Our lawmakers are saying by the law they passed yesterday that they will be using $400 million of BP settlement funds to pay back money owed to the Alabama Trust Fund. This is a blatant lie because the debt owed will be reduced by only $310 million at the end of FY2019.
Per the old law (Peoples Trust Act), by the end of FY2019, $105 million of the money borrowed from the Alabama Trust Fund was to have been repaid.
Because a total of $15 million was repaid in 2014 and 2015, there was $90 million yet to be paid to meet the FY2019 requirement.
The new law, HB36, cancels the $90 million in required payments for FY2016 to FY2019 and makes only a 2017 payment of $238 million. Accordingly, the net reduction of debt above current law is only $148 million (238-90 = 148).
HB36 also pays off the $162 borrowed from the ATF in 2009 by Democrats (the Rainy Day Account).
So by the new law the net reduction in debt by the end of FY2019 is only $310 million (162+148 = 310).
This $310 million reduction in debt is $90 million less than the $400 million lawmakers say they are doing.
Republican leaders are lying and lawmakers who voted for HB36 voted for a lie.
Do not trust them and do not vote for them ever again.
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