Cornerstone Programs, Inc., the private corrections company charged with running the Natrona County Juvenile Detention Center, may have to terminate its yet-to-be-signed contract with the county because of financial difficulties, the company's CEO Joseph Newman told county commissioners Thursday.

"The drain has been significant, to the point where it has had a huge impact on our cash flow, and, quite frankly, if the conditions continue, we won't be able to support the operation," he said.

Low inmate population has caused the relatively small business to lose large sums of money over about a six-month period, something the company can't sustain for long, he said.

For Cornerstone to break even on operations, the JDC must hold an average of 25 juveniles per day. The average number of inmates over the past month has been 18, with a one-day high of 24 inmates. In July, the company lost about $40,000 in operational costs alone, and expects that August will see about a $35,000 loss.

At the current rate of loss, Newman said, the company can't afford to run the facility for more than another month or so.

While an exact explanation for the decrease in population isn't available, Gary Miller, chief operating officer for Cornerstone, said the Department of Family Services is placing fewer than half the number of juveniles in the facility than it had over the last five years.

"There does seem to be a reluctance on their part to refer kids," Miller said.

Due to the late meeting time, DFS couldn't be reached Thursday evening.

Some improvements to the facility, including an updated fire detection system and new camera security equipment, may encourage DFS to send more juveniles to the county, Miller said.

Commission Chairman Rob Hendry defended the facility, noting that once improvements are made, inmates are relatively safe within the walls of the JDC.

"Maybe that facility isn't the best it could be in the whole world, but it's not dangerous," he said.

In spite of inadequacies with the current detention facility, located on the third floor of the county courthouse, Newman said Cornerstone has improved program management and properly trained an appropriate number of workers since the company took over for Frontier Corrections in March.

And while lowering the ratio of workers to inmates or cutting back on programs would help the company save money each month, "that's just not something we're willing to compromise on," Newman said.

Sheriff Mark Benton agreed that Cornerstone's kids-over-money policy is best, adding that "they're running a good operation. I'm able to sleep at night and I appreciate that."

On the bright side, Newman said, while smaller populations in the JDC could mean Cornerstone has to pull out, that also points to fewer detained juveniles in the county and around the state.

"In reality, that's a good thing," he said. "Kids aren't getting locked up. And if kids don't belong in detention, quite frankly, from my perspective they shouldn't be there."

The commission said it will meet with DFS and Cornerstone, and may look into temporarily helping the company pay for some of the population-related losses.

Contact reporter Megan Lee at (307) 266-0589 or megan.lee@trib.com