Where Has All the Tobacco Money Gone?

ABC NEWS INVESTIGATION ^ | Nov. 4, 20 | BRIAN ROSS

[SheLion]

Money from the landmark settlement with Big Tobacco helped pay for a a golf course sprinkler system in New York State.  (ABC News)

Money From Settlement With Big Tobacco Goes to Fund Auto Speedway, Golf Course Sprinklers

Nov. 4, 2005 —  Less than three percent of the $250 billion settlement between the tobacco companies and the fifty states has been used to fund anti-smoking campaigns.

When the tobacco industry settled out of court with the 50 states seven years ago this month, state officials said the money would be used to prevent kids from starting to smoke. Anti-Smoking Campaigns Forgotten

Yet, in Virginia, a large portion of the tobacco money has been used to improve an auto speedway while in New York, it was invested in a golf course sprinkler system.

New tobacco warehouses were built with the money in North Carolina, and in Lincoln, Neb., officials used the money to enforce the pooper-scooper law. In Kentucky, cattle farmers received the money through farm subsidies. "Everything except getting our kids not to smoke," said Joseph Califano, former secretary of health, education, and welfare during the late 1970s. "And it's a tragedy." Despite what officials — including Connecticut Attorney General Richard Blumenthal — promised in 1998, 97 percent of the funds won by the states from the tobacco companies went for anything but anti-smoking campaigns.

"We need to use the tools and resources that this agreement will give us to enter a new phase in this campaign," Blumenthal said in 1998.

Since then, his state has ranked the sixth lowest in spending on anti-smoking campaigns.

"I am embarrassed and outraged that our state has been virtually dead last in using the money as it was designed to do," said Blumenthal.

In Buffalo, N.Y., county officials chose to take less than half what they were due so that they could receive all of the money up front. According to County Executive Joe Giambra, most of that money has since gone to fund civic improvements.

"Not a penny," Giambra said of the tobacco money. "We have not spent any money specifically from this settlement agreement."

Some States Have Limited Success

The few states that have used the money for aggressive anti-smoking campaigns have seen successful results.

Florida created anti-smoking commercials, including one in which smoking wins a mock award for causing the most deaths in a year.

"They showed a 38 percent drop in teenage smoking, the most dramatic drop in the country," said former health secretary Califano.

After only a few years, however, the Florida legislature drastically cut the money for the campaign from $70 million a year to $1 million a year.

"We've lost over these years hundreds of thousands of kids who have become addicted to cigarettes, who we know we could have kept off if the governments of the states had invested that money in tough prevention programs," said Califano.

[SheLion]

Partnership For a Tobacco Free Maine spending $10,000 plus $4500 at Wiscasset Race Track,

Sunday 26th of May 2002. 

 

Kick Butts Racing is a statewide program that sponsors drivers at each of Maine's five short tracks as well as backing Maine native Tracy Gordon on the Busch North Series. Also wearing the Kick Butts Racing colors are Ryan Shepard at Beech Ridge Motor Speedway, Jimmy Kaler at Wiscasset Speedway, Mike Thomas at Speedway 95 in Hermon and Unity Raceway driver Jeff Burgess.

5 Race Teams sponsored with our cigarette taxes........

 

Governor King wants to cut Pet Programs. Why doesn't he start with the PTFM?

 

This is worse then I thought.

 

 

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!)

 

Augusta, Maine – Speedway 95 was well represented at the 2002 Northeast Motorsports Expo at the Augusta Civic Center this past weekend with six exhibitors displaying their cars for the racing season.

(Goes on to list the drivers, then this:
Also, representing the Partnership for a Tobacco Free Maine racing team was Mike Thomas of Etna.

One gentleman said to me: "I see this as a flagrant, in-your-face insult to all people that pay taxes on tobacco."     click here

You can send email protesting this:  marybeth.t.welton@state.me.us

Maine has its priorities crossed. Back in January, health advocates urged lawmakers to spare successful programs in anti-smoking funds.

Maine receives annually $55 million from the Tobacco Settlement, to which the smokers in Maine are paying for. Although Maine had a choice how to spend the money, it was intended for education and to pay for any sick smokers on welfare, should there be any.

House Speaker Michael Saxl said that given the $248 million budget shortfall facing the state, there must be room for some cuts in the health programs.

Attorney General Rowe said that Maine is one of the few state’s that has committed "most" of the money to health programs. I say "Show me the programs!" Most of this money is being spent on pet programs.

For instance: The Partnership for a Tobacco Free Maine is sponsoring Speedway 95, and Wiscasset Race Track. Memorial Day, the "prestigious" Partnership for a Tobacco Free Maine is awarding the winner of the Coastal 200- $10,000. With $4500 going to the runner-up.

I wonder how many people this money could have helped that can’t afford health insurance. I wonder how many people this would have helped in nursing homes who have no insurance. I wonder how this money could have helped with children’s nutrition, prescription drugs, child care and substance abuse.

Governor King states Maine Health Care is failing. The money PTFM is wasting at a racetrack could have been spent in a kinder more gentler way.

William Corr, executive director of the Campaign for Tobacco-Free kids says Big Tobacco is targeting our kids, while Corr is targeting the wallets of all who pay cigarette taxes in Maine.

This is a blatant slap in the face to all that pay cigarette taxes.

 

Coastal 200 at Wiscasset Sunday worth $10,000

26 May 2002

Our cigarette tax dollars at work..............

 

 

The tobacco money was also given to a little old lady in Ellsworth to plant a flower garden in the center of town!!  Talk about a waste of MONEY!!

 

 

[malia]

I thought it went to one of hillary's brothers!!!

[SheLion]

[zarf]

This is the biggest non-news story of the year.

This was a lawyers grab bag. Nothing more, nothing less.

[clee1]

As was predicted here on FR, the money extorted from the smoking public has been wasted.

Big freakin' surprise!

[weegee]

IN Texas the money went to the top Democrat contributors in the state. All lawyers. All "consultants" on this case because obviously the government staff were ill informed.

[Wolfhound777]

Up in smoke.

[weegee]

Considering the taxes collected on cigarettes were already spent on non-tobacco programs, this should not have been a surprise.

[SheLion]

As was predicted here on FR, the money extorted from the smoking public has been wasted.

It's good to remind people that the MSA is NOT going for HEALTH care!

[JudgemAll]

This suit was the bigger lie exploiting smokers and the industry. It's disgusting. The money should be returned, lawyers and officials jailed for perjury and extortion, period.

I do not know how the feds let this confederate gang get away with it like this either. The reference of a whole industry to a state's predatory moves is a terrible precedent not seen since pre-civil war slavery and state rights rebellion. This country is going to be teared appart again if this anarchy is not stopped.

It's easy for the IRS to go after the little guy, but when it comes to getting illegal taxes perceived by the state at its own indsutrial base expense, it does nothing.

Cowards.

[singfreedom]

I thought most of the money went to the attorneys on the case anyway. I never figured they would use the money for what they claimed. Parents are the best defense against teen smoking anyway.

Typical Clintonian morals/politics, make a big show of things, then just do what you want to anyway.

[clee1]

Patience FRiend.

Either the Messiah will come again soon, or CW2 will. Either way, all of this bullsqueeze is nearing its end.

[SheLion]

I don't know why we have little red x's. I HATE those!!!!!!!!!

[SheLion]

IN Texas the money went to the top Democrat contributors in the state. All lawyers. All "consultants" on this case because obviously the government staff were ill informed.

And New York spent $175,000 of that money to build a fricken GOLF course!!!!

IN Texas the money went to the top Democrat contributors in the state. All lawyers. All "consultants" on this case because obviously the government staff were ill informed.

And New York spent $175,000 of that money to build a fricken GOLF course!!!!

[KingKongCobra]

Wanna guess where the big oil tax that congress is talking about will go?

[weegee]

IN Texas over a billion went to a handful of lawyers who couldn't have spent that much time on the actual case. When push came to shove they actually kicked out a couple Rat lawyers who weren't connected well enough.

[weegee]

That's what I don't understand. Profits ARE taxed. Salaries ARE taxed. Higher profits already mean higher tax revenues.

Raising taxes does not discourage seeking profit. But it does trouble the consumer who must meet the added costs.

How much is Hollywood making? Billions off of films that legally (and constitutionally) should have lapsed into the public domain decades ago?

Methinks there are special interests at play here.

[Fenris6]

"This was a lawyers grab bag. Nothing more, nothing less."

Trial Lawyers grab bag, who turned around and donated to the Dem party. Kinda corrupt: "You let us shake down the Tobacco firms and we'll cut you in for 10%"

[SheLion]

Parents are the best defense against teen smoking anyway.

Where was TEENS brought up?  This is about the Tobacco Settlement Money and how is is wasted.  It's the parents responsibility to educated their kids about smoking, like you said!

[taxesareforever]

Talk about a waste of MONEY!!

To a liberal it is never a waste of money to take from the rich and give it to whomever they want. If anyone thought for a minute that tobacco settlements would go toward smoking prevention they must have received an A in Stupidity 101.

[JoeGar]

The Tobacco Settlement was never about getting kids to stop smoking. It was about extorting money from consumers for lawyers and government coffers.

[pepsionice]

This really destroys any hope of another huge courtcase like this. If the money never went to the intended programs...why bother having a courtcase?

[SheLion]

Yes, and that's why it sticks so closely to the anti party line.  In other words, it supports the notion that the antis should have all the money when in fact the MSA put no strings whatever on how the money should be spent.  Better that it be spent on golf courses than on funding antis to create more bans and lobby for higher and higher taxes on smokers. 

 

In addition, Califano's org is almost entirely  a RWJF creation and his bucks come from following their soundbites.

 

And the drop in youth smoking rates in Florida was not due to the insulting ads the antis ran but to passage and enforcement of a state law making youth possession of tobacco illegal.  

 

ABC is simply doing the bidding of Big Pharma, especially the RWJF.

  

[aardvark1]

Did any sane person believe this was "real" money? This was money that exchanged hands within the realm of legal firms and then states trumpeted the use of tobacco settlement money as an excuse to spend on useless social welfare programs.

It's the same kind of money we "get" from state lotteries. Where has all that money gone over the years?

[conservative cat]

Bump for later read.

[Jhensy]

"Cigarette companies are already selling cigarettes like crazy to pay for the $206 billion anti-tobacco settlement won by the states, which are distributing the money as follows: (1) legal fees; (2) money for attorneys; (3) a whole bunch of new programs that have absolutely nothing to do with helping smokers stop smoking; and (4) payments to law firms. Of course, not all the anti-tobacco settlement is being spent this way. A lot of it also goes to lawyers..."

Dave Barry

[kittymyrib]

I'd rather have the money spent on all these pork projects than the BILLIONS that sleezy Texas lawyers got out of the settlement, in spite of the fact that they did virtually NO work on the case. They came to the trough after other states' attornies general had already filed and argued the case. I recall that it worked out to be about $200/MINUTE for their legal fees.

[Gabz]

And the drop in youth smoking rates in Florida was not due to the insulting ads the antis ran but to passage and enforcement of a state law making youth possession of tobacco illegal.

How are youth smaking rates determined? Through questionaires and surveys. When the penalty of underage smoking is the possible loss of your driver's license, as is the case in Florida, does anyone thik any teenager is going to admit to smoking? Of course not - and so they have absolutely no clue whatsoever if there has actually been a drop in the numbers. They just have responses to surveys.

[commonguymd]

"This was a lawyers grab bag. Nothing more, nothing less."

Precisely

[weegee]

Such court cases are just a money grab.

Most consumers are unaware that there was a major class action lawsuit filed by states on behalf of CD buyers. Sony and others were accused of price gouging. They settled out of court with the states (and some consumers saw $10 "refund" checks).

The (connected, contributing) lawyers got paid in cash. The states got paid largely in CD deadstock as "educational" materials.

[Diana in Wisconsin]

Wisconsin sold their windfall in the form of bonds against FUTURE lawsuits for more money from the tobacco companies.

And those that are still steaming over the fraudulent election in Washington state will LOVE to be reminded of how former Washington State Attorney General Christine Gregoire fought so valiantly for her party. *Rolleyes*

Is it a coincidence how SHE was a State AG, and the Democratic Governor Wisconsin got stuck with (Jim Doyle) who was also OUR State AG both ended up with Governorships after this mess? Hmmmm...

Read on, Freepers and tell me if you can connect any dots between Big Tobacco and say, the DNC:

States squander chance to fight smoking
By Rick Hampson, USA TODAY
(from their archives)

After Wisconsin's $5.9 billion settlement in the national tobacco lawsuit four years ago, Attorney General James Doyle said his state could afford $100 million a year to fight smoking, $99 million more than it was spending.

His colleagues around the nation agreed: The $246 billion cigarette makers would pay the 50 states over 25 years could finance a sustained war on America's deadliest habit.

Although some state officials favored other uses for the money, school construction, medical research, tax cuts: few disagreed when Doyle called the tobacco litigation funds "the chance of a lifetime."

But in January when Doyle was sworn in as governor, Wisconsin's billions were already gone. That's because the state, facing the worst fiscal crisis in its history, had sold 25 years of tobacco payments for $1.3 billion upfront to balance a single year's budget.

Wisconsin, where four in 10 high school seniors smoke, isn't the only state to cash in its "chance of a lifetime." Faced with unprecedented budget gaps, many have sold or are thinking about selling years of future tobacco payments to pay this year's bills.

It's called securitization: By issuing bonds backed by future tobacco settlement payments, a state can effectively act like the lottery winner who chooses to take a lesser, lump sum now instead of an annuity spread over 20 years.

Most governors and legislators say that while they want to control tobacco use, they also need money immediately to avoid higher taxes, layoffs and program cuts. So they eye the tobacco money, which many of their constituents have forgotten or never knew about in the first place.

But Washington State Attorney General Christine Gregoire, whose state tapped part of its tobacco settlement last year to balance the budget, says it's a disastrous policy.

"Never in my wildest nightmares did I think we would give up this settlement for cents on the dollar," says Gregoire, who was lead negotiator for 46 states in the tobacco litigation talks and who objected vociferously to her own state's (and party's) securitization plan. "It's selling our children's future."

As more than 30 states fight to close budget gaps, she's afraid the selling isn't over: "The money in the tobacco settlement is as addictive to states as the nicotine in cigarettes is to smokers."

She has a seemingly improbable ally: the tobacco companies. They have no say in how the tobacco settlement is spent, and no stand on securitization per se. But Philip Morris USA, for instance, agrees with the anti-smoking lobby: Not enough of the tobacco settlement is going to fight youth smoking.

http://www.quit-smoking.net/news/page8.html

[Diana in Wisconsin]

"Read on, Freepers and tell me if you can connect any dots between Big Tobacco and say, the DNC:"

Oops! Let me rephrase that, "...between Democrats screwing Big Tobacco and helping the DNC."

[Gabz]

Actually, Diana your first comment was closer to the point - because Philip Morris is in bed with them.

However the only ones getting screwed are smokers and the taxpayers who went along with this boondoggle.

What people fail to realize is that all of the annual payments are based solely upon cigarette sales, when sales drop, so do the MSA payments. That is why so many new companies have sprung up since the settlement, they didn't sign on and therefore don't (or should't) have to pay the additional 45cents per pack.

So what happened? Smokers started switching brands or finding alternatives and PM and others started seeing their sales eroding and the states started seeing the annual payments drop. So what happens then, states start raising cig taxes to make up for the shortfalls, smokers incresingly find other alternatives and PM starts making cushy deals in the various states to force all manufacturers, even ones not involved in the MSA to pay into it, in exchange for not opposing the increased excise taxes.

[Diana in Wisconsin]

Thanks for the clarification. It's a scam either way, that's for sure. ;)

[operation clinton cleanup]

I suppose it is to much to hope there was a clause in the settlement that allowed the tobacco companies to pull out if the money was not used as intended.

[AEMILIUS PAULUS]

Question" Where Has All the Tobacco Money Gone?"

Answer: Into the pockets of the politicians and their "friends." Demonize then profitize!

[jerry639]

And, just why did anyone think the government wants people to stop smoking? Or, for them to stop drinking? Without the taxes from tobacco and alcohol, the Feds and the states would be bankrupt in a matter of months.
All it has ever been is another way for government to collect more money. They never intended to use it for the purpose they claimed they would.

[Gabz]

I suppose it is to much to hope there was a clause in the settlement that allowed the tobacco companies to pull out if the money was not used as intended.

Far too much to hope for. In fact there is a clause in the settlement expressly forbidding the companies from having ANY say in how the money is spent. Additionally, they can neither pull out of the deal nor stop selling cigarettes until at least 2023.

[operation clinton cleanup]

they can neither pull out of the deal nor stop selling cigarettes until at least 2023.

Cant stop selling until 2023? Nothing like guaranteed tax revenue!

[Gabz]

Exactly.

And of course that is only if the original 25 years doesn't wind up off into perpetuity.

Many, many people are getting rich on this deal and many people stand to lose their nice cushy jobs if the money dries up.

[Garnet Dawn]

It's funny how She Lion and I came to the same conclusions, only I was blaming Tobacco Free Kids, the ACS and ALA instead of the RWJF and big pharma. They are all begninning to look the same.

When I recently learned this story was on Free Republic, I wanted to make some belated comments. "Where Has All the Tobacco Money Gone?" seems to me to be simply more anti propaganda from ABC, the star promoter for Tobacco Control recently. ABC is also the network running the "Quit to Live" anti-smoking special series all month long, as part of their antismoking campaign.

This so-called "news" story was only written to rehash what everyone already knows....the MSA money has been spent to support states' pet projects and budgets all across the country. The main purpose seems to be to supply another platform for further whining on the part of Anti-tobacco activists, to remind everyone how desperately they still need money and how Antis feel they were robbed of the '98 MSA settlement funds.

ABC, as a mouthpiece for the antis, only issued this story so that the Anti Health Organizations can continue to vocalize their greed for a share of the spoils from the still pending RICO trial and to keep the ball rolling for more tobacco tax hikes.

The series "Quit to Live" continues on "World News Tonight."

______________________________
Garnet Dawn - The Smoker's Club, Inc. - Midwest Regional Director
The United Pro Choice Smokers Rights Newsletter - http://www.smokersclubinc.com
Illinois Smokers Rights - http://www.illinoissmokersrights.com/
mailto:garnetdawn@comcast.net - Respect Freedom of Choice!

[SheLion]

When the lawmakers spend that money on race tracks, golf courses and town gardens, there is REALLY something wrong!!!

Darlene Brennan - The Smoker's Club, Inc. - New England Regional Director The United Pro Choice Smokers Rights Newsletter - http://www.smokersclubinc.com Maine Smokers Rights - http://www.geocities.com/shelioness/mainerights.html mailto:darlene@maine.rr.com - Respect Freedom of Choice!