Riley Favors Taking Some Federal Dollars But Not Others

Montgomery, Alabama – Alabama Governor Bob Riley says the state will take the $170 million that the federal government is releasing this week for Medicaid funding. Riley says the money for the Medicaid Program will help "fill some gaps" in the state's general fund budget.

Riley, on the other hand, says he plans to reject $66 million that the federal stimulus package would provide for unemployment benefits over four years. The Governor says he does not want the funds because they are tied to legislation that would require Alabama make a permanent expansion in its jobless benefits law.

Riley says the federal money runs out after four years, and if Alabama accepted the $66 million, the state would be required to come up with about $17 million a year to continue those unemployment benefits.