http://globaleconomicanalysis.blogspot.com/2010/02/monmouth-county-new-jersey-looks-to.html

Monmouth County Freeholder John D’Amico last week proposed turning the county jail over to a private operator, saying the union salaries paid to the 300 correction officers who work there are “unsustainable.”

That’s putting it mildly. And with a projected annual savings of between $4.7 million and $9.4 million, the freeholders need to look carefully at the privatization option. It may well be that corrections officers have finally priced themselves out of a job.

The two highest-paid workers in the county last year were corrections officers, who more than doubled their base pay with overtime. Dana J. Townsend and Robert B. Kornett were the beneficiaries of an out-of-control system. In 2009, both of them raked in $186,000 each — $11,000 more than Gov. Chris Christie. And each received more than $98,000 in overtime alone.

If nothing is done, the financial squeeze promises to get worse. More than 200 guards are due to receive the top-step base salaries of $89,000 or $90,500 if the union’s proposals are adopted in pending interest arbitration. Last year, 36 corrections officers made more than $130,000 in base pay and overtime, and 150 made more than $100,000.

Twenty-five jail guards made more than $40,000 in overtime alone last year, and 50 made more than $25,000 in overtime. The current union contract ensures that most of the overtime goes to senior officers, not those officers who make less and therefore would not cost the taxpayers as much.

Could the union head off privatization by negotiating salary and benefits reductions and changing the ground rules for meting out overtime? Possibly. But even that might not produce sufficient savings. The freeholders need to study the options carefully between now and the March 11 final vote and public hearing on the budget.

Union members often like to trot out the old canard that the jail pays for itself by taking in state prisoners, among others. It’s not even close. In 2009, the jail did generate some revenue, primarily from payments for housing state prison inmates and federal detainees.

However, the total jail payroll requested for this year is $31 million for salaries, $5 million for overtime and a total $47.6 million for operations. Those figures dwarf the income brought in by housing state and federal inmates, making the jail far from self-sustaining.

I’m entirely for marketizing the prison system. Just about anything that would help slow or stop the prison industrial complex… however in cases like this what’s really going to happen is that some company who has ties with government will get a deal to take over the prison. It’s not even close to a free market in arbitrartion and restitution / punishment and such corporatist systems can very easily lead to results worse than a straight government controlled setup as the incentives are in some cases even more perverse.

In times like this however there is simply no getting around these possible problems. You can only fight economic reality so long. In the end it wins. Taxpayers will have to shake off as many leeches as quickly as possible.

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