Fla. Tobacco Settlement Fund Threatened December 22, 2008
News Summary
Facing a $2.3-billion budget shortfall, Florida Gov. Charlie Crist is eyeing a $1.4 billion fund established by the state's 1997 settlement with the tobacco industry, but opponents say they will go to court to block any attempt to raid the fund, the Orlando Sentinel reported Dec. 19.
The Lawton Chiles Endowment Fund, named for the late Florida governor who launched the lawsuit against the tobacco industry, provides $55 million each year for children's health programs. But a special legislative session slated for January could include an attempt to drain up to $1 billion from the fund to close the state's budget gap.
"We certainly respect the legacy of the fund and the goal of the fund. Having said that, this is not a new issue that just came up," said House Rules Committee Chairman Bill Galvano. "We very well might go into those funds -- in fact, it's almost inevitable."
Steve Yerrid, a Tampa lawyer, is trying to enlist the aid of the legal team that worked on the original settlement deal to block any attempt to raid the endowment. Chiles' family also is threatening to sue and have the late governor's name taken off the fund if it gets drained.
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