Corrections Corporation of America (CXW) Hit As California Announces Sweeping Prison Overhaul
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Corrections Corporation of America (NYSE: CXW) is under heavy pressure early Tuesday which appears to be related to reports that larger customer California announced major overhaul of its prison system.
The state is seeking to cut billions in spending, cancel construction projects, close one lockup and bring back 9,500 inmates housed in other states, according to the LA Times.
"It's a massive change," said Matthew Cate, secretary of the California Department of Corrections and Rehabilitation.
The State of California Department of Corrections and Rehabilitation accounted for 13% of Corrections Corporation of America total revenue for the fiscal year ended December 31, 2011.
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The state is seeking to cut billions in spending, cancel construction projects, close one lockup and bring back 9,500 inmates housed in other states, according to the LA Times.
"It's a massive change," said Matthew Cate, secretary of the California Department of Corrections and Rehabilitation.
The State of California Department of Corrections and Rehabilitation accounted for 13% of Corrections Corporation of America total revenue for the fiscal year ended December 31, 2011.
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