Prison Space Arbitrage

Virginia’s Department of Corrections has dreamed up a clever way to solve its financial problems: Take in 300 prisoners from Wyoming, charging roughly $85 per prisoner per day, while keeping state prisoners housed in local jail and paying only $14 per day. Pocket the profit of $71 per prisoner per day.

Three hundred prisoners adds up to real money — about $21,000 per day, or more than $7.6 million a year!

Virginia Beach Sheriff Paul J. Lanteigne doesn’t think it’s such a good deal. He’s on the receiving end, collecting only $14 per day for 67 inmates who are required by state law, he contends, to be housed in a state prison. Meanwhile, the jail’s population is 1,479, but the jail is rated for only 889 inmates, reports Frank Green with the Times-Dispatch. “The jail is severely overcrowded,” Lanteigne said in papers filed yesterday.

All told, there are 1,799 such “out-of-compliance” inmates in local and regional jails across the state, according to DOC. The Department hopes to import as many as 1,000 more inmates to offset more than $40 million in budget cuts over the next two years.

Tough call. I admire the ingenuity of the DOC for engaging what amounts to prisoner arbitrage. I’m wondering if someone could create a market that evens out the variations in supply, capacity and price between prison systems. I’ve got 200 New York prisoners here, costing $120 per day per head. South Carolina, your cost is $50 a head. I’ll pay you $90, New York saves $20 and I pocket $10. I’ll tell you what, for that price, I’ll throw in free prisoner transport!

On the other hand, there is the problem of prison overcrowding in Virginia Beach and other municipalities. While I don’t normally get all worked up over the living conditions of the criminal class, some local jails are atrocious. On this particular issue, call me conflicted.

(Image: Butch Cassidy, one of Wyoming’s more celebrated prison inmates.)