Alabama lawmakers reached agreement Wednesday on a plan for spending BP settlement money that will give $120 million to Medicaid over the next two years, $120 million to road projects near the coast and $400 million to pay back state debt. Legislators adjourned their special session after reaching that agreement and will return to Montgomery in February. During the brief session called mainly to consider ways to fund Medicaid, 98 bills were introduced, most of which died for lack of action. Status of select bills follows. For more information about the bills, see the state’s legislative site.
The Legislature is going into session Aug. 15 to consider Gov. Robert Bentley’s lottery proposal to raise money for the General Fund, but the plan is not a guaranteed quick fix for either of the state’s biggest budget dilemmas.
Medicaid and prisons together make up more than 60 percent of the state’s General Fund spending, according to budget documents. Both are in need of an infusion of cash, and the Legislature adjourned its regular session without making significant changes to funding for either the Medicaid Agency or the Department of Corrections.
The governor hasn’t released details of his lottery plan. He has said he believed it would raise $225 million a year, and he is proposing to allocate profits to the General Fund, which would let legislators determine each year where the money is most needed. Read more.