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Last updated 5:33PM ET
February 25, 2021
Judge Hears Arguments in Budget Lawsuit
(APR - Alabama Public Radio ) - A Montgomery judge has heard arguments on a lawsuit that could create a $63 million hole in the state General Fund budget.

Circuit Judge William Shashy listened to attorneys argue Thursday over a lawsuit that Tuscaloosa businessman Stan Pate filed against Gov. Bob Riley.

Pate's attorneys said Riley violated the state constitution when he put $63 million from the state's Exxon Mobil litigation into the state General Fund. They said the money should have gone into a state savings account known as the Alabama Trust Fund.

Assistant Attorney General Corey Maze said Riley was following the constitution. Maze said the Alabama Trust Fund receives royalty payments, and the $63 million wasn't royalties.

Circuit Judge William Shashy said he will try to rule by next week because the Legislature needs to know if the General Fund budget is affected.

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