Monday, October 18, 2010

BP (NYSE:BP) Getting Sued by School Boards

It's no surprise to see school boards entering into the attempt to extract funds from BP (NYSE:BP) over the alleged effect on them from the oil spill in the Gulf of Mexico.

Some in the media are clueless or choose to ignore the depth of the ways many people or institutions may go to get some of the billions in funds made available for legitimate victims of the spill.

In this case, school districts in the Florida counties of Escambia and Santa Rosa are beginning the process of determining whether or not to sue BP over lost tax revenue.

Most of that is based on the alleged loss of tax revenue from the lower value of homes, and also from the loss of sales tax revenue.

I wonder how the distinction would be made between losses incurred from the mortgage debacle and recession and value allegedly lost from the oil spill? Other than Texas, beach areas in Florida were reportedly the least affected by the oil spill.

We at Dripping Oil have said for some time that the BP oil fund was going to be targeted in this way, as many have the same mindset they have concerning the government, that it is there for them to use and abuse in order to fund their pet projects or agendas.

In this case it's unsurprising to see government entities attempt to use BP as a source to replace lost tax revenue.

Interestingly, both these school districts seem to be saying they're not affected at all at this time, but might be, so they should look into initiating lawsuits.

Escambia Superintendent Malcolm Thomas said, "We anticipate decline in sales tax revenue for the school district, and property value — school taxes — that will impact potential revenue we will have for future school years."

One Santa Rosa, School Board member, Ed Gray, was a little more realistic, saying, "If we've been damaged, we ought to go after it. If not, we shouldn't waste a lot of people's time."

If either district chooses to pursue this, it would be done on a contingency basis.

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