Florida May Seek $1 Billion from BP to Cover Budget Shortfall

Florida may send BP a claim for more than $1 billion to cover a budget gap created by the largest U.S. oil spill, which slashed tax receipts from tourism. The state is considering seeking an initial payment in the "lower range" of billions of dollars to make up for lost tax revenue. This move would allow Florida to ask London-based BP to pay it separately from the $20 billion fund the company set up to handle claims, ensuring that the state doesn't have to compete with its own citizens.

Key Takeaways:

• Florida may submit a claim to BP for more than $1 billion to cover a budget shortfall caused by the oil spill.
• The state is seeking an initial payment in the "lower range" of billions of dollars to compensate for lost tax revenue.
• Florida will ask BP to pay separately from the $20 billion fund set up to handle claims, ensuring that citizens are not disadvantaged.
• Representative Kathy Castor, a Florida Democrat, emphasizes the need for an interim payment to support small-business owners.
• BP is retaining the government claims process and will work with states to reach a settlement.
• Kenneth Feinberg, a Washington attorney, will take over claims handling from individuals and businesses on August 23.
• Alabama has already submitted a $148 million claim to BP for revenue losses due to falling tax receipts in Mobile and Baldwin counties.
• Todd Stacy, press secretary to Republican Governor Bob Riley, expects more claims to follow.

Statistics:

• $1 billion: the estimated amount Florida may claim from BP to cover its budget shortfall.
• $20 billion: the fund set up by BP to handle claims.
• $148 million: the amount claimed by Alabama for revenue losses due to falling tax receipts.
• August 23: the date when Kenneth Feinberg will take over claims handling from individuals and businesses.

Sources:

• Bloomberg News
• Reuters File Photo, Ben Gruber/Bloomberg News
• 2010 Toronto Star