: COUNTY RECEIVES TOBACCO FUND SURPRISE

[Guest guest]

This money can be used for EMS buildings, vehicles, supplies, and personnel

salaries. It can be used for any type of EMS Serivce ie; Gov. , private, etc. It

can also be used for RACs.

Ron

County gets surprise $461,907 in tobacco funds

By BUD CHAMBERS/Staff Reporter Saturday, July 8, 2006 10:00 AM CDT

A $461,907 check " is in the mail " targeted for Washington County's tobacco

law suit settlement account, part of surprise payments totaling almost $300

million to cities, counties and hospital districts all across the state, says

State Comptroller Carol Keeton Rylander.

When the tobacco industry reached an agreement with the state of

Minnesota, a clause in the Texas tobacco settlement increased payments from

tobacco companies to state entities by several billion dollars.

" Texas cities, counties and hospital districts that provide care to

indigent patients will receive just under $2.3 billion over the next five

years, " Rylander said.

" The checks mailed today (Thursday) are the first down payment, " Rylander

emphasized, noting that while the Texas legislature is slated to determine how

to spend " the state's $15 billion share, " they will have no control over a

distribution of funds designated for local entities.

County Judge Dorothy was totally caught by surprise with the news

the county would be in receipt of almost $500,000 by early next week.

" It's a complete surprise to me, " said, noting it was difficult to

believe no one among all of the South Texas county judges and commissioners who

gathered for an annual conference in Galveston last week was aware of this

week's pleasant pleasant health care news.

added that if anybody in that group knew of this, it would have

spread like wildfire and been a major conversation piece in Galveston.

" We certainly welcome it S and we'll put it in the bank and make the best

possible use of it to meet health care-related needs, " she said, but then noted:

" I'm not sure I'll believe this until I see the check. "

County Treasurer Norman Draehn was also unaware earlier Friday of the

impending arrival of another large check from the state's tobacco suit

settlement.

" I'll check. Maybe the judge has a letter, " he suggested.

But she didn't; surprised than even the county's constant contacts at

Texas Association of Counties (TAC) had provided no warning whatsoever.

" I had no clue this was coming, " emphasized.

Altogether, according to Rylander, more than 300 checks have been mailed

out to cities, counties and hospital districts across Texas. Amounts were

determined by several factors, including 1990 U.S. Census data and " providers'

legal responsibility for indigent health care. "

An additional $1.85 billion - to be received from settlement during the

next four years - will be deposited to a Permanent Trust Account.

Income from this permanent fund will be distributed pro-rata to the

cities, counties and hospital districts providing indigent health care in

proportion to their amount of unreimbursed health care expenditures.

In addition to Washington County's $461,907 first payment from this

additional clause in the tobacco industry settlement, other neighboring

county/hospital district payments were, as follows:

? Brazos County, $2,152,213.

? Waller County, $413,092.

? Fayette County, $354,899.

? Austin County, $350,254.

? Grimes County, $332,522.

? Burleson County Hospital District, $240,632.

? Lee County, $227,015.

Examples of the very largest checks were to the following health care

providers: Co. Hospital District, nearly $50 million; Dallas Co. H.D.,

$33 million; Tarrant Co. H.D., $21 million; University Health System, San

, $21 million; R.E. on General H.D., El Paso, more than $10

million; and City of Austin, more than $8 million.

Rylander said that even though the signature on these checks is hers,

several other Texas officials are the ones responsible for the negotiations that

resulted in the state benefiting from " a Most Favored Nation " provision in the

highly complex tobacco settlement.

The comptroller names State Sen. Bill Ratliff, House Speaker Pete Laney,

Rep. Rob Junell and the Texas Attorney General's Office as the primary people

behind this added payout from the state's tobacco law suit.

Simultaneous with this week's $300 million distribution, Rylander also

noted an annual distribution of $72.1 million is being made to three cities, 158

counties and 131 hospital districts - a 43 percent increase over the past year -

from a $2.2 billion Tobacco Settlement Permanent Trust Account.

Since that account was set up in April 2001, more than $205 million have

been distributed to local entities from the initial tobacco law suit phase.

While annual " trust account " payments under this continuing program have

been " five digit " amounts, a further check with treasurer Draehn on Friday

afternoon caused him to check the amount of the initial tobacco law suit payment

to Washington County back on Jan. 6, 1999.

Amazingly, it was for $461,907 - the identical amount as the new check the

Texas Comptroller now says is headed our way.