Alabama lawmakers hold ADOC contracts over prison costs, construction concerns

Two Alabama Department of Corrections legal contracts were placed on hold during a recent legislative contract review meeting as lawmakers sought answers about the department's prison construction projects, the financial consequences of ongoing litigation and plans for transitioning to a new administration.

The first contract, a $200,000 agreement with Alina Fountain of Maynard Nexsen, would provide consulting services related to Title 39, Alabama's public works law. The agreement is renewable annually, and Fountain's rates have increased from previous contracts.

Fountain currently advises the department on the construction of the Elmore County correctional facility and would expand her consulting work to include both planned prison facilities. However, lawmakers questioned what specific work Fountain was performing, particularly given concerns about the department's construction projects.

When asked about the progress of the Elmore County facility, Johnna Ingalls, who represented the contract for the ADOC at the contract review committee meeting, acknowledged that progress was slow but could not provide an estimated completion date or details about the project's financing.

Rep. Chris England, D-Tuscaloosa, also questioned whether the department had developed plans for transitioning from one administration to the next and whether the next planned prison project would be competitively bid.

Ingalls said she was not prepared to discuss those issues but would seek additional information from the department.

The proposed contract drew additional scrutiny when Ingalls said Fountain had billed less than $20,000 for consulting services during fiscal years 2025 and 2026 combined.

England questioned the need for a $200,000 agreement when the department had spent relatively little on the existing consulting arrangement.

The contract was placed on hold by multiple lawmakers pending additional information about the construction projects and the department's plans.

The second contract, with Karen Rea of Correctional Improvement and Sustainability Consultant LLC, would provide services as a member of the external monitoring team appointed by U.S. District Judge Myron Thompson in the Braggs v. Dunn litigation.

The lawsuit concerns unconstitutional conditions in Alabama prisons related to the treatment of incarcerated people with serious mental health needs. The external monitoring team will evaluate the department's compliance with court-ordered requirements.

Ingalls said monitoring is scheduled to begin next year and that Rea was selected by Thompson.

England used the discussion to press the department for estimates of the potential financial consequences of the lawsuit, questioning how much the state could have spent to settle the case compared with the projected cost of complying with the court's eventual remedial requirements.

England said lawmakers had previously been told that the department did not have an estimate of those costs, despite presentations reportedly made to state officials about potential settlement expenses and the financial consequences of losing the litigation.

The lawmaker questioned whether defending the lawsuit had been financially beneficial to the state, particularly given the legal expenses already incurred.

“Our attorneys told us it was best to, you know, to defend this case versus settling it. And we're obviously gonna pay them, I think, it was probably about $40 million for defending us in that case. Then we lose it,” said England.

He said the state now faces the possibility of substantial additional costs through the General Fund to meet whatever requirements the federal court ultimately imposes.

England questioned whether those obligations could reach $50 million to $75 million annually, particularly if the court requires additional facilities or programming space to address the needs of incarcerated people with mental health conditions.

“Because, I mean, we've got a budget. You know, we've got budgets coming up, and, you know, whatever it's gonna cost us could eventually get to the point where it might be prohibitively expensive,” said England.

Ingalls said she did not have the requested estimates with her but would take the questions back to ADOC.

The remedial trial phase has been pushed to March, she said, while the parties continue mediation every Friday in an effort to resolve the case.

She said additional members could be added to the external monitoring team as monitoring begins, potentially resulting in more contracts, but Rea’s agreement was the last currently planned appointment.

England also questioned how the department intends to manage the transition to a new administration as it navigates ongoing litigation and major construction projects.

He pointed to uncertainty surrounding the completion of the Elmore County facility, the timeline for beginning construction in Escambia County and changes to the planned capacity of the Escambia County prison, which he said had been reduced from 4,000 beds to 1,600.

Those changes could affect the department's plans for moving incarcerated people out of existing facilities and determining which older prisons can eventually close.

England said the next governor will inherit significant financial and operational challenges involving the prison system.

“Our new governor walks into the office, he's gonna be handed a billion-dollar problem as soon as he walks in,” said England.

He said lawmakers want to see how the department plans to transfer responsibility for ongoing projects, litigation and operational issues to the incoming administration.

Ingalls said she would seek information about the transition plan.

Both contracts were placed on hold pending additional information.