/$41 million from BP included in Coast projects

$41 million from BP included in Coast projects

Representative Herb Frierson (R-Poplarville), chairman of the House Appropriations Committee, stated that lawmakers voted to allocate $41 million from the expected payout to fund several projects in the three coastal counties most affected by the 2010 disaster. Frierson stated that he had to beg for the money. “It was a huge reluctance from the leadership to part with that money but I really, really wanted it to get done.” The BP money will go into the fiscal year 2017 budget to offset some of those cuts. It will fund projects such as a diabetes research center, Pascagoula Redevelopment Authority, scholarships, and Pearl River Community College’s purchase of land for a Hancock County college. Other expenditures were offset by $41 million of anticipated BP funds. This was crucial following lower revenue estimates that were released late last week, which forced reductions to a number state agencies’ appropriations. Lt. Governor. Tate Reeves has repeatedly stated that he does not support using one-time money to pay recurring expenses. Frierson stated that the Fiscal Year 2017 appropriations for coast projects will not be recurring expenses on future budgets. Officials said that the check from BP will arrive in June. BP settled a lawsuit in 2015 with Mississippi and other Gulf States after a 2010 oil leakage that effected more than 130m gallons of oil. The agreement granted Mississippi $1.5 billion over a period of 17 years. The state will receive $40 million per year in payments between 2019-2033, after receiving a $150 million check from BP. Before the settlement was reached BP had already paid $659 million to the state, which was distributed among state entities for cleanup and recovery. The question of what to do with $109 million remaining from the first check is still open. Gov. Phil Bryant stated Wednesday in an interview that he would leave the decision up to the Legislature. Bryant also hinted at the possibility for a special legislative session later in the year to determine how the money should be spent. Bryant stated, “I believe it’s prudent to look at the possibility of spending that money on Mississippi Gulf Coast.” “I think it would be a good idea, particularly to spend it on tourism down there.” Both parties of the Gulf Coast Legislature have stated their desire to keep as much BP money as possible in the coastal counties. The House minority leader, Rep. David Baria (D-Bay St. Louis), introduced legislation this year to create a nonprofit that would disburse 80 per cent of the BP settlement funds for oil spillage recovery efforts in the affected counties and municipalities. Baria stated that he had closely followed the BP funding allocation discussions during the session, even though the bill was defeated in committee. While he applauded the decision to spend $41million of the initial check on the coast counties, he also criticized the lack of communication by the leadership. Baria stated that he didn’t believe any input was given by coastal officials such as mayors or economic developers. “Every dollar that we receive is meaningful because of the hardships the people in the spillage area went through… I have no problem with this plan. “I wish there had been more communication.” This week, several Republican budget committee members led by lawmakers, voted to cut budgets in many state agencies for the next fiscal year. Bryant announced Wednesday that he would make additional budget cuts in the current fiscal year. This is the second consecutive year this fiscal year Bryant has reduced state budgets. The Department of Revenue estimates that previous tax cuts have resulted in the state’s budget losing $168.4million for the current fiscal year. Revenue projections released last week were also grim. The state is becoming more cash-strapped and leaders will need to decide how to spend what little money it does have. The state has $109 million in cash. Coast lawmakers, including Sen. Deborah Dawkins (D-Pass Christian), expressed concern that this week’s BP money will be transferred to other parts of the state due to tax and budget cuts. Baria stated that it was frustrating. “If that money goes somewhere else, the Coast will suffer as an outcome.”