Auditor General, local experts agree on best use of tobacco settlement money

A month after listening to locals talk about the dangers of cutting the amount of tobacco settlement money that supports health programs, the state auditor general has issued a report supporting their stance.

On Thursday, Auditor General Jack Wagner released a special report with the results of five statewide public hearings about how the state should use money tobacco companies agreed to pay to settle a lawsuit brought by Pennsylvania and 45 other states to address health care costs associated with illnesses caused by tobacco use.

Mr. Wagner claims the General Assembly has diverted more than $1.34 billion in tobacco settlement money over the past few years to uses not allowed under 2001 legislation that lays out how the funds should be spent.

Among the uses of settlement money was about $121 million diverted to the state's teachers' pension fund, Mr. Wagner has said.

The report released Thursday summarizes testimony given in a public hearing held in Scranton on May 3, as well as at hearings held in Pittsburgh, Erie, Harrisburg and Philadelphia.

"The people who testified represent millions of Pennsylvanians, and they don't want settlement monies used to plug holds in the state budget as previously was done, or to fund a new loan program," Mr. Wagner said in a press release Thursday.

Robert Durkin, president of the Northeast Regional Cancer Institute, was one of several people who testified at Scranton's public hearing last month. He reiterated his concerns Thursday, saying that any cuts to health programs meant to address tobacco-related illnesses means a higher cost in the future.

"I think it's short-sighted not to spend money on prevention ... and cessation," he said, adding that putting money into those programs now "will pay dividends down the road."

Gary Drapek, president of United Way of Lackawanna and Wayne Counties, said he was not surprised by the auditor general's findings but said he does not know what effect the report may have on legislators and the governor.

"I'm optimistic that the Legislature will take a hard look at the report" and the testimony it summarizes, Mr. Drapek said. "The state might be in bad financial shape, but these cuts will only make things worse in the future."