YOUNGSTOWN, Ohio (WKBN) – Youngstown’s private prison, the Northeast Ohio Correctional Center, will lose 185 jobs by the end of May.
Corrections Corporation of America, the company that runs the private prison, sent a letter to Youngstown Mayor John McNally saying it had to lay off workers because it lost its contract with the government to keep inmates at the Hubbard Road prison. Approximately 400 employees work at the facility and about 200 will remain.
The Mayor said officials with CCA have assured him they intend to find another contract to house prisoners and keep the local facility fully operational. But even with the loss of the inmates for the Bureau of Prisons, McNally said the local prison will continue to hold around 500 prisoners for the U.S. Marshal Service while the inmates wait to go on trial.
Nashville, Tenn.-based Corrections Corporation of America learned Dec. 29 that it had lost its contract with the Bureau of Prisons to another private company. However, the federal contract with the U.S. Marshals Service doesn’t expire until the end of 2018.
The Mayor said CCA is actually one of a number of local businesses expected to cut back this year, including the Cafaro Co., which is relocating its headquarters to Niles, and the Youngstown Post Office distribution facility in downtown Youngstown.
McNally said city officials have been preparing for the job losses from CCA.
“You know, we projected our income tax revenues from four or five different companies, job losses would probably be in the neighborhood of around $1 million, so we budgeted that for 2015,” he said.