Where That Tobacco Settlement Money Actually Goes

The loss of cigarette-tax revenue in various states is seen by many anti-smoking zealots as a victory in the nationwide campaign to bankrupt so-called big tobacco and, ultimately, ban smoking.

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. [emphasis added]

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.

Encouraging high-tech investment? WTF? So Michigan has, in effect, squandered its tobacco-settlement windfall -- which was supposed to go to anti-tobacco efforts -- and is now facing the prospect of lower tobacco-tax revenue leading to even less tobacco-settlement money, which wasn't being used for its intended purpose anyway.

A death spiral for assholes. Serves them right. More here.

Radley Balko's been covering the mis-use of tobacco-settlement monies for some time, and explains it well here.