County Supervisors Postpone Decision on Tobacco Settlement Funds

Source from:  By Danny Bernardini/The Reporter, Vacaville 12/07/2007 12/10/2007

Citing incomplete staff reports and concerns about the effects of their decision, county supervisors postponed a decision Tuesday on whether to use tobacco settlement money to help fund a $58 million construction project. Instead, the Solano County Board of Supervisors asked staff to prepare a more in-depth report before they make a decision on funding for the Twin Campus Project - a new health and social services building in Vallejo and a laboratory in Fairfield. The board will revisit the issue in January. The project is expected to cost $58.3 million. Of that money, $15 million already has been secured. Around $43 million would still need to raised. The funding source in question is the Tobacco Endowment of $53.5 million that Solano County has received from settlement in 1998 of a class-action lawsuit. Supervisor Mike Reagan said that after tobacco corporations raised their prices, money started to come in. Prior boards of supervisors made it a priority for that money to be allocated for treatment for smokers, for alcohol and drug rehabilitation and other health services. The interest alone on the endowment, nearly $3 million annually, is used to help fund many nonprofit organizations around the county, Reagan said. That is one of the issues Supervisor John Silva had at Tuesday's meeting. He was concerned that because the allocation was voted on by prior boards, there should be more discussion before voting on such a move. "The issue that Silva was bringing up was that we get $2 million or $3 million in interest to give to nonprofits," Reagan said. "He wanted to have some sort of a commitment that we would continue. He now wants a list of what is funded." Supervisor Jim Spering also had concerns about changing board policy and had questions about the staff's presentation. "John (Silva) was right on the money when he said this was more a policy question rather than a financing issue," Spering said. "There were more questions raised than answers. What is being spent? What is the shortfall? I want something that says 'Here are the costs. Here are the programs that will be in danger.' " He said their decision on what to do with the tobacco money may shape how they make similar decisions in the future. "I'm concerned about setting precedent," Spering said. "It just doesn't apply to one funding source. The decision we make may have implications on the future." Enditem