AL's new prison plan could come with hefty price tag - WSFA.com Montgomery Alabama news.

AL's new prison plan could come with hefty price tag

(Source: WSFA 12 News file photo) (Source: WSFA 12 News file photo)
MONTGOMERY, AL (WSFA) -

Alabama's new prison plan could end up costing the state more than$1.3 billion. The plan, which passed out of the Senate last week, would build three prisons, two of which would need to be built by local groups.

Those groups would sign a 30-year lease to own agreement with the state for up to $13.5 million a year. Once two local groups are on board the state could then spend $325 million in a bond to build the last prison, leaving $100 million left over for renovations.

The local prisons could cost the state $810 million, according to Auburn Montgomery economist Keivan Deravi, and if you include interest, the bond would cost the state $530 million.

The Department of Corrections says they can afford the price tag. According to their projections, under the plan Corrections would save $50 million a year, which would be a total of $1.5 billion in savings over 30 years.

Copyright 2017 WSFA 12 News. All rights reserved.

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