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Governing reports on the issue of prison privatization using the example of Holdenville, OK. Holdenville took a gamble building a $34 million prison and hoping that the state would send prisoners there to relieve overcrowding rather than sending them -- and a $41/day per diem -- to prisons in Texas. Since the prison opened in Holdenville, other private prisons have also opened up across the state, many housing overflow prisoners from across the country. The model of treating prisoners as commodities raises some problems of its own, however.

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