The state of Tennessee has renewed its contract with private prison operator CoreCivic to run the South Central Correctional Facility in Wayne County.Â
The State Building Commission approved the three-year, $168 million contract with CoreCivic at a meeting on May 8. The contract will take effect on July 1 and run through June 30, 2028.Â
Lt. Gov. Randy McNally asked Tennessee Department of Correction Commissioner Frank Strada at the meeting if recent maintenance issues at the facility had been resolved. Strada responded that a sinkhole had been filled and plumbing repairs would be completed by the end of the month.Â
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The South Central facility is one of four prisons in Tennessee run by Brentwood-based CoreCivic that have faced scrutiny in recent years due to poor conditions and inmate deaths. The Nashville-based prison operator is currently under investigation by the U.S. Department of Justice Civil Rights Division as a result of conditions at Trousdale Turner Correctional Center in Hartsville.Â
State audits have shown violations of state policies, below-par medical care and high turnover rates when it comes to staffing the facilities.Â
The building commission agenda said CoreCivic has shown “the ability to comply with applicable correctional standards and specific court orders … [and] a history of successful operation and management of other correctional facilities.”Â
The new contract comes as the state legislature recently passed legislation to increase oversight in the private prisons by requiring a facility’s inmate population to be reduced by 10 percent if the death rate is double that of an equivalent state-operated prison. The law — awaiting Gov. Bill Lee's signature — also requires the population cuts to continue until the prison rectifies the issues.Â
CoreCivic inmate populations at facilities company operates could be cut if deaths continue
State Democrats have argued that Republicans continue to support CoreCivic due to the operator’s $3.7 million in campaign spending since 2009, according to a report from the Tennessee Lookout.Â
The news comes as another piece of prison legislation was the subject of Lee's first-ever veto on May 5. Lee rejected Senate Bill 455, which would have given the state Board of Parole more leeway to deny parole to prisoners.
The contract renewal also follows CoreCivic having reported first-quarter results of $488.6 million in revenue vs. analyst estimates of $476.5 million, financial website StockStory reports. CoreCivic announced earnings per share of $0.23 compared to analyst estimates of $0.13. At the end of Thursday’s trading session, CoreCivic shares (ticker: CXW) were valued at $22.02, down $0.58 and representing a 2.57 percent decrease. The share value was up 3.27 percent in after-hours trading.
Lee wrote a letter to lawmakers saying the vetoed legislation goes against a 2021 law aiming to lower recidivism.Â
“Together, we recognized that the vast majority of offenders will return to our communities, and their successful reentry impacts the safety of every neighborhood for the better,” Lee said.Â
The Republican supermajority has the power to override Lee’s veto when the members return to session next year, a move supported by the Tennessee District Attorneys General Conference.
“This legislation strikes the right balance,” the conference said in a statement. “It supports rehabilitation while affirming the seriousness of crime. It protects victims. It promotes public safety. We are disappointed Gov. Lee has chosen to stand in opposition to these goals. His veto sends the wrong message to victims, to law enforcement and to the citizens of this state.”
This article was first published by our sister publication, the Nashville Post.
