In the face of tight budgets and growing public opposition to new prison spending, officials in many states have employed a variety of "back-door" schemes to finance new prison construction. The mechanisms vary but the consequences are the same: rapid prison expansion that takes place with little public involvement or oversight.
A review of recent prison, jail and detention expansion initiatives shows that such back-door financing mechanisms are becoming more common at the federal, state and local level. Behind this trend is a cottage industry of investment bankers, architects, building contractors and consultants who have made enormous profits by encouraging local and state governments to borrow tens and hundreds of millions of dollars to build prisons and detention centers that the public does not want and cannot afford.