For Immediate Release
Contact: Sheila McCant
LA House of Representatives
Office of Public Information
Phone: (225) 342-9795
FAX: (225) 219-4380
June 10, 1999
MCDONALD COAUTHORS TOBACCO SETTLEMENT BILLReaching an agreement on how to spend the state's $4.4 billion tobacco settlement windfall has proven difficult this legislative session, according to state Rep. Charles McDonald. Of the many plans formulated at the beginning of the session, only one remains, HB 1547, coauthored by McDonald.
That legislation would establish several funds with the tobacco settlement money: a Tuition Opportunity Program for Students (TOPS) Trust Fund, a Health Trust Fund and a Louisiana Fund.
"This has been a long, difficult process. There are many opinions on how to spend the money," said McDonald, D-Bastrop. "It is our job as legislators to work together to find the best solution. This can be accomplished during this session; if we legislators cooperate with each other we can reach a consensus before June 21."
In its present form, HB 1547 would require the state treasurer to deposit 15 percent of the total received in Fiscal Year 2000-01 in the TOPS fund and 15 percent in the Health fund. The following year, 20 percent would be deposited into each fund and 25 percent of the total would be deposited in Fiscal Year 02-03. Officials at the state Office of Student Financial Aid have submitted a specific request that 35 percent of the tobacco settlement funds go directly to the TOPS fund each year, which McDonald favors.
Appropriations from the TOPS fund would be used by that program exclusively. Appropriations from the Health Trust Fund would only fund the Louisiana Children's Health Insurance Program (LaCHIP) and a health research program to be coordinated by the state Board of Regents.
Tobacco settlement money left over after deposits to the TOPS and Health funds would be put into the Louisiana Fund. Louisiana Fund money may be appropriated for various health and education programs geared to the state's children, health-care for tobacco-related illnesses, general health-care related projects and programs and expenses related to the investment of the TOPS Trust and the Health Trust.
The bill is currently awaiting Senate Finance Committee action.
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