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Indiana Set To Lose $60 Million From Tobacco Settlement

The money was supposed to be used for smoking cessation and other health programs.

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Photo: WFIU News

Indiana was supposed to receive more than $130 million from a tobacco settlement.

Indiana is poised to lose more than $60 million it was supposed to get from a landmark tobacco settlement in the 1990s.

That is money that was supposed to be used for health programs across the state.

Forty-six states reached a settlement with the four largest tobacco companies in 1998 that pays out more than $200 billion over 25 years. Indiana has received nearly $2 billion so far.

More than 40 other tobacco companies have since joined the settlement and part of the settlement requires states to ensure those companies are paying the correct amounts into escrow. An arbitrator last month ruled Indiana is one of six states that failed to adequately do so.

The ruling will cost the state nearly half of the $131 million it was supposed to receive next year.

Those are dollars that have helped fund tobacco cessation programs, community health centers and the state’s children’s health insurance program.

Rep. Charlie Brown, D-Gary, says Indiana needs to find ways to cover the lost dollars.

“We are constantly thumping our chests that we’ve got $2 billion in reserves,” he says. “Will we dip into that or will there be those drastic cuts?”

The Indiana Attorney General’s office says it will appeal the ruling.

Brandon Smith, IPBS

Brandon Smith, IPBS has previously worked as a reporter and anchor for KBIA Radio in Columbia, MO, and at WSPY Radio in Plano, IL as a show host, reporter, producer and anchor. Brandon graduated from the University of Missouri-Columbia with a Bachelor of Journalism in 2010, with minors in political science and history. He was born and raised in Chicago.

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