1997 December ESTIMATES OF EACH STATE'S SHARE Of MONEY FROM THE PROPOSED TOBACCO RESOLUTION Tre Proposed Tobacco Resolution requires tobacco manufacturers t0 pav 5368.5 Tne billion in the first 25 vears after Congress passes tn@ necessary legt5t Iation attorneys number oi recommendations for (he way who negotiated the Resolution have made genera which the money should be spent, and tney have suggested that Congress send much of the Specifically, the September 12 997 Report of the Attorneys General money t0 the states. Allocation Subcommitee concluded that in the initial 25 years, 5193_ billion snould be made available to the states, paid as follows: 57 billion Upon signing the legisiation billion In vear 54.5 billion 55 billion billion billion through 25 EBbillion In years Total 5193. billion recommend that the total The attorneys be divided among the states based on two Benera variables smoking-related Medicaid costs and one thar estimates one tnat estimares state other claims against the tobacco industry- Combining these, the Subcommittee state developed two allocation proposals that differ only slightly, because one considers disproportionate share hospital IDSH) costs under Medicaid and one does not: The altached money the attorneys general suggest should g0 to each state cnan; whicn shows the amounts the allocation that does not consider DSH costs. relies on The first column of the attached chart presents the Allocation Subcommittee' proposed percentage share for each state Or territory of the total available: Each state or share can be calculated merely by multiplying the percentage in column one by the (erritory' second column of the attached be paid in By way Of example tne given vear. amouniIO chart calculates jurisdiction '$ share of the nifa payment that will be due upon tne signing each of the legislation implementing the Proposed Resolution The Iast column shows the attorneys general' estimates ol each jurisdiction' share of the total payments over 25 Years should be kept in mind that these are only estimates_ which could change signilicantly based on Congress" actions; Also the amounts may increase because every year Jn which is the greater of the increase in the Consumer Price Index or inflation iactor applied The amounts could also decrease tobacco sales volumes decrease_ percent: taking no position on how the amounis the tobacco industry Finally, pays The chart reflects recommendations of the under the Proposed Resolution should be divided attorneys general, not the tobacco industry. TNWL 0051963
December 1997 ESTIMATES OF EACH STATE'S SHARE Of MONEY FROM THE PROPOSED TOBACCO RESOLUTION Tre Proposed Tobacco Resolution requires tobacco manufacturers t0 pav 5368.5 billion in the first 25 vears after Congress passes tn@ necessary legt5t Iation Tne attorneys genera who negotiated the Resolution have made number oi recommendations for (he way which the money should be spent, and tney have suggested that Congress send much of the money t0 the states. Specifically, the September 12 997 Report of the Attorneys General Allocation Subcommitee concluded that in the initial 25 years, 5193_ billion snould be made available to the states, paid as follows: 57 billion billion 54.5 billion 55 billion billion billion EBbillion Upon signing the legisiation In vear In years through 25 Total 5193. billion The attorneys Benera recommend that the total be divided among the states based on two variables one tnat estimares state smoking-related Medicaid costs and one thar estimates state other claims against the tobacco industry- Combining these, the Subcommittee developed two allocation proposals that differ only slightly, because one considers disproportionate share hospital IDSH) costs under Medicaid and one does not: The altached cnan; whicn shows the amounts money the attorneys general suggest should g0 to each state relies on the allocation that does not consider DSH costs. The first column of the attached chart presents the Allocation Subcommittee' proposed percentage share for each state Or territory of the total available: Each state or (erritory' share can be calculated merely by multiplying the percentage in column one by the amouniIO be paid in given vear. By way Of example tne second column of the attached chart calculates each jurisdiction '$ share of the nifa payment that will be due upon tne signing of the legislation implementing the Proposed Resolution The Iast column shows the attorneys general' estimates ol each jurisdiction' share of the total payments over 25 Years should be kept in mind that these are only estimates_ which could change signilicantly based on Congress" actions; Also the amounts may increase because every year Jn inflation iactor applied which is the greater of the increase in the Consumer Price Index or percent: The amounts could also decrease tobacco sales volumes decrease_ Finally, the tobacco industry taking no position on how the amounis pays under the Proposed Resolution should be divided The chart reflects recommendations of the attorneys general, not the tobacco industry. TNWL 0051963