SUMMARY OF THE ALABAMA PRISON TRANSFORMATION INITIATIVE ACT B Provides for construction of 4 modern prison facilities (3 male, 1 female) N Purpose is (a) to reduce overcrowding (b) to improve safety conditions (c) to allow for additional inmate re-entry programs and (d) to improve operational practices and procedures w . Allows for issuance of up to $ 800 million bonds for up to 30 years by the Alabama Corrections Institutions Finance Authority (ACIFA); the debt service on these bonds is to be paid from savings within the Department of Corrections’ annual budget 4, Requires ACIFA to report any demolition or disposal plans to the Joint Legislative Prison Committee w Pledges as security to this bond issue the State’s one mill property tax of Construction should begin in Fall 2017 (or early 2018) and should be completed in approximately 3 yearsOperational Savings Generated by the Alabama Prison Initiative Personnel cost reduction: The majority of Alabame’s prisons were built over 30 years ago and require intensive manpower to properly monitor and supervise inmates. New state of the art regional prisons equipped with camera systems and properly designed to manage varying custody levels of inmates, require much smaller staffs. Coupled with manpower savings achieved through consolidation, the ADOC anticipates being able to operate the new facilities with a slightly smaller staffs than we currently have. The ADOC currently has 65% of its required security staffing. Security staffing models used to operate newly designed facilities would not only resolve our critical shortage of correctional officers but would allow us to actually reduce this staff by roughly 5% (160 positions). Staff reductions will be achieved through attrition. Consolidation of prisons allows for consolidation of support functions. Fewer staff will be needed for administration, business office operations, facility maintenance, inmate meal preparation, etc. We anticipate a reduction of roughly 20% (190 positions). Staff reductions will be achieved through attrition, Due to our extreme security staff shortages we depend heavily on overtime to fill a number of our critical security posts. In addition, , we operate on 12 hour shifts which require the use of overtime as a consequence of the long week (48 hours) during each pay period. Overtime cost currently runs $32 million in salary and benefits. The reduced security staffing requirements associated with state of the art regional prisons will allow ADOC to eliminate much of the need for overtime. We anticipate a 66% reduction. Inmate Medical Contract: ADOC currently contracts with CORIZON and MHM Correctional Services to provide inmate healthcare. Annual cost for FY16 is expected to approximate $101 million. Consolidation of 14 major facilities into 4 regional facilities will generate savings based on streamlining access and delivery of healthcare. We anticipate a cost reduction of roughly 10% associated with the consolidation of medical services. All Other: Insurance, custodial, supplies, inmate food, transportation, elimination of leased beds, utilities, fuel, etc, are expected to net modest savings of $1.6 million.Description Updated Amount Financed $800.0 Annual Debt Payment : $50.0 Savings: Staff Attrition - Security (6%) 160@50,000 80 Staff Attrition - Support (22%) 190 @ $50,000 avg, 95 Overtime Pay 17.0 Retirement & FICA @ 22.22% 38 208 Medical Contract to4 Insurance, Maintenance, Supplies, Rentals, Transportation, Fuel, Leased Beds, Utilities, etc. 16 Total Savings $50.0