In general, the report said, the state Corrections Department "lacks active long-term planning to accommodate inmate growth, leading to a disjointed approach to acquiring bed space that proves costly."
The 100-page audit by a Legislative Finance Committee review team said New Mexico pays significantly more than nearby states do for private-prison housing.
"Business decisions across two administrations may result in New Mexico paying an estimated $34 million more than it should pay for private-prison construction costs," the review said.
Corrections Secretary Joe Williams said higher operating costs are justified. He said New Mexico's costs cannot be compared to those for other states because prisoners here have more space, more programs and more security. Williams also said New Mexico's labor costs are higher, which increases the cost of building prisons.
The Corrections Department's official response said that "instead of looking at the use of privatization in such a negative manner, New Mexico should be proud that we are leading the nation and that it is working so well."
