SACRAMENTO -- Gov. Jerry Brown has signed another private prison deal to take inmates out of California's crowded prisons.
The arrangement, announced Tuesday morning by Corrections Corp. of America, requires the state to pay $28.5 million a year for what is now a federal detention facility in California City. That prison can hold 2,304 inmates.
CCA in a statement to stockholders said the three-year contract requires the Tennessee-based prison operator to pay the first $10 million in needed upgrades to accommodate California's higher-security inmates. After that, the statement said, California taxpayers will foot the bill.
The deal will cause CCA to incur operating losses at first as it moves out federal immigration detainees and prisoners held for the U.S. Marshals Service to make room for the California prisoners who will arrive in December.