Health Advocates Concerned About New York Governor’s Plan To Use Tobacco Settlement Money To Balance Budget

New York Gov. George Pataki (R) has proposed using some of the state's portion of the national tobacco settlement to balance the state budget, prompting concerns among health care advocates about the state's ability to fund several programs that help low-income residents obtain health care services, the Albany Times Union reports. Under the plan, the state would issue approximately $4 billion in bonds that it would pay back using up to $8 billion in tobacco settlement funds. The bonds would be sold in "stages"; $2 billion in bonds would be sold this fiscal year, and another $2 billion could be sold after March 31. The proposal is part of Pataki's attempt to offset a potential $2 billion budget deficit this year, the Times Union reports. Pataki's plans were "[i]mmediately decried" by health care advocates, who said the plan would "throw into question" how certain programs receive funding. Jennifer Cunningham, executive director of Service Employees International Union New York State Council, a group that represents health care workers in the state, and Jeannie Cross of the Healthcare Association of New York State said that the tobacco settlement funds go toward "vital health care programs" for uninsured children and families, adding that the Pataki administration has failed to explain where such programs would find future funding. Timothy Nichols of the American Lung Association said he is "worried" that New York's "already under funded" tobacco control program would lose funds altogether under the proposal. State Budget Director Carole Stone said health programs could receive future funding in part from money derived from Empire Blue Cross Blue Shield's conversion to a for-profit insurer. According to the Times Union, it is "not clear" whether the state Legislature will support Pataki's plan, which the governor wants approved by next week. Members of the Republican-controlled Senate on Tuesday said they would vote in favor of the plan, the Times Union reports. Members of the Democrat-controlled Assembly, however, said they want to examine Pataki's full budget plan in January before addressing the bond issue, a spokesperson for Assembly Speaker Sheldon Silver (D) said (Odato, Albany Times Union, 12/11).