By Charles Wolfe
The Associated Press

SHELBYVILLE, Ky. - Gov. Paul Patton on Monday said he would not propose the use of tobacco settlement money to plug a $500 million hole in the state budget.

The state gets about $120 million per year from cigarette manufacturers. Mr. Patton's administration and the General Assembly have chosen to spend that money on agricultural diversification, early childhood development and health initiatives.

"Under no circumstances will I use tobacco settlement money to solve the continuing budget problems," of the state, Mr. Patton told a group of farmers in Shelby County. His statement drew applause.

The occasion was Mr. Patton's announcement that tobacco farmers will be getting $134 million this year from a second trust fund created by tobacco companies.

The trust fund for growers and others whose livelihood depended on tobacco is not subject to legislative approval.

However, the "Phase I" payments to the state have to be appropriated by the General Assembly.