DailyFinance Toolbar

Prison no longer NYC's cheapest room, part of nationwide trend

Posted 10:30 AM 08/06/09 ,
Print Text Size A A A

It used to be that you could get three meals a day and a roof over your head, as long as you committed a felony. Well, the days of being paid to pound out license plates are coming to a close. Now, any cash you make in the joint goes back to the joint. Local governments across the United States are considering fees for inmates as a way to offset falling tax receipts.

The programs vary from one municipality to the next, but the motivation is uniform. New York City, for example, is considering a bill that would require "wealthy criminals" to pay $90 a day for their hitches in the clink, in the hopes of chipping away at the $1 billion spent every year on incarceration. New Jersey is looking into much more modest fees for Camden County Correctional Facility, which is to be expected: everything's more expensive in Manhattan. The state would hit prisoners up for $5 a day to cover room and board and $10 per day spent in the infirmary. The measure would help the state recoup approximately $300,000 a year.



And, there are more. Prison systems in Virginia, Iowa and Missouri are putting plans together to address budgetary constraints.

Of course, the governments can't make their decisions on finances alone, as lobbying groups and civil liberties organizations have spoken out against these plans. In the extreme, charging prisoners could effectively create debtors prisons, though in practice, this seems unlikely. Prisoners aren't going to be allowed to starve, with even Arizona's controversial Sheriff Arpaio -- who warehouses inmates in tent cities -- waiving financial obligations for the impoverished.

Some states access prisoner accounts during incarceration to cover the fees charged, while others defer billing until the inmate's release. The latter approach hasn't been terribly effective, though. Overland Park, Kansas officials have only collected 39 percent of the fees charged. This isn't as troubling as Jackson County, Missouri's experience, where the government has spent more collecting than it has receiving.

So, let's take another look at New York. How would a hitch on Rikers Island stack up against the lowliest of the city's hotels? Gadling blogger Mike Barish spent $89 to stay at Hotel Carter, on West 43rd Street and Eighth Ave. It was only a dollar cheaper than prison, though the savings disappears when you see the local hospitality taxes on your portfolio, but the risk of getting shanked is much lower. For now, it's better to book a hotel room than to walk into a package store packin'.

Tom Johansmeyer

Tom Johansmeyer

View all Articles »
 

Tom Johansmeyer is a New York-based freelance writer. He specializes in the insurance, social media, clean technology and consumer business industries. Prior to his journalism career, Tom spent nearly a decade in management consulting as an entrepreneur and in the Big Four environment.

Read More
SUBSCRIBE TO:
RSS
Twitter

EMAIL:
Tom Johansmeyer
COMMENTS ( 0 )
GOT SOMETHING TO SAY?
YOU'LL BE ASKED TO REGISTER OR SIGN IN BEFORE POSTING A COMMENT.
Make a Comment
Comment
 
Follow Us
Follow Our Writers
Pallavi Gogoi Pallavi Gogoi Financial Writer
Peter Cohan Peter Cohan Financial Columnist
Sarah Gilbert Sarah Gilbert Features Writer
Gene Marcial Gene Marcial Financial Columnist
Jeff Bercovici Jeff Bercovici Media Columnist
James Altucher James Altucher Financial Columnist
Mercedes M. Cardona Mercedes M. Cardona Retail Reporter
Nikhil Hutheesing Nikhil Hutheesing Assistant Managing Editor
Latif Lewis Latif Lewis Business News Editor
More Writers

Headlines From DailyFinance Partners

CNN Money
CNBC
Smart Money
Fox Business
Engadget
BloggingStocks
 WalletPop
AOL Small Business
Luxist
Housing Watch
AOL News
Business NewsInvesting and Real EstatePersonal Finance at WalletPopSmall Business

Terms of Service | Privacy Policy | Trademarks | HELP

© 2010 AOL Inc. All Rights Reserved