Pennsylvania has lost $19 million of the funds it was supposed to receive from the tobacco industry, because the Pennsylvania General Assembly failed to enact a spending plan for the money.
Pennsylvania is one of only three states that has not yet enacted a plan.
"It's getting ridiculous," said Michael Manzo, press secretary for Democratic Leader William DeWeese.
As legislators scramble to allocate the funds, there are many special interests groups and organizations that want a chunk of the money.
The General Assembly has received a host of proposals from different groups, Manzo said.
The Assembly was unaware of the penalty and ended the 1999-2000 legislative session without any action, Sandy Williams, spokesperson for Auditor General Robert Casey Jr., said.
"We just received our payment and realized that there had been a reduction," Williams said.
If preliminary legislation had been enacted by the June 30, 1999 deadline, the Commonwealth would have received a full payment.
Now the tobacco industry gets to keep the money, Williams said.
Williams Auditor General Casey is really calling on the state legislator to enact a spending plan," she said.
Casey is not the only one calling on Gov. Tom Ridge and the General Assembly to work together to pass legislation concerning the tobacco settlement money.
In a letter written to Gov. Ridge, DeWeese, Democratic Whip Mike Veon and Democratic Caucus Secretary Jeffrey Coy said they are willing to sit down with any party to negotiate tobacco settlement legislation.
They plan to reintroduce their legislative package that was first laid on the table in January 1999.
The plan has undergone some minor changes.
House Democrats have proposed that the funds be targeted to health care issues such as expanding prescription drug coverage for seniors, insuring the uninsured and helping hospitals with the cost of charity care.
The Commonwealth will still receive $11 billion in tobacco settlement funds over the next 25 years.
"There are a myriad of places we can spend this $11 billion windfall," Manzo said.
When the governor announces his annual budget on Feb. 13, there will be some debate on what will be done with the money, Manzo said.
"Everyone is at the table waiting for some sort of action," he said.



