GRAYSON COUNTY, TX -- The number of state inmates has dropped in Texas, and while that might sound like good news to some, that's not the case for several Texas counties.

Texas prison officials say the decrease in inmates has led them to cancel hundreds of contracts to house state convicts in county jails. Texas prison officials plan to cancel contracts to house up to 1,900 convicts in county lockups .This means less revenue for county and private jails, and it also means Grayson County might not be going private after all.

"What we have been hearing for years now is that there isn't enough room and the state is going out and renting beds from county jails," said Grayson County Sheriff Keith Gary.

What the sheriff heard Monday was different. According to the Associated Press, a decrease in state inmates has freed plenty of room in state prisons.

"Southwest Correctional that wants to build the jail in our county is counting on those state prisoners and federal prisoners to fill up the jails which would make it operational,” said Sheriff Gary.

“These private providers in the state have to have some of those people, or they can't make their plan work.”

"I would think if Southwestern Correctional can't do it, I doubt any other private company can do it right now," said Sheriff Gary.

"If we can't make this plan work, it’s probably time to start looking to build something ourselves."

Sheriff Gary says he will talk with the county commissioners and Judge Drue Bynum to see if this new information will affect their decision whether or not to privatize the jail. County officials are scheduled to meet with the Southwest Correctional to make a decision on July 13th.