Plan to spend oil spill money

Published 8:52 pm Wednesday, September 7, 2016

MONTGOMERY (AP) — Alabama lawmakers on Wednesday approved a compromise plan to spend oil spill settlement funds, breaking through days of legislative deadlock that had divided lawmakers along geographic and policy lines.

The plan, drafted in a conference committee earlier in the day, was a middle ground between south Alabama lawmakers who wanted money for road projects in coastal counties and others who said the biggest need was in the state’s cash-strapped Medicaid program. The House of Representatives approved the conference committee’s plan 87-9. Senate approval followed by a 22-8 vote.

“This is possibly, at this point in time, the best that we are going to be able to do. There was compromise on all sides,” Senate President Pro Tem Del Marsh, R-Anniston, said.

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The bill now moves to Gov. Robert Bentley for his signature.

Alabama is set to receive $850 million in compensation for economic damages from the largest offshore oil spill in U.S. history. State lawmakers plan to take a smaller amount up front — a projected $640 million — by doing a bond issue.

The compromise plan approved Wednesday would steer $120 million to south Alabama road projects and $120 million to Medicaid over the next two years. It would also use $400 million to repay money borrowed from other state coffers during past budget shortfalls.

Rep. Steve Clouse, chairman of the House general fund budget committee, said the bill provides a temporary fix for next year’s Medicaid budget.

“I want to emphasis that temporary because we have not solved the problem in Medicaid. It is a major problem,” Clouse said.

The House had initially approved a bill that would have steered $191 million to road projects in Mobile and Baldwin counties. South Alabama lawmakers had fought to keep some money for the coast in the compromise plan.

“Mobile and Baldwin counties had suffered the consequences from the BP oil spill back in 2010. We felt it was only fair to get our fair share to take back to Mobile and Baldwin counties,” Sen. Vivian Figures, D-Mobile, said.

Bentley brought lawmakers into special session to debate a proposed state lottery and other ways to try to get additional money to the state’s perpetually cash-strapped Medicaid program. With the lottery bill dead for the special session, the oil spill settlement bill took center stage in the final days of the special session.

Marsh said lawmakers risked getting no additional money for Medicaid if they ended the special session without approving the bill.

Lawmakers adjourned the special session shortly after approving the bill.