BOISE, Idaho — The Idaho Land Board on Tuesday decided to look into building a prison as a possible investment with $130 million it has accumulated through the sale of commercial and residential properties.
The five-member board that includes Republican Gov. Brad Little and four other statewide elected officials voted 5-0 to direct the Idaho Department of Lands to look into the feasibility of building the prison and leasing it to the state.
Attorney General Lawrence Wasden pitched the idea and said the prison could provide a steady stream of income.
The Land Board manages nearly 4,000 square miles Idaho received at statehood to benefit mainly public schools. The board is constitutionally mandated to manage that land, as well as market investments, currently worth about $2.5 billion, to get the greatest long-term return. The Land Board last fiscal year generated about $85 million for distribution.
In recent years the board has been selling commercial and residential properties amid concerns the state with commercial properties was competing with private businesses and that it wasn't getting a fair return on its residential properties.
The result has been a financial windfall with about $240 million anticipated when all the sales are final. The balance is currently about $130 million. But the money must be spent before it automatically transfers into another fund that is not available for land or building purchases.
A financial advisor recommended the board reinvest the $240 million in timberland and farmland as a way to buffer the Land Board's other investments tied to the stock market.
The Land Board has followed that advice but come under fire from timber companies who complain they can't compete with the state in purchasing timberland. County commissioners have also expressed dismay that they lose property tax income when the state buys land.
Simultaneously, Idaho has a shortage of prison beds, paying to house hundreds of inmates out of state. Idaho lawmakers and Little have considered building a prison but shied away because of the expense. There are also humanitarian concerns with housing inmates far from loved ones who remain in Idaho.
Wasden's idea for the Land Board to build a prison as an investment could possibly solve a lot of those problems.
"It provides a stable level of income, which is what the timber has done for us in our portfolio," Wasden said. "It's also what the (residential) cottage sites did."
Little liked the idea. "Actually, I was a little disappointed that I didn't think of it," he said.
It's not clear when the Idaho Department of Lands will return to the board with an analysis.
