Tennessee Correction Department requests $6.8 million increase in private-prison payout

Commissioner Frank Strada of the Tennessee Department of Correction says private prison contractor CoreCivic is a “great” partner, despite the company being under investigation by the U.S. Department of Justice. (Tennessee Lookout Photo by John Partipilo) Commissioner Frank Strada of the Tennessee Department of Correction says private prison contractor CoreCivic is a “great” partner, despite the company being under investigation by the U.S. Department of Justice. (Tennessee Lookout Photo by John Partipilo)

By Sam Stockard / Tennessee Lookout November 14, 2024 3 min read

The Tennessee Department of Correction wants to pay $6.8 million more to the state’s private-prison operator next year despite the cloud of a federal civil rights probe and the company’s consistent failure to fulfill contract obligations.

The 3% increase, which officials are justifying to meet increased expenses, would push CoreCivic’s payout up to $244.5 million to operate four state prisons, 15% of the state’s $1.63 billion Correction Department budget request.

Correction Commissioner Frank Strada stood by his previous support for CoreCivic and called the relationship between the state and company a “great partnership.”

Yet the publicly traded company has paid more than $29.5 million in liquidated damages — fees paid for breach of contract — since 2022 for failing to meet state contractual requirements, mainly for staffing shortages. The company experienced a 146% turnover rate in 2023 because of difficult hiring correctional officers, which makes it more difficult to monitor prisoners and avert safety risks.