Date: Fri 19-Feb-1999

Publication: Bee

Author: CURT

Quick Words:

tobacco-Rowland

Full Text:

Lawmakers Criticize Budget Plans For Tobacco Money

By Diane Sarponi

Associated Press

HARTFORD -- Some state aid for schools and towns is riding on when and if the

state receives millions of dollars expected for settling its lawsuit against

tobacco companies.

Part of Gov John G. Rowland's budget -- including municipal aid and schools --

assumes the state will get $300 million over the next two years, even though

the state has not yet received any of that money.

The governor's budget chief said the budget will balance in case there is a

one-year delay in getting the money, or if the federal government claims some

of the money.

After the first year, however, some new numbers would have to be crunched to

keep the budget in line if all the tobacco money does not come through, said

Marc Ryan, secretary of the governor's budget office.

"If we were negatively impacted by any federal action, it would be incumbent

upon us to go back and try and determine what new programs, what existing

programs, we would have to curtail that are being paid by the tobacco

settlement," Mr Ryan said Thursday.

Democratic leaders questioned the wisdom of funding so many programs with

tobacco money not yet in hand. Others criticized Rowland for not spending the

money on health and anti-smoking programs.

"I haven't gotten the check," said House Majority Leader David Pudlin (D-New

Britain). "If the money is not here now -- and in fact it's not yet resolved

how much of it the federal government is going to try to take back -- I'd be

wary of building a budget on the tobacco settlement."

The federal government asserts it should be able to take tobacco settlement

money to make up for Medicaid money it has paid out over the years to treat

sick smokers. Their claim would be about half of Connecticut's share.

President Clinton's budget assumes the federal government will pocket $18.9

billion through 2004 from all the states sharing in the tobacco settlement.

Mr Ryan said he expects the state will have the money by June of next year,

but the tobacco money has been budgeted conservatively, just in case.

The governor plans to spend only half of an expected $165.8 million in

1999-2000. Fifteen percent would be invested and the rest would be held over

to the next year.

The second year of the two-year budget, however, makes up for it. After

investing 15 percent of an expected $133.5 million, the rest of the money and

the money left over from the previous year would be spent.

A shortfall could create a fiscal domino effect from state agencies to local

schools and town halls.

Rowland has earmarked $50 million of the tobacco money for municipal aid and

$87 million for education, including $31 million for direct aid to schools in

2000-2001.

These programs are dear to lawmakers and municipal leaders around the state.

Municipal leaders rely on state aid to keep property taxes low and to keep

local budgets in balance.

"If the tobacco money doesn't come for another year, what happens to their

budgets? I think that's a major stumbling block," said House Speaker Moira

Lyons (D-Stamford).

Attorney General Richard Blumenthal said he would fight any attempt by the

federal government to take some of Connecticut's $5 billion, 25-year tobacco

settlement.

"I don't believe the federal government will, at the end of the day, assert

that claim," Mr Blumenthal said.

He said the federal government will be more likely to claim the money if

states don't spend it on health and anti-tobacco programs.

Mr Blumenthal criticized Gov Rowland's plan to spend only $400,000 in two

years on anti-smoking campaigns. He said tobacco companies' money should be

used against them to stop future generations from lighting up.

Mr Blumenthal and anti-tobacco groups said ten percent of the money should be

invested for the future, and the remainder should be spent on health and

anti-smoking programs.

Ms Lyons said she approved of Gov Rowland's plan to spend some tobacco money

on education, since it would help children, but she said plans for municipal

aid do not meet the spirit of the tobacco settlement.

Mr Ryan said the anti-smoking goal can be accomplished in other ways. For

example, spending $10 million on computers for poor schools could include

screen savers with anti-smoking messages.

"It's far wiser to invest the money in the outcomes and betterment of the

lives of children than to think you're going to have a positive impact by

running ad campaigns," he said.