The Lake City Correctional Facility is a 350-bed privatized youthful offender facility operated by the Corrections Corporation of America (CCA).

• Lake City has reduced program staff turnover and resolved major noncompliance issues that undermined the quality of its programs for the first half of the contract period. Following state agency intervention, program performance showed significant improvement in 1998-99.
• Lake City's programs are comparable to the programs at the public youthful offender prisons and its per diem costs are consistent with the costs of similarly sized public youthful offender prisons.
• The Legislature exempted private youthful offender prisons from any cost savings requirements to ensure that vendors provide programs of optimal capacity and high quality. If Lake City establishes additional vocational and industry programs as planned, it could meet this legislative intent.
• The commission should renew the contract with CCA for the continued operation of the Lake City prison. However, the commission could save over $560,000 annually by lowering the marginal per diem rate paid to CCA for inmates in excess of 90% capacity. In addition, the commission should add contract provisions to allow it to sanction the vendor for noncompliance with state and federal regulations and contract requirements.