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Ohio Lawmakers Move to Seize Tobacco Prevention Funds
April 9, 2008

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News Summary

In a showdown with the state's main tobacco-prevention charity, lawmakers approved legislation to seize most of the assets of the Ohio Tobacco Prevention Foundation, and the measure was swiftly signed by Gov. Ted Strickland.

NBC-4 in Columbus reported April 8 that state Senate and House lawmakers granted Strickland the power to take $230 million from the trust fund of the foundation after the charity's board voted to grant the money to a trio of charities that would fulfill its mission. The foundation's initial maneuver came in response to Strickland's announced plan to strip $230 million from the tobacco-prevention group to pay for an economic stimulus plan.

The legislation was tacked onto a measure allowing the state board of health to contract with plumbing inspectors.

The foundation's all-volunteer board vowed to fight the raid in court. "This endowment was set up outside state government for just this reason and, clearly, to reach into it is illegal and unconstitutional and I think immoral as well," said board member Rob Crane. "But, it's going to cost millions of dollars and years of legal effort to unravel this if the governor tries to go after money ...The governor's office has threatened the charities, the attorney general's office has threatened us with personal liability and now, today, the legislature has threatened our kids. I think we'll stand firm."

State Treasurer Richard Cordray said he is bound by law to enforce the legislation signed by the governor, liquidate the funds, and remove them from the foundation's control.

COMMENTS ON THIS ARTICLE:

Posted by Peggy Wood on 17 Apr 08 02:30 PM EDT
The Ohio Tobacco Prevention Foundation efforts are proven and nationally recognized. Their efforts have reduced smoking rates significantly, especially among youth. According to the Ohio Department of Health and CDC, OTPF's programs have reduced Ohio's tobacco use by more than 40 percent among youth and nearly 15 percent among adults. The OTPF-funded Quitline counseling coupled with nicotine replacement therapy has resulted in an amazing 39% quit rate. Over 50,000 Ohioans participate in OTPF funded programs. Last year, the governor led the charge to securitize 40 years worth of tobacco settlement money (selling $5 billion to investors for around .33 on the dollar), and allocated ZERO dollars back to tobacco prevention and control efforts. Now he as attempted to dissolve a $270 million foundation (whose money, by the way, is NOT in the state treasury) by attaching the amendment to a plumbing inspection bill? Reader - you are educated enough to figure this one out on your own.

Posted by Cathy on 15 Apr 08 08:16 AM EDT
More information is needed for the average person who hasn't been following this. I have read several of the articles but don't understand...has there been mismanagement of the money? So, how effective are the programs these funds support? How much of the money will be wasted in the court conflict?

Posted by James A. Lewko on 14 Apr 08 11:15 AM EDT
I work in the Correctional Field and I have many friends in the Police Field and I hear about this all the time. The re-directing of funds from what they were proposed for to a totally different area. You see this done when funding runs out for one project so it is taken from another. It saves money but it is not the correct way to address the issue.

Posted by Stephen Buchness on 11 Apr 08 05:54 AM EDT
Politicians in Ohio desire to re-direct smoking settlement funds into areas totally unrelated to health care. They are joining the majority of other state legislatures in this misuse of designated funds. The tobacco settlement was awarded because of the increased cost of health care treatment caused by smoking. The proposed settlement was earmarked for prevention. While “big business” is often castigated for its dedication to profits, contracts are honored. The same cannot be said of autonomous government. Beware promises of health care made by legislative bodies who do not keep their end of a contract.

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