State lawmakers look at tobacco settlement spending

A panel of state lawmakers is taking a look at how the state spends its share of a federal tobacco settlement with the possibility of slight changes to the spending program early next year.


Forty-six states, including Arkansas, in 1998 settled a lawsuit against the tobacco industry. Since then, Arkansas has received $446 million, including about $57 million this year, with all of the proceeds devoted to seven health programs. Arkansas’s share is projected to be $1.6 billion over 25 years, though some tobacco companies that were part of the original settlement are now trying to change those terms, putting future payment in jeopardy. That issue isn’t likely to be settled for a couple of years.
In the meantime, Arkansas is one of the few states to devote its entire share to health programs, in accordance with an initiated act approved by voters in 2000. The state has won accolades from national health organizations for the commitment.
In the 2001 session, the General Assembly implemented legislation putting the tobacco funds into effect. Debate had raged for months on the issue. People on all sides brought up some good points.
With annual payments of $50 million to $60 million each year, lawmakers put the first $100 million in payments into an interest-bearing trust account that’s now up to $125 million. Since then, the payments have gone to establish research facilities and health programs at Arkansas State University, the University of Arkansas at Fayetteville and the University of Arkansas for Medical Sciences.
Other funds have been disbursed for various treatment programs, such as for breast cancer and cervical cancer; to the Meals on Wheels program, for the elderly and for shut-ins; a School of Public Health at UAMS; grants to local communities and hospitals; and smoking-cessation and prevention programs, especially those aimed at young people.
Members of the health services subcommittees of the House and Senate committees on public health, welfare and labor plan to hold eight to 10 meetings reviewing the tobacco funds. The first of those was held recently in Little Rock.
An overhaul of the spending plan isn’t expected, according to news accounts of that first meeting. Any adjustments could be approved in the fiscal session we’ll hold in February, but voters’ intent in their overwhelming passage of the 2000 initiated act will be kept front and center.

© Copyright:  Thesuntimes

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