Home
Back to News

http://thefacts.com/story.lasso?ewcd=5cec466dc4c88233

Oil royalties should go to coastal aims


 

Published February 27, 2007

Almost a decade ago, Texas and other states were heralding their windfall from historic settlements with the tobacco industry. The billions of dollars the states would reap would make great strides against the scourge of smoking, boosting anti-smoking efforts to keep children from picking up the habit and helping defray the states’ health burden from smokers.

The problem, it turns out, is the states treated the settlement as found money, as though they woke up one morning to discover they had been named in the will of a distant rich uncle. And instead of using the tobacco settlement money for anti-smoking efforts and other such worthwhile programs, state legislatures spent it on about everything but that noble and justifiable purpose.

Tobacco money built roads and bridges, new prisons, improvements to a Virginia race track and a golf course sprinkler system in New York, according to ABC News. Only 3 percent of the estimated $246 billion settlement has gone to smoking prevention and cessation efforts.

Campaign for Tobacco-Free Kids found Texas is not much different. Of almost $1.4 billion in tobacco-related revenue expected this year, including hundreds of millions in tobacco settlement money, Texas will spend just $5.2 million on tobacco prevention.

The lesson in all this can be applied to another windfall that apparently awaits Texas. A measure expanding energy drilling in the Gulf of Mexico was signed into law by President Bush last year, giving four states, including ours, the potential to reap billions of dollars in oil royalties. Its advocates said the windfalls would be earmarked toward reversing damage from offshore industry, such as wetlands restoration and coastal preservation.

Such money would be a boon for our state, whose coastline is the most rapidly eroding in the nation. It could help fix the damage at Surfside Beach, free up the mouth of the San Bernard River and countless other worthwhile projects that are desperately needed.

But as often is the case with great ideas from Washington, there is a catch. The bill included a loophole that will allow states to use the royalties for things other than coastal projects, including — you guessed it — paving roads, building bridges and countless other projects they can loosely connect to the coast.

We hope our legislators avoid the temptation to take advantage of the loophole. Instead, we encourage them to place the windfall into a trust to provide a dedicated funding source for addressing coastal environmental issues. The General Land Office and other agencies have been seeking one for years, and this windfall presents the perfect opportunity.

Louisiana, which also will be rewarded by the expanded drilling, didn’t let its opportunity pass by. It passed a referendum last year requiring all the royalties be used on wetlands and coastal preservation. Texas should follow suit.

Each year, officials in coastal areas are left to beg for the limited resources to protect the Texas coast. Most years, their begging falls on deaf ears, with state officials throwing up their hands because they have so little money to disperse.

Dedicating the new oil royalties could change all that and save one of the state’s most valuable commodities. Legislators and voters should push to make that happen before the new oil money, like that from the tobacco settlement, vanishes in the smoke and mirrors of the state budget.

This editorial was written by Michael Morris, assistant managing editor of The Facts.