Burning Money

NY Times ^ | August 22, 2005 | HOWARD MARKEL

[neverdem]

IN the late 1990's, the tobacco companies made a historic legal settlement with every state and the District of Columbia, agreeing to pay $246 billion over 25 years for tobacco prevention and cessation programs. In the last five years, the states have received $40.7 billion in tobacco settlement revenue but have devoted only 5 percent of this money to fighting the tobacco epidemic.

Alabama has spent more than $1 million of this money on boot camps for juvenile delinquents, alternative schools and metal detectors and surveillance cameras for public schools.

Illinois has used $315 million for property tax relief and an earned-income tax rebate.

Michigan, which spends no money on tobacco prevention or cessation, has used 75 percent of its tobacco revenue to provide $2,500 college scholarships to high school students.

New York has used $700,000 to buy golf carts and an irrigation and sprinkler system for a public golf course in Niagara County.

In North Carolina, 75 percent of the tobacco settlement money went to provide assistance to the tobacco-producing community.

North Dakota spent about 45 percent of its settlement on water resources and flood control projects.

Virginia has spent $12 million to lay fiber-optic lines for broadband cable in southern sections of the state.

This lawsuit was never intended to balance ailing state budgets, let alone buy golf carts, cable lines and security cameras.

[2banana]

The "tobacco settlement" was an "end run" tax increase on smokers...except it was put in place by the judiciary (unconstitutional) with trail lawyers taking up to 1/3 of the 400 billion dollars. The whole deal should be null and void. If a state wants to tax tobacco, they can do that through the legislative branch.

[newzjunkey]

Anyone know whether the tobacco companies can sue the states for misuse of the settlement payments? Or taxpayers since the lawsuit was on their behalf?

[mdmathis6]

Now what there needs to be is a lawsuit by the tobacco companies alledging fraud...in that the settlements that were intended to fight the deleterious effects of tobacco are being diverted into government tax schemes!

[sergeantdave]

http://www.quitam.com/

Qui Tam ("who sues on behalf of the king as well as for himself") is a provision of the Federal Civil False Claims Act that allows a private citizen to file a suit in the name of the U.S. Government charging fraud by government contractors and other entities who receive or use government funds, and share in any money recovered.

[SheLion]

I will do my best.  I have been laid up for three weeks.

Read how much smokers are contributing to their state economy.  And some have the nerve to say smokers are the reason for higher health costs.  Read this and know the truth.

Your State Information:    (up to date)

View your tobacco taxes, a comparison of state excise taxes on cigarettes to state excise taxes on beer and wine, MSA payments to date, State laws, and links to other state-specific information.

Alabama Information / Alaska Information   / Arizona Information / Arkansas Information   / California Information / Colorado Information / Connecticut Information / Delaware Information   / DC Information / Florida Information   / Georgia Information   / Hawaii Information / Idaho Information   / Illinois Information   / Indiana Information   / Iowa Information   / Kansas Information / Kentucky Information / Louisiana Information   / Maine Information / Maryland Information / Massachusetts Information / Michigan Information / Minnesota Information   / Mississippi Information / Missouri Information / Montana Information   / Nebraska Information   / Nevada Information / New Hampshire Information / New Jersey Information   / New Mexico Information / New York Information / North Carolina Information / North Dakota Information   / Ohio Information   / Oklahoma Information   / Oregon Information   / Pennsylvania Information   / Rhode Island Information / South Carolina Information / South Dakota Information / Tennessee Information / Texas Information / United States Information / Utah Information / Vermont Information / Virginia Information / Washington Information   / West Virginia Information   / Wisconsin Information / Wyoming Information  

[Gabz]

Anyone know whether the tobacco companies can sue the states for misuse of the settlement payments? Or taxpayers since the lawsuit was on their behalf?

No they can not. The agreement specifically FORBIDS the companies from having any say in how the money is spent.

[SheLion]

Partnership For a Tobacco Free Maine spending $10,000 plus $4500 at Wiscasset Race Track,
Sunday 26th of May 2002 from smoker's taxes we pay on cigarettes in Maine.

 

 

 

Partnership for a Tobacco Free Maine not only sponsoring the race car, they are sponsoring Speedway 96! click here

 

(Rep.Clough (Republican) and Judy Peavy both think this is just fine!)

My letter to Governor King on the 7th of May:

Dear Governor King:   You need to cut programs because of the bad budget.  May I suggest you cut the funding for Partnership for a Tobacco Free Maine?   They are not only sponsoring a race car at Speedway 95, they are SPONSORING Speedway 95! If this isn't misuse of the budget, I don't know what is!   http://www.geocities.com/shelioness/speedway95.html   Cutting programs should start with this one.

19 May 2002-I checked the web site of Speedway 95.  PTFM is no where to be seen.  I hope this is a "good" sign, that the money is going to be better spent elsewhere.

Sadly, I was wrong.  See the article at top.  They spent money at Speedway 95 and now spending a large sum at Wiscasset.

You can write a letter of protest to your Elected Officials.

Mary Beth T. Welton from PTFM:  marybeth.t.welton@state.me.us

[SheLion]

MASS also built a $175,000 golf course with the taxes smoker's pay on cigarettes.

[Sunshine Sister]

To eveyone..........told you so!

[CSM]

"Anyone know whether the tobacco companies can sue the states for misuse of the settlement payments? Or taxpayers since the lawsuit was on their behalf?"

I'm pretty sure that a lawsuit is not possible as part of the settlement. However, an attempt was made to put the spending of the settlement money on the ballot in the state of Michigan. Don't worry, the socialists soundly defeated that attempt to spend the money for what was claimed as the cost to the state.

The only way for the money to be available for this pork spending is for the cost to not have been valid in the beginning. Remember this when smoking ban legislation is being discussed.

[Lokibob]

Thanks SheLion, I knew you would come through.

Here is hopeing you are on the mend......Bob

[metesky]

This lawsuit was never intended to balance ailing state budgets, let alone buy golf carts, cable lines and security cameras.

Sure it was...

[exnavychick]

In North Carolina, 75 percent of the tobacco settlement money went to provide assistance to the tobacco-producing community.

Bwhahahahaha! The morons...this is the kind of thing exposes them for the corrupt, greedy [bleep] that they are.

C'mon, boys, keep diggin'! I can't believe this article was in the Slimes!

[SheLion]

The MASS golf course figure should have read $175,000,000.

Sorry bout that! :)

[neverdem]

Thanks for the links!

[SheLion]

Thanks for the links!

You bet! :)

[TAdams8591]

"IN the late 1990's, the tobacco companies made a historic legal settlement with every state and the District of Columbia, agreeing to pay $246 billion over 25 years for tobacco prevention and cessation programs. In the last five years, the states have received $40.7 billion in tobacco settlement revenue but have devoted only 5 percent of this money to fighting the tobacco epidemic."

WOW!!!! The states should have to return all the money to the Tobacco companies, except for the five percent which was used as promised.

[TAdams8591]

She Lion, those links are great. I am going to bookmark this thread because of them.

So sorry to hear you were laid up. I hope it was nothing terribly serious or life threatening, and you are feeling better.

[TAdams8591]

Too bad.

[Gabz]

WOW!!!! The states should have to return all the money to the Tobacco companies, except for the five percent which was used as promised.

First - the money belongs to smokers, not the companies, the setttlement included a provision to add 45cents per pack to be paid by smokers....the companies pay NOTHING.

Second - the so-called reporters of this article need to do their research. There are no strings attached to this money - the pecentages were "suggestions" of how much should be spent on what. The settlement was supposedly repayment of what the states had spent on treating sick smokers in the past, money that supposedly culdn't be spent on other things..such as balancing budgets. Of course that is all bogus - but that was the premise.

Finally.......Philip Morris is working nationwide to get all states to pass legislation to force companies that did NOT sign the agreement (including ones not even in existence when the settlement was made)to comply with the settlement

In exchange for getting the government to do the dirty work of hurting PM's competition, PM is giving them a pass and not fighting increased cigarette taxes.