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Ohio Tobacco Foundation Asks Court to Block Money Grab
April 10, 2008

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News Summary

The Ohio Tobacco Prevention Foundation has asked a county court to issue a temporary restraining order blocking the state from raiding its endowment to pay for an economic-stimulus plan, the Toledo Blade reported April 10.

The state legislature and Gov. Ted Strickland rushed through legislation this week to seize $230 million from the tobacco-prevention group's endowment, which was funded by the state's share of the 1998 nationwide tobacco settlement, after the foundation board voted to grant $190 million to three nonprofit groups.

The tobacco money has been targeted in Strickland's $1.57-billion plan to boost the Ohio economy.

The lawsuit asks the court to bar Ohio Treasurer Richard Coudray from releasing the funds in response to the "hastily drafted, 11th-hour" legislation, saying that the endowment is not controlled by the governor or lawmakers.

"These funds were explicitly placed outside of the state treasury … for the sole purpose of reducing tobacco use by Ohioans," according to the lawsuit. "If the treasurer is allowed to take any steps toward liquidation, irreparable harm would run not only to the plaintiff -- the board that administers the Endowment Fund -- but also to the citizens of Ohio who benefit from the foundation's public-health efforts."

"The governor is confident that the law he signed [Tuesday] is valid," said Strickland spokesman Keith Dailey. "State government has the authority to appropriate state funds. He and the legislature considered yesterday's action to be the final action to bring clarity to the issue. The foundation is intent on perpetuating the issue in the courts."

Read previous reports on this story:

COMMENTS ON THIS ARTICLE:

Posted by Peter on 11 Apr 08 09:55 AM EDT
This could very well happen. It happened in the state of Georgia.

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