Attorney General Russell Coleman announced that Kentucky has received $94.4 million for this year’s Tobacco Master Settlement Agreement (MSA) payment.
The commonwealth has received $2.96 billion from the nationwide agreement with cigarette manufacturers since 1998, according to the attorney general’s office.
“The historic Tobacco Master Settlement Agreement showed us how state attorneys general can shape national policy and deliver for those we serve. Once again, I’m proud to bring home these resources to invest in Kentucky and our rural communities,” Coleman said. “Raising tobacco is a vital part of Kentucky’s heritage and my own upbringing, and it remains a strong feature of our economy to this day.”
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 addition to the annual compensation, the MSA works to reduce underage smoking and decrease new smokers.
Kentucky designated half of the funds for agricultural diversification, with grants being 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. 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. Kentucky will continue to receive payments from participating manufacturers each year they sell cigarettes in the United States.
Assistant Attorneys General Michael Plumley and Andrew Eveslage administer the MSA for the attorney general’s office, ensuring that cigarette manufacturers perform their responsibilities and that Kentucky gets its share of funds under the agreement.
By Ken Howlett, News Director
Contact Ken at ken@k105.com
