The State of Michigan Addicted To Tobacco Cash

The Detriot Free Press reports:

People are smoking less -- presumably a good thing for the health of Michigan and the nation.

But the trend could be bad for Michigan's budget because it could result in a cut of $30 million for college scholarships, health care for poor people and a new program to encourage high-tech investment.

The reason: two big tobacco companies, R.J. Reynolds Tobacco Co. and Lorillard Tobacco, are citing provisions in a settlement of health-related lawsuits to withhold a portion of this year's payments to Michigan and 45 other states.

The reduction would come because the companies have lost sales as smoking declines and as some smokers turn to cheaper products. It would cost all 46 states about $775 million.

R.J. Reynolds paid the states about $1.4 billion; Lorillard paid them a little more than $550 million. Industry leader Philip Morris USA made all of its $3.4-billion payment but is seeking to have that sum reduced.

Today, the Michigan Attorney General's Office is expected to announce findings of its review of the companies' rationale. Michigan could join 16 other states in contesting the reduction in payments.

"We're working diligently to ensure that all the money earmarked for Michigan comes to Michigan," said Nate Bailey, a spokesman for Attorney General Mike Cox.

Remember when the anti-tobacco zealots promised that all the money was going to treat tobacco victims and educational campaigns against tobacco? I guess tobacco companies can't get away with whopping lies like government.