Post by pavel on Jan 21, 2016 19:05:45 GMT -6
Gov. John Bel Edwards’ proposal to redirect Gulf oil spill recovery money to rebalance this year’s budget appears to conflict with a legal settlement the state struck two years ago, aimed at ending a lawsuit over Louisiana’s “rainy day” fund.
Edwards wants to steer $200 million Louisiana is receiving this year from BP PLC, compensation for economic damages from the massive 2010 oil spill, to help plug a $700 million-plus hole in the state’s $25 billion budget. The gap must be closed by June 30.
But lawmakers earmarked those oil spill dollars to repay trust funds that had been raided in earlier budget balancing efforts, including the rainy day fund. Passage of that legislation helped former Gov. Bobby Jindal settle a 2010 lawsuit claiming Louisiana hadn’t properly refilled the rainy day fund after its use several years ago.
Redirecting the money as Edwards proposes “would clearly violate the state’s agreement,” said lawyer Kyle Keegan, who represented the men who sued the state, former state Rep. Ron Gomez and tea party activist Bob Reid.
Read more: theadvocate.com/news/14642348-100/gov-edwards-budget-plan-at-odds-with-lawsuit-settlement
Edwards wants to steer $200 million Louisiana is receiving this year from BP PLC, compensation for economic damages from the massive 2010 oil spill, to help plug a $700 million-plus hole in the state’s $25 billion budget. The gap must be closed by June 30.
But lawmakers earmarked those oil spill dollars to repay trust funds that had been raided in earlier budget balancing efforts, including the rainy day fund. Passage of that legislation helped former Gov. Bobby Jindal settle a 2010 lawsuit claiming Louisiana hadn’t properly refilled the rainy day fund after its use several years ago.
Redirecting the money as Edwards proposes “would clearly violate the state’s agreement,” said lawyer Kyle Keegan, who represented the men who sued the state, former state Rep. Ron Gomez and tea party activist Bob Reid.
Read more: theadvocate.com/news/14642348-100/gov-edwards-budget-plan-at-odds-with-lawsuit-settlement