I am not sure if it is happening all over, but two correctional facilities have closen recently in my area. Even the employees are confused. We are being told that the State keeps letting out inmates early to try to be the leading state in the nation to have the lowest inmate population so they can close Facilities down and it looks like they’re saving money. But it’s weird our state is still in the deficit by how many billions of dollars? Where is all this extra money going? Is there a different more sensible reason they are closing these places down?
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Theoretically it could be a money-saving move, if prisoners went to private prisons which are a lot cheaper. That said, government is usually the last to outsource for economic reasons. (And with prisons there are good reasons that they shouldn't be privatized, despite the prison worker unions obviously bad faith tactics that impose terrible costs.)
Given that's it's NY, it's probably just to incentivize crime.