Senate bill to expand prison bonding authority advances amid cost-overrun questions

Senate Bill 60, presented by Senator Albritton, would expand the state's bonding authority related to correctional facility construction to allow completion of projects authorized in 2021 after construction cost increases.

Senator Albritton told the committee the state originally authorized $785 million in 2021 to build two replacement prisons. When the project went to market this July the state sold $500 million in bonds and has used additional state and federal funds (including ARPA and supplemental state sources) to move construction forward. The senator said Elmore prison’s total cost will be about $1,086,000,000 and that the current financing picture leaves room only to finish Elmore and approximately 60 percent of the Escambia project without additional borrowing authority.

Albritton said SB 60 gives the financing authority additional flexibility to borrow beyond previously authorized amounts if needed to complete the projects; he described it as a safeguard and said it does not compel the authority or governor to borrow. Members asked about budget effects and revenue sources. Representative Witt, drawing on his banking background, said he disliked borrowing but urged the senator to seek revenue solutions in the Senate. President Mahoney asked for historical detail; Albritton said some of the cost growth reflected higher concrete and labor costs and other unforeseen issues. Albritton said the state used federal ARPA dollars and leftover supplemental funds in addition to bond proceeds to capture needed funding so far.

The committee voted to give SB 60 a favorable report.

Ending: The bill advances with the committee's favorable report; members requested additional project-level documentation (cost breakdowns, change orders) from the Department of Corrections and finance staff.