MONTGOMERY – Gov. Robert Bentley signed a compromise bill on Thursday to use Alabama’s BP settlement funds to pay off a portion of the state’s debt, fund Medicaid and improve roads in Baldwin and Mobile Counties.
The Alabama Legislature gave final approval to the bill Wednesday night after lawmakers agreed to a compromise on how to use the money.
The bill, which was a major focus of the special session, has seen some changes since passing the Alabama House on Aug. 17, but Rep. Randall Shedd, R-Fairview said, “I am extremely happy with the compromise BP bill.”
Of the $1 billion BP settlement monies, the bill calls for the following:
- $162 million will go to repay the General Fund Rainy Day Account in the Alabama Trust Fund for money borrowed in 2009 to cover a budget shortfall.
- $238 million will be put into the Alabama Trust Fund for money transferred from 2013-2015 to support the state’s budget.
- $120 million will go to the Alabama Medicaid Agency- $15 million in fiscal year 2017 and $105 million in fiscal year 2018.
- $120 million will be directed to Mobile and Baldwin counties for specific road projects, including U.S. 98 in Mobile County.
Said Shedd, “The bill that passed pretty much solves Medicaid for the next two years, which is important because this puts us in a position many of us in the House have been pushing for, to implement true cost-containment to get the spiraling Medicaid costs under control.
“We now have in place a mechanism to do forensic audits at Medicaid so we can find out what is really going on. It is crucial to our healthcare system, but if we don't get Medicaid costs under control, the state General Fund will just be the Medicaid Fund,” he said.
“So, to get Medicaid taken care of for two years while we have a forensic accounting of Medicaid will be good long-term.”
According to Cullman Regional Medical Center’s Director of Marketing & Public Relations, Lindsey Dossey, “Alabama’s Medicaid program is much more than a health insurance program. It is a vital part of the state’s health care delivery system and supports the infrastructure of hospitals, physicians, nursing homes and pharmacies. In fact, Alabama Medicaid covers the health care needs of nearly 1 million Alabamians, with the majority of those covered including children and seniors.
“Medicaid in Alabama is substantially underfunded, which creates a problem for citizens who need access to care,” continued Dossey. “So any additional funding to help cover costs associated with caring for Medicaid patients is good news since Medicaid reimbursement for services doesn’t even cover the hospital’s costs of providing care.”
The final bill reduced the amount of funding to coastal counties for highway projects from $191 to $120 million but the requirement to fund improvements to Highway 98, the roadway deemed “Bloody 98” because of its high accident rate, in Mobile County is still in it.
I think without some funding for highway projects for coastal counties, the BP bill would not have passed,” said Shedd. “This influx of $120 million to highways helps Cullman County because it is money into the highway department that had been declining in revenue. Mobile's Highway 98 is ahead of our Highway 157 on the list, so naturally that helps us.” The completion of the 98 project, says Shedd, will send 157 to the top of the list for funding. The Highway 157 project includes the completion of the widening, etc. between Highway 69 and Highway 31, including the infamous “Bridge to Nowhere.”
And what about the lottery, which was the reason for the special session to begin with?
“I am not at all surprised that lottery legislation failed,” said Shedd. “A special session just doesn't give enough time for an issue like that. The current legislature doesn't like to be pressured with a deadline and have to vote on a last-minute, ‘Nancy Pelosi’ tactic of not having enough time to fully vet the language, and that is what we had with the deadline to get it on the ballot in November.”
He continued, “With all the gambling interests in Alabama, I'm not sure a simple lottery bill will pass any time in the near future.”
Shedd had nothing but praise for the new speaker of the house. “I was extremely pleased with way our new Speaker of the House Mac McCutcheon provided good leadership in this session. His calm demeanor helped get the BP legislation passed,” he said.
“Speaker McCutcheon announced his first day that it is a new day in the Alabama House of Representatives and the days of an imperial speaker are over. The atmosphere in the House is pleasant with a feeling that our new Speaker will be fair to everyone and that we have an opportunity to truly address Alabama's problems. There is a feeling of optimism in the House now.”
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