VENTURA, Calif.--(BUSINESS WIRE)--March 23, 2000-- An initiative effort was launched Thursday in Ventura County to ensure that millions of dollars received by the county through the National Tobacco Settlement are steered into health care programs.

The proposed November ballot measure guarantees that the county's share of tobacco settlement money -- nearly $250 million over 25 years -- would be used specifically to assist in the delivery of programs to meet the county's health care needs. Those needs include acute care for the elderly, working poor, children, and indigent; nursing and home-care services to the elderly; and immunization against disease for children not otherwise eligible for coverage. Community Memorial Hospital of San Buenaventura is organizing the initiative effort, which is expected to garner support from a wide array of health care advocates dedicated to seeing the Tobacco Settlement Fund spent on health care as it was intended. Organizers will rally health care providers and community groups countywide and begin gathering the more than 20,000 valid signatures needed to qualify the ballot measure as soon as next month. ``We believe the residents of Ventura County share our view that the tobacco settlement money should be dedicated to preserving the health care safety net from Simi Valley to Ventura, Ojai to Thousand Oaks,'' said Dr. Michael D. Bakst, executive director of Community Memorial Hospital. ``This initiative gives voters the opportunity to make sure that the intent of the historic tobacco settlement is upheld and that all residents benefit from it.'' While most jurisdictions in the United States are committing the settlement funds to health care programs, county governments are bound by no specific requirements in spending tobacco money. In fact, Ventura County supervisors have placed the first tobacco settlement installment -- $6 million last February -- into the general fund as a hedge against a potential county budget deficit. The proposed ballot measure would prevent tobacco money in Ventura County from being used for non-health programs, including paying government fines associated with billing problems in the county Health Department. ``The temptation by cash-strapped governments to channel millions of unrestricted dollars into curing budget shortfalls or non-health care programs is strong,'' said Bakst. ``In Los Angeles, officials have proposed using tobacco money to compensate victims in a police corruption scandal. In Orange County, supervisors have considered using the funds to offset bankruptcy debt and finance jail construction.'' ``Our fear is that supervisors in Ventura County, wrestling with financial woes and significant government fines, will direct tobacco settlement money away from where it's needed most -- the health care system in Ventura County,'' Bakst said. A poll commissioned by CMH in March found widespread support among registered county voters for directed spending of the tobacco settlement money on health care programs. Specifically, the initiative preserves the Tobacco Settlement Fund money for the following health care needs: Acute care programs and hospitalization to care for the elderly, working poor, children, indigent and other non-paying patients; Nursing and unskilled in-home care services to the elderly who can better be served in their own homes; Immunization against disease for children not otherwise eligible for coverage; Nursing scholarships to maintain a needed level of nursing care throughout Ventura County; Smoking prevention programs in school grades 7 to 12. A commission appointed by the supervisors will help ensure that the tobacco money is used for these programs. Commission members would include representatives from the boards or community advisory boards of each of the county's nine acute care hospitals and physicians serving as chiefs of staff at those hospitals. The county medical center will continue to receive its normal reimbursement for providing health care to poor and indigent county residents. The county medical center also will benefit from an expanded safety net that includes other acute care hospitals in the county. ``Although Ventura County supervisors are studying long-range use of the tobacco money, voters should have the power to issue a prescription for maintaining health care services for all county residents,'' Bakst said. ``This initiative gives them that power.'' Fact Sheet Background In November 1998, a settlement was reached between 46 states and other governmental entities and the tobacco industry to recover for financial losses, including the health care costs, related to the use of tobacco products. The National Tobacco Settlement (NTS) Agreement was calculated on the basis of the costs incurred by state and local governments -- and taxpayers -- associated with treating smoking-related diseases and conditions. Under the landmark multi-state civil settlement with the tobacco industry, more than $195 billion will be paid to state and local governments over the next 25 years. California's share is about $25 billion, with the state government receiving half and local governments dividing the other half. Ventura County is expected to receive an estimated $10 million per year, based on its population. The first installment of $6 million was paid to the county on Feb. 7, 2000. In spite of the origin of the settlement funds and the intent behind the settlement agreement -- to offset the health impacts of smoking - counties have no restrictions on how the funds are to be used. Most counties across the United States have decided to use all or most of the funds for health care and human services related programs, like anti-smoking education. The Ventura County Board of Supervisors has appointed a Tobacco Settlement Committee, chaired by Supervisor Judy Mikels, to determine how the money should be spent. There is no clear consensus within the board, however, on how the money should be spent over the life of the agreement. In the short term, supervisors have already agreed to hold the tobacco funds in the general fund to help offset a projected budget deficit for the fiscal year that begins in June. The Initiative Because counties have no restrictions on how the settlement funds are to be used, and because Ventura County supervisors have already demonstrated their willingness to use the funds for non health care-related purposes, the Ventura County initiative to safeguard the tobacco settlement money has been established to direct how the county spends the money it will receive each year for the next 25 years. This initiative will ensure that virtually all of the money -- both now and in the future -- will be used for health care. The initiative specifically funds the delivery of needed health care programs including: immunization for children not otherwise eligible for coverage, acute care programs and hospitalization to care for the elderly, working poor, children, and indigent; nursing and unskilled home care for the elderly; nursing scholarships to maintain a needed level of nursing care throughout Ventura County; and smoking prevention programs in school grades 7 through 12. A commission appointed by the supervisors will help ensure that the tobacco money is used for these programs. Commission members would include representatives from the boards or community advisory boards of each of the county's nine acute care hospitals, and physicians serving as chiefs of staff at those hospitals. This initiative declares that the tobacco settlement money should be safeguarded and not used for any other purpose than helping satisfy the health needs of county residents. In fact, there is a specific prohibition against the county using these funds for retiring debt service, paying fines and acquiring or improving property. The initiative effort is being launched by Community Memorial Hospital of San Buenaventura, a leading health care provider. Other county health care providers have signaled their support for the initiative, which proponents hope to place on the general election ballot in November. Proponents must gather 20,817 valid signatures to qualify the measure for the November ballot.

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