Leaders oppose bill to divert TVA allotment

MOULTON -- Lawrence County officials are urging their state delegation to give them additional funding from the Tennessee Valley Authority.

Commissioners along with Moulton, Town Creek and Courtland council members are asking that additional money from TVA be given to the local bodies rather than to a proposed community development commission.

Rep. Jody Letson, D-Hillsboro, has proposed a bill that would create a commission to promote economic development in the county.

The commission would be funded by a 2006 state-approved 3 percent increase in TVA's in-lieu-of-tax payments that go to Lawrence County.

As a federal agency, TVA does not pay state and local taxes. Instead, it makes a single payment to the state general fund each year.

TVA funds are divided among all 67 Alabama counties. Lawrence County received a 3 percent increase in TVA payments this year because of a gradual decrease in payments going to south Alabama counties that TVA does not serve.

Area officials have argued that the TVA payments belong to the county and should be disbursed by local elected officials rather than by an appointed commission.

The bill would allow each member of the legislative delegation, which includes Letson, Sen. Zeb Little, D-Cullman, and Sen. Roger Bedford, D-Russellville, to appoint one member to the commission. It would also include one elected official.

"Boards are not elected," said county commission Chairman Mose Jones Jr. "The responsibility should come back to the (local) commission."

Lawrence County received more than $2 million in TVA money in 2006. One-third of the money goes to the school system, and the rest is divided among cities and towns within the county.

Letson said the 3 percent increase would amount to $85,000 to $100,000.

"It's new money that doesn't go to anybody," Letson told county commissioners. "It won't affect what you have been getting. I wouldn't do anything to hurt the county or the cities."

Commissioner Bradley Cross said increasing costs have put the county in a bind and the additional money would be an asset.

"We're not generating anything to keep up with inflation," Cross said. "Anything we could get in addition to what we're already getting would be a plus. It may be extra money, but it's money that we need."

Cross said that a day might come when local taxes have to be raised to keep the county going. "Nobody wants to hear that," he said.

Moulton Mayor Ray Alexander said the additional TVA money would give his city about $16,000.

"We could take that money and leverage $1 million that we could do for different things," Alexander said.

Letson said the community development commission would use the funding to match grants and incentives needed to land industry.

Courtland Mayor Ted Letson said he understands the need for more industry in the county, but he would like for the TVA money to help the town's general fund.

"I would like to see us do this if another bill comes up," Ted Letson said.

The Lawrence County Republican Party issued a release in opposition of the bill.

Party chairman Danny Kerby said the bill would "decrease funding for current services" that "could include care for the elderly, law enforcement or paved roads."

The bill would allow Rep. Letson to recommend how the commission should spend 50 percent of the funding. Little and Bedford would be allowed to recommend the remaining 50 percent.

More money will begin going to counties served by TVA each year as portions of the funding gradually stops going to counties not served by TVA.

Rep. Letson said he could look into a cap being placed on the amount going into the commission so the rest could go to local bodies.

Jonathan Willis can be reached at 332-0140 or jonathan.willis@timesdaily.com.