Conflict over tobacco foundation dollars escalates

As reported on April 7th in the Ohio Health Policy Review, the Ohio Tobacco Prevention Foundation voted to move $190 million of its endowment to three non-profit organizations.  This action was to prevent the Governor and Ohio General Assembly from using those funds for an economic stimulus initiative.

On Tuesday, April 8th, the Ohio General Assembly responded by attaching an emergency measure to a bill on plumbing inspections (Source: "Lawmakers too quick for tobacco foundation," The Columbus Dispatch, April 9, 2008).  This measure prevents the Foundation from shifting funds from its account and gives Ohio's state treasurer authority to liquidate that account and then return $40 million back to the Trust Fund.  Speaker Husted commented that legislators had to act quickly because of the "irresponsible actions" of foundation trustees.

According to the Columbus Dispatch's article, The Campaign for Tobacco-Free Kids condemned the action. Its President, Matthew L. Myers, wrote "In 1998, Ohio's leaders made a public commitment to use a portion of the hundreds of millions of dollars the state would receive under the state tobacco settlement to prevent kids from smoking and help smokers quit. Today's decision … breaks that promise."

On April 9th, the Foundation responded by filing a motion in court to void the emergency law passed on April 8th and to obtain a temporary restraining order to prevent the state treasurer from liquidating the Foundation's account (Source: "Anti-smoking groups sues to stop state from appropriating its funds," The Columbus Dispatch, April 10, 2008).  The suit argues that the action is invalid because the legislators included it in an unrelated piece of legislation.

This morning, the two sides presented their arguments to Judge David Fais of the Franklin County Common Pleas Court.  Judge Fais indicated that he expected to issue a ruling by 5 p.m. today (Source: "Judge to rule on tobacco money move today by 5 today," The Columbus Dispatch, Up to the Minute, April 10, 2008).