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CCA Re-Opens Correctional Center in Youngstown
NASHVILLE, Tenn.-- Corrections Corp. of America, the nation's largest provider of corrections management services to government agencies, announced today that it has resumed operations at its Northeast Ohio Correctional Center in Youngstown, Ohio.CCA began receiving an inmate population this week from the U.S. Marshals Service. The company expects to initially manage an estimated population of 300 federal prisoners from Northeastern United States federal court districts that are experiencing a lack of detention space and/or high detention costs.In May 2003, a lawsuit filed five years previously by the Youngstown Board of Education against the city of Youngstown and CCA was resolved (read story)."The re-opening of the 2,016-bed medium security Northeast Ohio Correctional Center represents the culmination of considerable efforts by political and community leaders and CCA. City, state and federal officials in Ohio have been instrumental in bringing about this opportunity, which creates economic vitality for Ohio and allows us to meet the growing needs of our current customers and a potential array of prospective Northeastern state customers," says John Ferguson, CCA president and chief executive officer. "We are obviously pleased to announce that CCA is re-opening the Northeast Ohio Correctional Center and we wish to recognize some of the many important Ohio leaders whose support has helped bring about this important re-opening of the Northeast Ohio facility, specifically Youngstown Mayor George McElvey, Mahoning County Commissioners Dave Ludt, Edward Reese and Vicki Allen Sherlock, and Sheriff Randall Wellington, as well as Congressman Tim Ryan."The U.S. Marshals, along with other federal agencies and numerous states, have expressed interest in the Ohio facility as their bed capacity needs expand, Ferguson says. CCA is currently pursuing a number of additional opportunities for the Northeast Ohio facility. CCA has hired and trained approximately 135 correctional employees at the Northeast Ohio Correctional Center, and as populations increase, that number will rise to nearly 400 employees should the facility be filled to capacity."While we certainly desire to operate the facility at full-capacity, we have determined that having a minimum population of 300-500 offenders with a staff of up to 150 correctional employees is economically viable for the company and meets immediate customer needs," Ferguson says.The immediate effect of the facility re-opening and initial population of U.S. Marshals Service offenders is not expected to impact materially CCA's previously announced 2004 earnings per share guidance.Corrections Corp. of America is one of the largest prison operators in the United States, behind only the federal government and four states. CCA currently operates 64 facilities, including 38 company-owned facilities, with a total design capacity of approximately 65,000 beds in 20 states and the District of Columbia."