Nevada to get extra tobacco funds

Tuesday, May 25, 1999 | noon

CARSON CITY -- For its efforts in helping to secure the national tobacco settlement, Nevada will receive $88.7 million in addition to its award of $1.2 billion over 25 years.

Of the total $246 billion received by the states from tobacco companies in a settlement over health care costs, $8.6 billion was set aside to reimburse states for their individual legal efforts in support of the suit.

A panel of former attorneys general decided each state's entitlement, and Nevada was awarded $88.7 million, a little more than 1 percent. The extra money will be paid over a nine-year period starting in 2009, according to Senior Deputy Attorney General Anne Cathcart.

Nevada's relatively low share was because the state had sued the companies but the case never went to trial. States receiving higher percentages, such as Washington which received 5 percent, had gone to trial and had played a major role in negotiating the settlement.

Cathcart said the extra money would come to the state with no strings attached.

Nevada is to receive an estimated $48 million a year for 25 years from its $1.2 billion share of the total settlement.

Gov. Kenny Guinn has proposed using 50 percent of the settlement for college scholarships.

archive