Surprise, Surprise: AL State Gov Took Most Of 1 Billion BP Settlement For Medicaid, Debt Payments

[hatrack]

A little over six years ago, the BP Deepwater Horizon spill devastated the Gulf Coast, sending more than 200 million gallons of oil into the Gulf of Mexico. Tourism in many of the cities and towns along Alabama’s shoreline all but crumbled, and many there say without tourism, there is no economy. Over the years, BP issued hundreds of millions of dollars in claims to fishermen, shop owners and city governments to try to make things right.

Most recently, BP gave the state of Alabama a $1 billion settlement to help with the state’s recovery. But people in the region are none too happy with the way the state decided to spend it.

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BP started pumping money into marketing campaigns, paying out claims, putting boat owners to work. And over time, people came back to the beaches. But Alabama lawmakers took the state’s latest settlement from BP — $1 billion — and decided to use most of it to help fund Medicaid and pay off state debt.

"That was a difficult pill to swallow," Robert Craft, the mayor of Gulf Shores, said. He said putting that money into the state’s General Fund means less money for projects within 25 miles of the coastal zone, as the state had originally planned. "And the projects that we’d planned to do, the regional recovery projects, a lot of them are no longer going to be on the table."

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This group approving projects is headed by Gov. Robert Bentley, who has been criticized for his use of earlier BP settlements. One example: He spent $1.8 million to renovate a dilapidated governor’s beach mansion. He said he’ll use it to entertain visitors to boost economic development. Same for using the BP money to pay off state debts and to help fill other budget holes.

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http://www.marketplace.org/2016/11/29/world/alabama-gulf-coast-residents-upset-states-use-bp-settlement-funds

[orwell]

1. Roll Tide...

...I guess Bentley wanted to spruce up the beach house to entertain his mistress...