The Kentucky Attorney General’s Office announced the commonwealth has received a $100 million-plus tobacco settlement payment.
As part of the Tobacco Master Settlement Agreement (MSA), Kentucky received $105,477,754. In total, the TMSA awarded Kentucky $2.7 billion in the 1998 settlement.
“As someone who spent his teenage years working in Logan County tobacco patches, this is a reminder of the enduring importance of this industry to our commonwealth. For more than two decades, Kentucky has put these funds to work supporting our farm families and helping our children live healthier and more productive lives,” Attorney General Russell Coleman said.
In 1998, Kentucky and 51 states and territories reached the MSA with major cigarette manufacturers. The historic agreement resolved state lawsuits against the tobacco companies for Medicaid and other health costs related to smoking.
In Kentucky, half of the funds are allocated for agricultural diversification through grants distributed by the Kentucky Department of Agriculture. The remaining funds are split evenly between the Early Childhood Development Fund and the Kentucky Health Care Improvement Fund, according to the attorney general’s office. The General Assembly’s Tobacco Settlement Agreement Fund Oversight Committee oversees all agricultural grant application decisions and monitors expenditures under the other funds.
Under the settlement terms, participating cigarette manufacturers must make a yearly payment to the states based on an annually adjusted rate per number of cigarettes sold each year, the attorney general’s office said. Kentucky will continue to receive payments from participating manufacturers each year they sell cigarettes in the U.S.
By Ken Howlett, News Director
Contact Ken at ken@k105.com
