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MONTGOMERY, Alabama A panel of state lawmakers on Thursday approved a plan to pay for Alabama's All Kids children's health insurance program next year by taking $30 million from a fund created to pay for telephone services for the deaf.

he said. State Finance Director David Perry, Gov. Robert Bentley's top finance adviser, said $30 million taken from the relay system fund would pay for All Kids next year, and growth in taxes would cover the programs' cost in later years.

The fund is financed by a 15 cents per month surcharge imposed on land based phone lines. The surcharge raises more than $3 million a year. Spending on the system and related programs totals about $2 million a year. A surplus of just more than $30 million has built up over two decades.

"It is my responsibility to protect the ratepayers," Dunn said. "This surcharge was intended to help the deaf and blind. If it is not used Adidas Boost Women's Trainers

The Ways and Means Education Committee of the state House of Representatives approved House Bill 432 by voice vote. The House could debate the proposal next week.

John Garner, the PSC's chief legal counsel, said supporters of the dual party relay system had hoped its fund would grow enough so that interest and other earnings would pay for programs and the PSC could end the surcharge.

´╗┐Alabama phone fund for deaf may be tapped to pay for All Kids health insurance

The fund finances a "dual party relay system" that lets deaf or hearing impaired people use phones to communicate with others, and it pays for related programs.

for that purpose, then these funds should be refunded to ratepayers."

Love said the General Fund next year and in coming years likely won't be able to afford to pay $30 million a year for All Kids, which provides health insurance to teens and children whose families make too much money to qualify for Medicaid.

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Garner said the number of landlines statewide is decreasing, and he warned that revenues in the future could fall below current program expenses. "Now, we'll probably have to raise the surcharge. Certainly, we'll have to keep the surcharge on."

Love said the state education budget for next year, as approved Wednesday by his committee, depends on the $30 million transfer to balance. "These are tough times. We're trying to make the best of a really Adidas Basketball Shoes For Ladies dire situation," Adidas Climachill Cosmic Boost Review

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General Fund.

House Bill 432 by Rep. Jay Love, R Montgomery, would take almost all the surplus in the 2012 fiscal year by transferring $30 million to the Education Trust Fund, which next year would fund All Kids instead of the Adidas Boost 350 Women

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"Otherwise, these fees will have been collected under false pretenses, basically a backdoor tax," Dunn said.

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(The Birmingham News file)

Public Service Commissioner Terry Dunn asked committee members not to raid the relay system fund.

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