Operational Savings Generated by the Alabama Prison Transformation Initiative

Personnel cost savings through reduction in overtime and economies of scale:

The majority of Alabamas 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 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 percent of its needed 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 percent (160 positions). Staff reductions will be achieved
through attrition. The average cost per employee, including salary and benefits, is roughly $50,000. This
will generate a savings of roughly $8 million.
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 percent (190 positions). Staff reductions will be achieved through
attrition. With an average cost per employee of $50,000, including salary and benefits, this will generate
roughly $9.5 million in savings.
Due to our security staff shortages we depend heavily on overtime to fill a number of our 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 percent, or roughly $21 million, reduction.
Staffing models for a newly constructed correctional facility with 4,000 beds requires an inmate to officer
ratio of approximately 14.5 to 1 (275 officers). ADOCs current staffing model is an officer-to-inmate
ration of 11.4 to 1 (350 officers). However, the current model is supplemented with overtime, effectively
adding 85 full-time equivalents. With overtime, the current effective officer-to-inmate ration is 9.2 to 1
(435 officers).
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 3
regional facilities will generate savings based on streamlining access and delivery of healthcare. This will
result in cost reduction of roughly 10 percent, or $10.1 million, associated with the consolidation of
medical services.
Under the current medical contract, there are 500 full-time equivalent (FTE) contract employees supporting
28 facilities.
Consolidation of 13 major facilities (currently requiring 325 contract full-time employees) into 3 regional
facilities (requires 80 contract full-time employees) provides a reduction of 85 contract employees (17
percent of the overall 500 full-time employees in the contract).
Miscellaneous:
Insurance, custodial, supplies, inmate food, transportation, elimination of leased beds, utilities, fuel,
etc., are expected to reduce costs by $1.6 million.