BP Declines To Pay Alabama Claim, School Funds Cut

MONTGOMERY, Ala. (AP) - BP has declined for now to pay Alabama
on its $148 million claim seeking reimbursement for tax revenue
lost by the massive oil spill in the Gulf of Mexico - a move that
caused the governor to cut school funding.

BP officials partially blamed the lawsuit filed against the
company by Alabama Attorney General Troy King for the delay in
making payments on the $148 million claim.

Because the state is not receiving the BP payments, Gov. Bob
Riley cut the education budget by an additional 2 percent Thursday.

It already had been cut 7.5 percent. Riley said the move was
necessary because the state is required to balance the budget by
the end of the school year on Sept. 30.

Riley blamed King's lawsuit for the school budget cuts.

(Copyright 2010 by The Associated Press. All Rights Reserved.)

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