State will need to borrow another $500 million to finish the megaprisons

February 5, 2025 – In 2021 state lawmakers were told that building two megaprisons would the taxpayers cost $854 million. That number was very controversial at the time; but time has shown that number to have been overly optimistic. Now the State Legislature is being asked to consider giving the state an additional $500 million in bonding authority in order to finish the two megaprisons being built in Elmore and Escambia Counties.

On Wednesday, Senator Greg Albritton (R-Atmore) informed the Senate Finance and Taxation General Fund Committee that he will likely be bringing the bill for the bond issue in next week's meeting of the committee.

"The estimates were slightly off," said Albritton who chairs the Committee. Albritton told the members of the Committee that the Governor Kay Ivey Correctional Complex in Elmore County alone was going to cost the state well over a $billion by itself.

That facility, which will house over 4,000 inmates, will open at some point in 2026.

"We have the money on hand for the Elmore County facility and we have about 60% of the money for the Escambia facility," Albritton said.

Albritton, who represents Escambia and Baldwin Counties, said that he hopes that the Alabama Department of Corrections (ADOC) can begin construction of the Escambia County in the next 6 to 8 months.

Chairman Albritton said that his bill would, "Authorize an additional $500 million in bonds to complete both prisons."

Senator Linda Coleman-Madison (D-Birmingham) asked when the bond issue would be brought to market.

"There is no time frame," answered Albritton. "That gives the state finance officer the flexibility to move in as the markets allow."

"We have the money to build all of Elmore and begin work on Escambia," without the bond issue explained Chairman Albritton. "The construction (for one) has taken about 36 months."

Senator Arthur Orr (R-Decatur) asked, "Because this is for a prison will we have to pay a premium?" (higher interest rates)

"No, the state finance director has been quite creative in moving on those lines," said Albritton.

"We are not making additional beds with these facilities we are just replacing existing capacity as those facilities deteriorate," Albritton said.

Sen. Robert Stewart (D-Selma) asked how the prisons to be closed will be determined.

"The original 2021 legislation established a committee for that," Albritton answered. "They have not met. There is no need for the committee to meet at this point."

Albritton said that Holman prison in Atmore is already largely empty and the next prison that would probably close is Fountain which is also in Atmore.

Lawmakers were told earlier in the day that state general fund revenues moving forward are likely to be flat or even decline slightly as revenues coming into the general fund are dramatically slowing.

Alabama has an arcane budgeting system where most of the moneys are earmarked and there are two budgets: the state general fund (SGF). The SGF funds Medicaid, prisons, public health, and most other non-education related state agencies other than roads and bridges. Schools, universities, colleges, and other education related agencies are funded in the education trust fund (ETF).

State Finance Officer Bill Poole told the budget committees that the governor is requesting $$826.7 million for the Alabama Department of Corrections.