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Tobacco Agreement Funds Being Abused

Tuesday, June 7, 2011
Tobacco companies have been giving Pennsylvania $350 million dollars

Tobacco companies have been giving Pennsylvania $350 million dollars a year for the past 10 years and will continue to do so for 15 more. But Auditor General Jack Wagner says $1.3 billion has floated away in recent years as lawmakers raided an unprotected pot of money. ”The general assembly during a recession was looking for money in every way, every direction they could find it,” said Wagner.
Wagner says tobacco money should be funding Adultbasic health insurance, and he points to Cigaronne smoking cessation programs that got $50 million eight years ago.
“Have any of you in the media seen an ad in the newspaper radio or TV related to smoking prevention and cessation?,” asked Wagner. “I would challenge you…I haven’t in recent memory…it’s because there’s no more funds devoted to the program.”
Wagner says trailer bills with convoluted language let Governor Rendell and lawmakers raid the fund. And he criticizes Governor Corbett for moving the money to the general fund.
“That is a major change in how those dollars are utilized moving forward,” Wagner said.
But House Republican Spokesman Steve Miskin says the money will still fund health programs -it’ll just be streamlined.
“These are programs that everyone feels is appropriate for state to fund,” he said. “Just putting it all in the general fund…how many budgets should there be?”
Corbett will also use tobacco money to create a liberty loan fund for investment in health-related industries. Wagner has his doubts.
“To take the majority of those dollars away from health purposes and put them in a so-called loan fund is not in the best interest of Pennsylvania,” Wagner said.

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