/Senate opts to provide bulk of $700M BP money to Coast, setting up a showdown in the House

Senate opts to provide bulk of $700M BP money to Coast, setting up a showdown in the House

The Legislature would disburse the remaining 25 percent to the other 76 county. Late Tuesday, Gov. Late Tuesday, Gov. Phil Bryant increased the agenda for the continuing special session to include the BP Settlement funds. This was after the Legislature passed bills that are expected to generate approximately $200 million annually to repair the state’s crumbling infrastructure system. The settlement of $2.4 billion that Attorney General Jim Hood and others negotiated for BP includes $700 million. It was part of the settlement that Attorney General Jim Hood and others negotiated after the 2010 explosion of Deepwater Horizon’s oil rig and subsequent oil spillage in the Gulf of Mexico. The Coast’s environmental restoration projects will receive the bulk of $2.4 billion of the $2.5 billion that was not paid to the state for economic damage. The funds were also distributed to coastal municipalities and counties for other issues, such as the reimbursement of at most a portion of the lost sales tax revenue. The Senate distributed the money late Tuesday to compensate the state’s loss of sales tax revenue due to the Coast’s economic downturn. The current law provides that municipalities are entitled to 18.5 percent of sales taxes. This includes a 7 percent tax on most retail products. Lt. Governor was responsible for negotiating the 75-25 split. Tate Reeves and Speaker Philip Gunn negotiated the 75-25 split. The legislation included 128 earmarks, or special infrastructure projects, for almost every part of the state. These projects cost $111 million. Some people argued that $700 million should be more evenly distributed across the state. However, their efforts in the Senate failed Tuesday night. The House will likely take up the bill Wednesday. The bipartisan effort to distribute the funds equally among the 82 counties is being led by Tracy Arnold (R-Booneville) and Tom Miles (D-Forest). The state has already received $150 million in settlement funds, and the Legislature has spent approximately $50 million on projects primarily Gulf Coast-related. The bill’s $111 million in earmarks is being paid for using BP funds already received by the state and $50 million in bonds that were approved in the special session. In payments of $40 million each, the state will receive the $600 million final in 15-year installments. The Senate bill includes the Gulf Coast region, which is comprised of Harrison, Hancock, Jackson, and Pearl River and Stone counties.