, which now hold roughly 14 percent of all federal prisoners, compared to less than 6 percent of state inmates.
Critics, including prisoners rights groups and unionized corrections officers, contend the policy amounts to a federal bailout of an industry that would otherwise be struggling with a checkered record. The companies and the government say they provide a flexible, economical alternative to building new federal prisons as get-tough policies boost demand for space in an overcrowded system.
"If the Bureau of Prisons is going to build capacity for themselves, they have to plan eight years in advance," said John Ferguson, chief executive of the Corrections Corporation of America, the biggest company in the field. "It takes a lot longer in the public sector than private sector to get things done."
http://news.yahoo.com/s/ap/20050730/ap_on_re_us/private_prisons