Lawmakers compromise on how to spend spill funds
MONTGOMERY, Ala. — 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 on a vote of 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,” Senate President Pro Tem Del Marsh, R-Anniston, said.
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 emphasize that it is 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.