In the late 20th century, the Mississippi Department of Corrections (MDOC) began to contract with private companies to build and operate prisons in the state to meet rising demand, in part due to changes in sentencing guidelines. The first was opened in 1996. "By 2013, the system had four private prisons and the nation's second-highest incarceration rate." (Note:
Tallahatchie County Correctional Facility was also still open in 2013, but it did not hold any Mississippi prisoners. CCA operated the facility under contracts to other states.) Counties and towns had vied to attract the private prisons, in hopes of stimulating economic development and providing jobs in rural areas.
Cornell Companies expanded the
Walnut Grove Youth Correctional Facility (WGYCF), which originally opened in March 2001 under a different operator. It was located in
unincorporated Leake County, Mississippi, on land owned by the Walnut Grove Development Authority; this entity was administered by the town of Walnut Grove. The prison was designed as an all-male, youth correctional facility for all levels of custody, with an initial capacity of 321 prisoners. Within several years, the state agreed to a contract to expand the facility and it housed more than 1,000 prisoners by 2009. In total, including the costs of its expansions, the Walnut Grove Correctional facility was the most costly private prison in the state, according to the
Jackson Free Press. As of 2006 the prison housed 950 prisoners ages 12 to 21. The 200 prison guard jobs helped employ townspeople who had been laid off by closure of a local garment manufacturing plant. Mental and medical health services were provided by Health Assurance, and additional contractors provided food services, etc. In October 2010,
United States Department of Justice officials informed
Governor of Mississippi Haley Barbour that the department had started a civil rights investigation concerning the prison, in relation to its treatment of prisoners, to assess whether constitutional standards of prisoner safety and humane treatment were being maintained. In November 2010, plaintiffs represented by the
Southern Poverty Law Center and the
ACLU National Prison Project filed a federal class-action lawsuit against GEO (which had acquired Cornell and taken over its contracts in Mississippi and elsewhere) and MDOC, saying that the prison authorities allowed abuses and negligence to occur at WGYCF. By 2011 prisoners outnumbered Walnut Grove city residents by a 2:1 ratio. Two thirds of the prisoners had been convicted of non-violent offenses. ==DOJ report - March 2012==