House Approves Split of BP Oil Spill Settlement Money

MONTGOMERY, Ala. (AP) – The Alabama House of Representatives has approved a split of settlement money from the 2010 oil spill, under a plan that could also stave off Medicaid cuts next year.

Representatives approved the compromise bill Thursday on an 82-12 vote. It has two days to pass the Alabama Senate.

Instead of $1 billion paid out over 18 years, the Alabama general fund would get an estimated $639 million up front through a bond issue.

The state would use $450 million for debt payment and $191 million for road projects in coastal counties.

Budget chairman Steve Clouse said paying debts off early would provide $70 million of the $85 million Medicaid needs to avoid service cuts.

The bill was a compromise between lawmakers who wanted to pay debt and south Alabama legislators.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s