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E N Q U I R E R   L O C A L   N E W S   C O V E R A G E
Thursday, September 30, 1999

Tobacco money debate to begin


Lawmakers to hear Taft's schools plan

BY MICHAEL HAWTHORNE
Enquirer Columbus Bureau

        COLUMBUS — Now the real battle begins over Ohio's share of the national tobacco settlement, a $10.1 billion bonanza with no strings attached.

        Legislative hearings are scheduled to begin next week on Gov. Bob Taft's plan for the money, which would use most of the windfall to build public schools and pay for classroom computers.

        A bipartisan task force endorsed the governor's plan Wednesday after making minor changes. But groups left out or seeking a bigger share are expected to lobby fiercely for more sweeping revisions.

        With an unprecedented pot of cash up for grabs, legislative leaders are predicting it won't be easy to reach a deal before the end of the year.

        “I'm getting an ulcer just thinking about it,” said Jennifer Price, a lobbyist for health groups trying to maintain support for $1.5 billion to help prevent and stop smoking.

        Said Sen. Roy Ray, an Akron Republican who chairs the Senate Finance Committee: “The legislative process is one that invites change.”

        GOP conservatives already are taking issue with Mr. Taft, a fellow Republican, for not proposing that some or all of the money be returned to taxpayers. They're expected to offer amendments that would use tobacco cash to reduce state income tax rates.

        “The taxpayers deserve this more than the government does,” said Rep. Jim Jordan, R-West Liberty.

        While giving Ohioans billions of dollars sounds like a lottery jackpot, such a plan would put about $55 a year in each taxpayer's pocket.

        There were 7.3 million taxpayers in Ohio in 1997, according to the most recent figures available from the state Department of Taxation. Divide the tobacco money to be paid out over 25 years by that number, and you get $55.

        Mr. Taft and legislative leaders don't like the tax-cut idea. They say taxpayers would benefit if the state spent the tobacco payments on other things, including anti-smoking programs, medical research and school construction.

        The state's tobacco task force, controlled by Republicans, recommended that Democrats be included on various panels that will be set up to handle annual payments from the industry. But Democrats lost attempts to set aside more of the money for minority health programs. They also failed to win support for prescription drug coverage for senior citizens.

        Ohio is expected to get its first two payments from the tobacco settlement, totaling $445 million, next summer. Lawmakers will decide how that money and subsequent annual payments ranging from $349 million to $403 million will be spent.

        By proposing to spend most of the windfall on schools instead of health programs, the governor bowed to political realities. State leaders are under an Ohio Supreme Court order to improve the way schools are built and funded.

       



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- Tobacco money debate to begin
TRISTATE DIGEST


 
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