Gov. Mike Leavitt will play a key role in determining how a national tobacco control foundation will use an estimated $1.5 billion it could get out of the lawsuit against American cigarette manufacturers.
Utah's Republican governor serves as a member of the American Legacy Foundation's board of directors and heads the organization's investment committee. The foundation was formed in November 1998 as a result of the settlement agreement between 46 states and the tobacco industry. The nonprofit corporation aims to reduce youth tobacco consumption, exposure to secondhand smoke and cigarette use in general.The foundation anticipates receiving about $300 million a year for five years, though the amount could be significantly less if U.S. cigarette shipments continue to decline at the 9 percent rate they did last year. The initial payment made this spring was just under that figure, said Bill Furmanski, foundation spokesman.
Leavitt met recently with foundation officers to discuss investment proposals.
"The hope is to be able to develop an endowment that will perpetuate the earnings of the endowment," he said. The governor said the foundation could be among the largest 25 in the nation, aside from colleges and universities, within five years. The foundation's board, which includes governors, legislators, attorneys general, doctors and educators, must approve the investment plan.
Leavitt and the foundation also talked about governors' spouses, including Jackie Leavitt, launching a nationwide program to discourage pregnant women from using cigarettes. The project is still in the formative stages, Furmanski said.
The foundation's "Truth" campaign is currently finding its way into homes nationwide via television ads aimed at young people. The black and white TV spots, which are produced by teenagers, attempt to discourage children from smoking.
Utah itself expects to receive nearly $1 billion from the tobacco settlement, provided lagging cigarette sales and high-stakes litigation don't take a big bite out of the pie. Private attorneys who represented Utah in the lawsuit have filed a court claim for 25 percent of the settlement. In Florida, a class-action lawsuit involving 500,000 ill smokers could delay payments in the event of a crippling punitive award. Two Salt Lake women filed similar suits in Utah.
In March, the Utah Legislature divided the $26 million the state expects to receive this year. The money will go to tobacco prevention programs, cancer research, state drug courts, a children's health insurance plan and an endowment fund.
Utah's April payment from the tobacco companies was $15.8 million, including the 25 percent being held in federal court pending a ruling on the private attorneys' claim.
Tobacco control programs in the state also could obtain additional dollars from the American Legacy Foundation through its $35 million grant program.
You can reach Dennis Romboy by e-mail at romboy@desnews.com