Proration is a word we hear in the news, but that many people don’t understand. Proration is a financial situation that occurs when state government is spending more money than it is taking in, which is wisely forbidden by our state’s constitution.  When Alabama’s governor is made aware that the state is spending more than it has, he is required by law to cut spending enough to end the year with the state’s checkbook balanced.  Proration is usually caused by a poorly planned state budget.

On January 12 of this year, in his State of the State address, Governor Bob Riley said, “Let’s begin by discussing our budgets.  I know you’ve read the same dire predictions and heard the same horror stories that I have.  You’ve heard nothing awaits us in this session but doom and gloom.  The lobbyists and the gambling interests have told you over and over that we must find new revenue, somewhere, or the sky’s going to fall.  Ladies and gentlemen, that’s what we in Clay County would call a crock.  In the budget I’m sending you, General Fund agencies will receive the same amount of funding that they will be getting this year.  No cuts.  In fact, there is the potential for them to receive an increase of up to four percent.  And in the education budget, that budget will increase funding for schools by over $400 million.  No cuts for state agencies, more funding for our schools, without raising anybody’s taxes.  Now that does not sound like we have a crisis.” 

These were Governor Bob Riley’s own words, spoken from his own mouth, on live statewide television.  So, what happened after this January 12 speech?  What is the truth?  Last September, 12 months ago, Governor Riley announced that he would prorate the education budget by 7.5%.  On September 16, 2010, less than nine months after his speech telling us that Alabama didn’t have any financial problems, Governor Riley announced he was prorating the education budget again by 2%, another $113,000,000 in cuts.  These are not small amounts.  These are not tiny budget errors that can be caused by an honest, small mistake.  These are huge amounts of money, major contradictions, and serious problems. This happened because Governor Riley’s budget went beyond deception, it was downright dishonest.  He presented, lobbied for, and passed his budget – a budget that was totally dependent on the hope that President Obama would be sending Alabama more “stimulus” money – IF – the President could get Congress to approve it.  To no one’s surprise, Congress didn’t approve it and the money that was never there in the first place didn’t get sent to us.  So, on October 1 the state begins a new fiscal year with education cuts of 9.5% as a result of Governor Riley’s wishing for a welfare check from President Obama. 

Now, Governor Riley needs someone to blame for the financial fiasco he created.  When BP announced that it had rejected Alabama’s claim for tax losses resulting from BP’s oil rig disaster the Governor predictably blamed me.  The state’s lawsuit against BP did not cause proration, though.  Lawsuit, or no lawsuit, BP never intended to voluntarily pay our state’s claim.  Just ask any of the tens of thousands of individuals and businesses who are still waiting for their claims to be paid.  BP talks a good game, but they walk a crooked walk, and that is why I sued them. Ever since BP tricked the first fisherman in Bayou La Batre into signing away his legal rights I have been warning that BP could not be trusted.  After all, BP is not a charitable foundation looking to make grants; it is a giant international corporation with an obligation to its stockholders to maximize and protect its profits, not to give them away.

I have repeatedly asked Governor Riley to lay aside his personal agenda and to work with me to defend Alabama.  He has refused every time.  So the Attorney General’s Office finds itself on the other side of BP and Bob Riley, and you can bet your last dollar that BP is thrilled.  Desperate for a quick fix, Governor Riley has allowed himself to be manipulated by BP and, as a result, he has unwittingly protected BP’s interests.  The Governor’s failure to fully document his claim gave BP an excuse to reject it – and they did.  That was no surprise, it was expected.  Wishing is not a strategy.  We cannot simply wish that BP will do the right thing.  That is why I chose an approach of strength – a lawsuit.  If BP will not willingly pay Alabama what it is owed, a court must force them to do so.  And the excuse that BP rejected Alabama’s claim because we are suing them doesn’t hold a drop of water.  They have not paid the other Gulf coast states either – states that haven’t sued them, but have filed claims.  Alabama should not settle for pennies on the dollar just to prop up Bob Riley’s budget disaster until he leaves office in four months.  The State’s interests are much larger and longer-term and will necessarily be a top priority for the next Governor and Legislature. 

It is clear that BP is not dealing in good faith and is using lies, excuses, and even Alabama’s own Governor to keep from paying their obligations to individuals, businesses, and the State.  The lawsuit I have filed will require full accountability from BP.  Unlike the Governor, I will not rush our claim and settle for whatever BP is willing to pay.  Instead, I will prepare a properly documented claim and demand what Alabama is owed.