Pubdate: Tue,  2 Dec 2003
Source: Los Angeles Times (CA)
Copyright: 2003 Los Angeles Times
Contact:  http://www.latimes.com/
Details: http://www.mapinc.org/media/248
Author: Dan Morain, Times Staff Writer
Bookmark: http://www.mapinc.org/prison.htm (Incarceration)

PRISON FIRM DONATES TO GOVERNOR

SACRAMENTO - Gov. Arnold Schwarzenegger, who rejects donations from
the state prison guards union, accepted $53,000 last week from a
corporation that operates private prisons and has clashed with the
union over private lockups.

The money came as the state prepared to close a 224-bed Wackenhut
Corrections Corp. facility Dec. 31 in the Central Valley town of
McFarland. Wackenhut made the donation after its president read a news
report in which Schwarzenegger voiced support for prison
privatization, the executive said.

The firm also gave $5,000 to Schwarzenegger's recall
campaign.

The $58,000 amounts to the largest contribution the company has given
to any California politician.

In a telephone interview, Wayne H. Calabrese, president of Wackenhut,
based in Boca Raton, Fla., said Schwarzenegger did not solicit the
contribution and might know nothing about the company and its dealings
in California.

"We have a large investment in California, in infrastructure and our
employees," Calabrese said.

"We want to do everything we can to preserve our business base in
California."

Last year, in a move fought by Wackenhut and other prison companies,
former Gov. Gray Davis canceled state contracts with three private
prisons - to save money, he said. The California Correctional Peace
Officers Assn. had pushed for the closure. The union has long opposed
private prisons and was one of Davis' biggest benefactors, giving him
$1.4 million during his first term.

"We were frustrated with the previous administration," Calabrese said.
"We thought we should support a candidate and governor who has
articulated support for public-private partnerships."

The company gave to Schwarzenegger's gubernatorial campaign and to a
separate fund he established to support the recall of Davis, a top
company executive said.

Schwarzenegger spokesman Vince Sollitto, asked whether the donations
would affect the administration's decision on the Wackenhut contract,
said, "Of course not."

The contract won't "rise to the level of the governor's
consideration," he said. Corporations operate nine private facilities
in California that house 3,000 minimum-security inmates, although
three of the lockups are slated to close next month. Wackenhut has
four, including the one in McFarland.

Payments from the facility represent less than 1% of Wackenhut's
revenue. Whether or not the state continues to send inmates to
McFarland, the company is obligated to make $5 million in lease
payments, according to a recent Wackenhut filing with the Securities
and Exchange Commission. The company holds out hope that it can
reverse the decision to close the facility.

The firm's Florida lobbyist, David L. Ericks, is close to
Schwarzenegger's finance director, Donna Arduin, who was Florida's
budget director before coming to Sacramento. Ericks was in Sacramento
last week when the governor was sworn in. He could not be reached
Tuesday for comment Schwarzenegger spokesman H.D. Palmer said
California's Department of Finance would have no role in deciding
whether to extend Wackenhut's contract. "We don't do line approval,"
he said. "That is handled by agencies." Palmer said Ericks'
relationship with Arduin would have "zero" impact on such a decision.
"He is a registered lobbyist in the state of Florida," Palmer said.
"He is not registered in California."

The governor has raised more than $1.2 million since the Oct. 7 recall
election and plans fund-raisers starting next week to repay $4.5
million in bank loans he took out to help finance his campaign.

Schwarzenegger has a policy of refusing campaign donations from public
employee unions, including that of the guards. He has said he does not
want to take donations from such unions because he must negotiate pay
and other labor issues with them.

"It sounds to me that Wackenhut is doing exactly what they accuse us
of doing - getting involved in 'pay to play,' " said Lance Corcoran,
executive vice president of the guards union.

"Wackenhut is a savvy corporate entity," he added. "They have great
influence in other states. I'm sure they are bringing that playbook to
California."

Corcoran said he doubted that Schwarzenegger would be influenced by
the donations: "Ultimately, he will do the right thing for public safety."

Corcoran said the union opposed private prisons because "corrections
is a public function and should not be sold to the lowest bidder."

Advocates of private prisons have said that the union opposes their
efforts because it fears that they could reduce the need for
state-employed prison officers.
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MAP posted-by: Larry Seguin