Economic Development in Prison Towns

Prisons were first heavily introduced to rural communities during the late 20th century when

production advancements left the agricultural and manufacturing dependent rural towns struggling to

uphold financial stability. In the 1980’s the prison population increased significantly resulting in demand

for prison expansion. This rapid increase of inmates was largely law to stricter crime laws, the

implementation of mandatory sentencing and the three strikes law. Huntsville differs to the majority of

rural prison towns as the correctional facilities in the Texas town were built a century before the boom

of prisons. However, the purpose of this piece is to analyze the effects of prisons in rural towns in

current times. Small towns suffering on the brink of poverty were receptive to the prisons despite the

stigma such an institution brings, due to the promise of prosperity. For every 100 inmates, 35 jobs are

created leading to local officers viewing prisons in an entire new light. Prisons were portrayed as a tool

for economic development; however, the few recent studies that have been conducted have

demonstrated mixed results on whether prisons truly do provide benefits to rural America.

Prison directors would preach to small town communities about how prisons can rejuvenate an

entire community. ‘Nonpolluting, no seasonal fluctuations, and in most cases virtually invisible’ are

among a few claims that prison officials would advertise. Subsequently, competition for prison

construction increased dramatically. As communities began improving their water systems, donating

land, and offering tax abatements the long term ramifications of prison development projects were not

adequately considered.

Employment aspect

The promise of prosperity often translates to the promise of jobs. In the case of prisons,

directors do not go to people already residing in the construction region. The majority of positions

require a certain level of education and experience which many rural residents do not possess. Seniority

rules in public prison systems also result in other officers from out of town being transferred into the

new facility.

The few positions that rural residents may be eligible for are customarily granted to inmates.

Jobs such as painting, distributing meals, and cleaning are used as part of a rehabilitation program to

allow the inmates to maintain an orderly routine and acquire responsibility. Inmates are also

compensated on average 42 cents an hour as opposed to the minimum wage of $7.25. This limits the

amount of capital spent of menial labor within the correctional facility.

The major employer in Huntsville is the Texas Judicial Prison System whom currently employs

6000 people. The vast majority of positions require a bachelor’s degree or service time in the Military.

The sole type of employment within the prison in which a College degree or Military experience is not

required is a correctional officer. The annual salary of a correctional salary in Huntsville is $29,000.

$22,000 below the national average income and $21,000 below the state average income. The job also

has limited growth opportunities.

Despite the lack of employment opportunity within the public prison system, the rise of private

prisons, 1 out of 6 prisons are now private, have contributed to a higher employment rate of local

residents. However, private prisons possess an extremely high turnover rate, 40.9%, providing no

employment stability. Exit interviews have shown the main reasons on this statistic to be due to poor

training and low wages.

A prison does not necessarily improve the job prospectus for local town residents. Therefore the

economic benefits with regards to a decrease in unemployment rates and an increase in income is

implausible.

Social effects

The social stigma that a prison transfers on to a town’s image can be detrimental to a

community’s economic development. Although associated industries may be brought in as a

consequence of the incarceration facility, such as delivery companies or mattress firms, the benefit is

greatly outweighed by the number of companies deterred due to the town’s reputation. Another

deterrent for businesses is the fact that prisons do not have to comply with community environmental

controls such as water quality. This can lead to health inspection complications within service industries

such as hotels and restaurants.

Colloquially, Huntsville is known as the prison town. ‘Execution Capital’ and ‘Prison City’ are

among the most common descriptive terms of the town. The prison is what seems to define Huntsville

despite its invaluable historical and cultural value, educational opportunities, natural enclave, and

country living perks with close proximity to major cities. This is an example of how the stigma of having a

prison in one’s town creates an unfavorable reputation regardless of the boundless favorable aspects

that a town may possess.

A low income median of Huntsville is also a part of the negative social aspects of a prison. The

town’s population is from 21% of incarcerated individuals who make little to no income. This decreases

the town’s median income value, further discouraging businesses. Huntsville does attract industries that

target college students as a large portion of Huntsville’s 40,000 residents attend the town’s university.

The growth of the university has assisted in enticing new enterprises, however, due to a student’s low

income the median income value is depreciated. This decreases retailers from relocating or expanding in

Huntsville as data suggests its residents have little to no disposable income.

The social stigma that Huntsville possesses along with the consequent lower median income

may avert a number of businesses. However, accentuating its assets as a historical and cultural town

through marketing pursuits is a possible way in which to overcome its current branding.

Money circulation

Prison towns also tend to attract chain stores as opposed locally owned enterprises. This

decreases the amount of circulation of dollars within a community as the money is not locally

reinvested. This effect may be overcome with an increased amount of benefits offered to small

businesses and entrepreneurs such as the small business development center and tax incentives.

The amount of money poured into the public prison system takes critical monetary capital away from

other development projects. In the state of Texas it costs the tax payer $107.87 a day per inmate. There

are a total of 152,000 inmates as of 2015 in the Lone Star state. That is a staggering $16,264,000 a year

on incarnated individuals in Texas alone. The vast amount of rural prisons in the 2nd largest state in the

US takes state money away from education and community development.

Detrimental effects also occur within a town’s social fabric and environment as inmates begin to

settle in rural communities as opposed to urban. This affects the entire nation as government dollars

and political representation are now allocated different due to an increase in ex inmate residents in

rural areas.

Recession proof

Prisons have proven to be far from recession proof. Jobs are also made redundant as state

officials tighten the prison allocated budget during times of economic hardship. In 2011 the Texas

Department of Criminal justice conducted 550 employee layoffs to save $4.5 million. They also raised

employee health insurance, cut free housing the prison employees and began charging correctional

officers for meals.

During an economic bust, small rural towns turn to prison construction in order to rejuvenate its

community, yet rarely to any avail. An example is Bonne Terre, a small Missourian town that purchased

lands for potential new prisons issuing bonds of $14 million to ensure the necessary infrastructure

improvements, such as new roads, were implemented. The new prison did not create sufficient revenue

to repay the loans and the town found themselves more economically depressed than before the

venture begun.

The future of prison towns

Rural regions that pursue prison construction as a growth strategy forgo long term prosperity

for short term growth. Evidence suggests that towns that have prisons do not experience significant

economic growth compared to their correctional system free counterparts over a long term span of

time. A relevant example is Nacogdoches is a college town who has similar population to that of

Huntsville, yet is not a prison town. The median income for the town is $27,000, only $2000 short of

Huntsville’s median income. The promises of lower unemployment rates and greater economic

prosperity are deceptive.

A prison town must take into account the possible negative social stigma and the detrimental

effects to economic development. Once these problems have been identified, solutions can be

implemented. These solutions mainly focus on marketing. Promoting Huntsville can be implemented

through the use of websites, social media, and strategically placed advertisements. Redeveloping the

outsiders perspective on the town, focusing particular on targeting prospective businesses as well as

potential new residents.

Strategies for Huntsville

Huntsville possesses a vast amount of attributes that have the potential to assist Huntsville in growing

into a prosperous town. I believe that Huntsville could capitalize greater on these assets by using a

number of marketing strategies.

Projecting the quality assets of Huntsville

The current websites for the City and the Chamber of commerce may come across as outdated,

projecting an image of an old and outdated City. Businesses will often look at the City and Chamber

websites for more information on the town and what it has to offer. The websites do not accentuate the

potential of the city nor does it offer clear incentives or information for businesses to expand or

relocated to Huntsville. By updating the websites and improving the first impression of Huntsville, these

2 major powerhouses will contribute even more in the attracting businesses to town. In addition, a

website solely dedicated to Economic development would be ideal. This would allow potential business

looking to relocate gain access to all the necessary information in a clear and concise manner.

The most affordable price quotes I discovered is Huntsville Tech $899. The software used is also

compatible with ChamberMaster which is essential for the Chamber of Commerce website.

Benefits of using Huntsville Tech

Local face to face consultations are possible and local discount given

Previous website work with the Chamber (Fair on the Square website) Security for website higher than creating a website created independently

The table below shows the prices to create a website without professional assistance with software that is compatible with ChamberMaster.

Website Creator Payment per month Payment per YearWordPress $9 $95Joomla $7 $84Drupal Annual only $75Concrete5 $4.25 $49LiveEdit $18 $216Go Daddy $5.99 $71

Increased Marketing of Huntsville area

Marketing strategies, other than the utilization of online websites, could be the strategic placement of

marketing materials. Brochures and leaflets of various commodities of Huntsville such as tourism

attractions and quality of living could be placed in very urbanized areas that do not possess the same

quality of Huntsville such as greenery, community feel and quality of life. Target areas may include large

cities such as Houston. Members of the future Economic Development Council could distribute these in

real estate agencies, hotels, employment agencies, airports, public transport areas, at target industry

headquarters or any establishments that will allow the distribution of Huntsville marketing materials.

This may even include hospitals or dentist waiting rooms.

Establishing Target industries

Huntsville has great potential with a qualified workforce population yet the target industries are

unclear. Once these industries have been established, marketing can be directed towards these types of

companies.

The target industries could capitalize on Huntsville’s current, natural and locational attributes. Potential

target industries include; cyber security and security related industries, educational related industries,

transportation logistics industries, and environmental industries.

Economic Development Slogan

Cohesiveness among the community about its economic goals and plans are essential in

attracting new businesses. A business will conduct independent, mostly online, research about the

town. The town must have an image and message that conveys economic potential and opportunity for

a business. The main solution to this would be reform of all websites so that there is an increased

amount of economic development information and ultimately a website for Huntsville solely dedicated

towards Economic Development. A one stop shop for all information a business looking to expand or

relocate may need. However, in the meantime, a low cost way for adding cohesiveness amongst the

community is an Economic Development Slogan. The slogan I have devised is the following:

Proud of our heritage, United in our future

This slogan identifies that Huntsville is a unique historically rich town yet also ready to evolve and grow.

The City may want to encourage all businesses and institutes to display the slogan on their websites or

physically at their location. This unified message has the potential to overshadow part of the Prison City

Stigma.

Tourism all access passes

An all access passes for all museums and activity centers. The pass totals up to be discounted price if the pass is bought compared to paying individually for each activity.

OR

The all access pass may be distributed if one were to stay at a Huntsville Hotel. A discounted price for all attractions if proof of a hotel booking is presented.

Among the benefits of the all access pass are:

1. All tourism organization profit from anyone who buys the pass2. Hotel stays will increase3. Increased exposure of Huntsville4. Increase Hotel/Motel tax revenue

In addition to the passes, weekend trip itineraries for different enthusiasts could be created. Perhaps a

weekend itinerary for someone who enjoys the outdoors and one for someone who enjoys museums.

The ghost tours has great potential to be utilized in a weekend activity itinerary has the tours are

conducted at night. A leaflet with the weekend stay and promotional all access pass could be created.

Social media

Exposure of Huntsville videos on website and through social media. Social media is a free way to directly

connect with people and promote the town. Throughout my internship I have development social media

strategies including long ideas and daily management.

Long term ideas

‘Like’ the Facebook pages of members

Spotlight on new members who have joined – incentive to join

Album of our members with link to website – incentive to join

Video message about purpose and benefits of joining the Chamber

Video of common Questions and answers

Videos from recent events

Profile page of next large event- Shot in the dark

Album why join the chamber of commerce

Title untitled albums

Invite ‘followers’ to Chamber events. Make events on Facebook

Post real success stories from Chamber events

‘Like’ on us on Facebook small notelets on table displays

Tag business pages in photos posts

Ask questions such as: What are you doing this summer to keep cool? This increases engagement in on the page

Monthly competition Possibilities:

Tie in a photo contest with what awareness month.

Share our page for a chance to win X. Photo contest from latest major event. Caption contest from recent event photos. Winner of contest gets business profile shared. All participants have photos in album.

Social Media Strategies with limited time

10 minute every few days goal:

Post latest update whether it is an event, photo or membership spotlight. No recent event or membership spotlight?May post an Interesting community development related article. The article could be Huntsville related such as a new business being built or a helpful community articles such as ‘water saving tips’. Regular updates will encourage more followers and increased interest. More prominence on social media will increase visibility of the Chamber in the community.

For member spotlight: Have member email special events such as a large sale and have the Chamber publish on social media. Prospective members will recognize the Chamber provides free advertising online.

Reply to any comments or questions. List of prospective members and research their social media page: like page, photos, comment. Consistency over quantity.

Take Advantage of the Greater Houston Partnership Summit

The following information was collected from my note taking during the Economic Developing meeting with the Greater Houston Partnership. I then proceeded to compare the GHP suggestions with the current goals of the City. Next I analyzed the current goals of the City with the City budget. I concluded with a brief statement about my findings.

Top 3 ways to become most competitive in the region

Well-funded Economic Development Officer Ready sites to promote to businesses and create jobs

Business will know the surface and the space therefore eliminating risk Incentive toolbox. Flexible to move from one program to the next

Economic Development Officer

A figurehead to unify the four major economic development powerhouses; The City, The County, The Chamber of Commerce and the University. Someone to facilitate the process of establishing goals, objectives Someone who can promote and market Huntsville to companies and assist with relocation, improvement or expansion of businesses in Huntsville in order to secure opportunities for economic and business development and increase local employment.

Ready Sites

Assess areas that have potential to be used for office blocks, manufacturing plants or services. Market to relevant businesses according to size and location.

Tool Box

The incentives that Huntsville will use to draw businesses and residents into the town. The following are a few of the attributes that Huntsville pertains. Small town quality of life with the benefit of close proximity to a large metropolitan city. Large and expanding university producing a qualified and skilled workforce. Historical and cultural value being one of the oldest cities in Texas.

Major Elements missing in online resources

Why Huntsville/ Walker county: Advantages and distinctions to attract residents and businesses Target industries Workforce demographics Transportation and infrastructure Business Costs Large employers Incentives

Chamber of Commerce

Focus a lot on small businesses and missing large business prospects.

The following pages show the City Council goals, allocated budgets towards strategically goals and a short analysis of how the City goals, budgets, and Greater Houston Partnership suggestions correlate.

City Council Goal Statements

City Appearance – Provide policies, amenities, and all events that enhance the City’s already beautiful and historic natural environment.

Communications – Provide public information outreach efforts that inform the public of City operations, accomplishments and policies and allows for citizens input on matter of Council policy.

Economic Development – Promote and enhance a strong and diverse economy.

Infrastructure – Ensure the quality of the City utilities, transportation and physical structures so that the City’s core services can be provided in an effective and efficient manner.

Marketing – Develop a new, differentiated identity about Huntsville in the minds of residents, visitors and potential businesses.

Resource Development – Enhance the quality of life for citizens, businesses and visitors by leveraging the Human and fiscal resources available to the community.

Finance – Provide a sustainable, efficient and fiscally sound government through conservative fiscal practices and resource management.

Public Safety – Provide safety and security for all citizens

Strategic Planning 2014/2015 Huntsville Budget

Goal 1 City Appearance:

Consistently enforce codes contained in section 22 $40,000

Implement tree planting campaign $6000

Goal 2 Communication – Provide public information outreach efforts that inform the public of City operations, accomplishments and policies and allows for citizen input:

Continue the State of the City Address and grow the audience $2000

Print City Calendar that provides regular and routine information and highlights accomplishments.

$4500

Goal 3 Economic Development- Promote and enhance a strong and diverse economy:

Seek a public/private partnership that will allow the City to leverage Hotel Occupancy Tax proceeds to expand and enhance visitor Center

$75000

Goal 4 Infrastructure – ensure the quality of the City utilities, transportation and physical structures:

Consider adding longer range planning into the Capital Projects program by updating infrastructure Master plans and condition assessments

$900,000

Goal 5 Public Safety:

Carefully review and consider the possibility of a consolidated public safety complex finance by retired debt. $225,000

Total Resources assigned to the City’s Strategic Planning Goals and Objectives: $1,252,50

The strategic planning budget does not allocate resources towards marketing goals, which is the

vital tool in being competitive in the area. Marketing would include promoting the incentives that

Huntsville pertains to various businesses. Allocation of resources towards marketing could contribute

towards the reformation of current websites to update the resources that are presently missing.

The economic development goal does not budget for an official economic development officer

whom would facilitate the goal and planning process within various organizations in the community. The

additional cost of this new position would be greatly offset by the revenue generated from new

businesses being drawn into Huntsville. Instead of budgeting for a salary of an economic officer, an

economic development website could be implements and overseen by members of the future economic

development council.

Finally, the infrastructure budget could consider factoring in the expense of clearing sites to be

ready for businesses to relocate. This gives predictability to incoming businesses and allows for prompt

relocation and expansion.

After researching the prison towns and the current economic standpoint of Huntsville, the

following strategies are needed helping Huntsville develop economically. A reformation of City websites

( the Chamber and the City), cohesiveness among leaders in the community, an active economic

development council who set short term goals and strategies, establishment of target industries and an

increased amount of resources allocated to marketing.

The three relatively cost free ideas that have potential to be implemented are: The new slogan, the

tourism all access pass and the reformation of current websites. Huntsville should not ignore the fact it

has a prison yet work in consideration of the facility, utilizing the knowledge of prison towns to develop

more strategies to increase the growth and prosperity of Huntsville in addition to capitalizing on the

invaluable cultural, historical, natural, and educational assets that it pertains.