Tobacco.org

• Budget Woes Expose Rifts Over Tobacco Money  

At least 17 states, including California and New York, have already sold bonds based on future tobacco settlement payouts and spent some or all of the money before they have it, according to the National Conference of State Legislatures. Moreover, cigarette taxes are also less lucrative than they were a decade ago because cigarette sales in the United States have dropped by more than 20 percent.

Nonetheless, two weeks into the year, conservative, tobacco-friendly states like Kentucky, Georgia and Mississippi are considering sizable tax increases on cigarettes, while some with liberal Democratic governors -- including Michigan, Ohio and New Mexico -- are looking at ways to redirect tobacco settlement money to close budget gaps or for economic stimulus packages.

Florida lawmakers have considered both options.

Jump to full article »