tobacco money

Emily Deshazer / Topeka Capital-Journal

Over the past 18 years Kansas has been paid slightly more than $1 billion by tobacco companies, officials said Monday. As The Topeka Capital-Journal reports, the money has come from annual payments to compensate for the health consequences of smoking. The money came as part of a 1999 legal settlement to resolve claims by 45 states, including Kansas.

The Wichita Eagle

If you live in Kansas, you might have heard the phrase “tobacco securitization” lately. It’s an idea that could help ease the burden from the state’s $290 million budget hole, reports The Wichita Eagle.

Governor Sam Brownback loves the idea. But what is it?

AP photo

The state of Kansas has been facing the prospect of losing $60 million in annual tobacco payments. The money currently funds children’s programs such as early childhood development and reading comprehension.

Tobacco settlement funds were earmarked for children’s programs in Kansas.  The money was to be vetted by the 15-member Kansas Children’s Cabinet.  The intent was to channel the funds toward “innovative” new programs that would supplement, rather than supplant, those already paid for by the state general fund according to The Topeka Capital-Journal.

15 years ago 46 states and the nation’s major tobacco companies came to a multi-billion dollar settlement.  The purpose of the action was to ultimately reduce smoking.