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Posted on 03/29/2002 10:32:11 AM PST by Tumbleweed_Connection
A federal judge on Wednesday refused a request to set aside a $102 million tobacco settlement payment, allowing Tennessee to use the money to help balance its cash-strapped budget.
Attorneys for two Tennessee smokers asked that this year's payment be held in an escrow account until a larger lawsuit over tobacco-related injuries was resolved.
In denying that request, U.S. District Judge Aleta Trauger agreed with government officials who said if the state didn't receive this year's payment, it could "precipitate an unprecedented fiscal emergency."
Charles Temple's and James Wheeler's lawsuit claimed that people treated for tobacco-related injuries under the state's health care program for the poor and uninsured should be compensated for medical expenses before the state receives any settlement money.
The Legislature originally tried to divide the money equally between health programs and support for tobacco farmers, who have been affected by decreased demand for their crop.
Instead, lawmakers took this year's and three other years' worth of payments to balance the cash 2001-2002 budget plagued by a $350 million deficit.
Tennessee stands to receive more than $4 billion over 25 years under the settlement.
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