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Senate committee discusses authorizing $500 million in bonds for two facilities; no vote taken
Summary
Committee members discussed authorizing an additional $500 million in bonds to complete construction of two facilities and to preserve flexibility on timing of bond sales; committee carried the discussion over and moved on to other business without taking a vote.
Members of a Senate committee discussed authorizing an additional $500,000,000 in bonds to complete construction of two facilities and agreed to carry the matter over to a future meeting rather than vote on it. Committee members and the chair said the authorization would give officials flexibility to sell debt when market conditions are favorable.
An unnamed committee member summarized the plan as authorizing an additional $500,000,000 in bonds “to be able to complete the construction of both facilities completely.” The speaker said the authorization is not an immediate requirement but would remove cost uncertainty by ensuring funds are available when needed.
Committee members asked about timing and market risk. One senator asked if there was a time frame for selling the bonds; the chair replied there was none, saying the absence of a deadline gives the finance director and state officials flexibility to carry the bonds to market when conditions are appropriate. “It gives us that flexibility,” the chair said, noting the committee was not under pressure to act immediately.
Members also discussed the status of several correctional facilities. The committee record shows the committee is 60% on Escambia (noted as where a shortfall exists), and the speaker said the funds are intended to replace deteriorated beds rather than create new capacity. The transcript noted Holman is mostly closed and that the Fountain facility at Atmore is likely to be considered for closure and demolition; the speaker said decisions about demolition or reconstruction must be made by a committee established by a 2021 law.
When asked whether there would be a premium on corrections-related bonds, a senator noted finance directors have found creative financing options and the committee deliberately did not set strict constraints in the authorization. The chair said the discussion would be brought back in the next meeting.
No formal vote on the bond authorization appears in the provided transcript. The chair said the item would be carried over and the committee moved on to SB 86.
