WHAT A DEAL: Alabama pays $240 million in order to borrow $610 million…

You have seen these commercials…

Alabama apparently thinks this is a great idea

Alabama is expected to receive about $610 million from a bond issue backed by $850 million in oil spill settlement payments from BP under a plan approved by a new bond authority today.

The Alabama Economic Settlement Authority approved issuing the bonds as called for by the Legislature during the special session in September.

State officials had initially hoped to get about $640 million but an increase in interest rates after the Nov. 8 election means the state will get less, Finance Director Clinton Carter said.

The bond proceeds will be used to repay $400 million to the Alabama Trust Fund for transfers used to prop up the state budget over about the last seven years.

Another $120 million will go to the Alabama Medicaid Agency, including $15 million this year and $105 million next year.

Look, there is a reason these ads run during “Maury” and “Jerry Springer, it’s not because they are targeting smart people.

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