House Approves Oil Spill Settlement Split

The Alabama House of Representatives has approved a bill to use the state’s oil spill settlement funds to pay debts and build roads in south Alabama.

Representatives approved the bill on an 88-10 vote

Ways and Means Committee Chairman Steve Clouse said paying off debt early could help avoid Medicaid cuts next year. He said it would provide most of the additional $85 million needed by Medicaid in the next fiscal year

Alabama will get $1 billion over the next 18 years in settlement funds. Under the bill, the state would take a smaller amount up front – a projected $640 million- by doing a bond issue. About $450 million would be used for debt repayment and $190 million for coastal counties’ roads.

The bill now moves to the Alabama Senate.

The House approved a similar plan in April but the bill stalled as lawmakers feuded over how to use the money.

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