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Community Renewal Good Stories - Eastern Kentucky

Rural Kentucky Employer Takes Full Advantage of RC Wage Credits

Eastern Kentucky, RC

An agreement between the Corrections Corporation of America (CCA) and the State of Vermont and the ability to capitalize on the RC wage credit worked together to create 47 new jobs in the Eastern Kentucky RC (EKRC).

CCA, the Nation's largest owner and operator of privatized correctional and detention facilities and one of the largest prison operators in the United States, announced an agreement in January 2004 to manage up to 700 Vermont inmates. CCA elected to house 215 of those 700 inmates at the Lee Adjustment Center in the RC, creating an additional 47 jobs. "CCA is one of the larger employers within the EKRC and we are excited about the new jobs," said Susan Wilder, EKRC State director.

CCA operates 64 facilities (including 4 in RCs) with a total capacity of approximately 65,000 beds in 20 States and the District of Columbia. Employers in RCs that employ RC residents can receive a yearly wage tax credit worth up to $1,500 per employee. CCA claimed approximately $436,000 in RC Wage Credits in both 2002 and 2003, according to Steve Brown, CCA director of financial reporting. According to the CCA Web site, through CCA's ownership of correctional facilities, the company also provides valuable economic benefits to local communities through property, sales, and other taxes, as well as providing a stable employment base. CCA is a strong contributor in the communities in which their facilities are located with a dedication to charitable giving and volunteerism.

For more information on the EKRC, contact the Chairman of the Booneville/Owsley Industrial Authority, Ronnie Callaghan, at (606) 593-6800.