This is the accessible text file for GAO report number GAO-04-518 entitled 'Tobacco Settlement: States' Allocations of Fiscal Year 2003 and Expected Fiscal Year 2004 Payments' which was released on March 19, 2004. This text file was formatted by the U.S. General Accounting Office (GAO) to be accessible to users with visual impairments, as part of a longer term project to improve GAO products' accessibility. Every attempt has been made to maintain the structural and data integrity of the original printed product. Accessibility features, such as text descriptions of tables, consecutively numbered footnotes placed at the end of the file, and the text of agency comment letters, are provided but may not exactly duplicate the presentation or format of the printed version. The portable document format (PDF) file is an exact electronic replica of the printed version. We welcome your feedback. Please E-mail your comments regarding the contents or accessibility features of this document to Webmaster@gao.gov. This is a work of the U.S. government and is not subject to copyright protection in the United States. It may be reproduced and distributed in its entirety without further permission from GAO. Because this work may contain copyrighted images or other material, permission from the copyright holder may be necessary if you wish to reproduce this material separately. Report to Congressional Requesters: March 2004: TOBACCO SETTLEMENT: States' Allocations of Fiscal Year 2003 and Expected Fiscal Year 2004 Payments: [Hyperlink, http://www.gao.gov/cgi-bin/getrpt?GAO-04-518]: GAO Highlights: Highlights of GAO-04-518, a report to congressional requesters Why GAO Did This Study: In the 1990s, states sued major tobacco companies to obtain reimbursement for health impairments caused by the public’s use of tobacco. In 1998, 46 states and four of the nation’s largest tobacco companies signed a Master Settlement Agreement (MSA) that requires the tobacco companies to make annual payments to the states in perpetuity as reimbursement for past tobacco-related health care costs. The MSA commits the tobacco companies to pay the states approximately $206 billion over the first 25 years. Some of the states have arranged to receive upfront proceeds based on the amounts that tobacco companies owe by issuing bonds backed by future payments. The Farm Security and Rural Investment Act of 2002 requires GAO to report annually on the amount of MSA payments states receive through fiscal year 2006. This third report provides information on the * payments the 46 states received in fiscal year 2003 and expect to receive in fiscal year 2004, and * states’ allocations of these funds to various program categories and changes from prior years. To conduct this study, GAO surveyed the 46 states. What GAO Found: The 46 states party to the Master Settlement Agreement expect to receive about $24.2 billion in fiscal years 2003 and 2004. States reported they received about $12.8 billion in fiscal year 2003 and expected to receive about $11.4 billion in fiscal year 2004. Over the three prior years—fiscal years 2000, 2001, and 2002—states also reported receiving a total of about $24 billion. These amounts include payments from tobacco companies and, for some states, the proceeds of the sale of bonds backed by payments tobacco companies will make in the future (securitized proceeds). Of the $12.8 billion states received in 2003, about $6.3 billion came from the tobacco companies and about $6.5 billion came from securitized proceeds. Similarly, of the $11.4 billion states expect to receive in 2004, about $5.2 billion will be payments from tobacco companies and $6.2 billion will be from securitized proceeds. The Master Settlement Agreement allows states to use their tobacco settlement payments for any purpose. States reported that they used the largest portions of the fiscal year 2003 payments to address budget shortfalls and to fund health-related programs. The portion allocated to meet budget shortfalls is expected to increase from 36 percent in fiscal year 2003 to 54 percent in fiscal year 2004. The portion allocated to health-related programs is expected to decline from 24 percent in fiscal year 2003 to 17 percent in 2004. Also, allocations for debt service on states’ securitized proceeds are expected to increase from about 2 percent in fiscal year 2003 to 7 percent in fiscal year 2004. www.gao.gov/cgi-bin/getrpt?GAO-04-518. To view the full product, including the scope and methodology, click on the link above. For more information, contact Lawrence Dyckman, 202- 512-3841, dyckmanl@gao.gov. [End of section] Contents: Letter: Results in Brief: States Expect to Receive about $24.2 Billion in MSA Payments and Securitized Proceeds in Fiscal Years 2003 and 2004: States Allocated the Largest Portions of their Funds to Cover Budget Shortfalls and Health-Related Programs: Appendixes: Appendix I: Objectives, Scope, and Methodology: Survey Methodology and Categorization of States' Allocations: Appendix II: Percent Allocation of MSA Payments for 46 States: Appendix III: States' Allocations of Combined MSA Payments and Securitized Proceeds for Fiscal Years 2000-2004: Appendix IV: State-Specific Information on Amounts of Master Settlement Agreement Payments and Securitized Proceeds Received and Allocated: Appendix V: GAO Survey on States' Allocations Fiscal Years 2003 and 2004 Master Settlement Agreement Payments: Appendix VI: GAO Contact and Staff Acknowledgments: GAO Contact: Acknowledgments: Tables: Table 1: MSA Payments and Securitized Proceeds States Reported Receiving in Fiscal Year 2003 and Are Expecting to Receive in Fiscal Year 2004: Table 2: Amount of Securitized Proceeds Received by States Prior to Fiscal Year 2003: Table 3: Allocation of States' Combined MSA Payments and Securitized Proceeds, Fiscal Year 2003: Table 4: Expected Allocation of States' Combined MSA Payments and Securitized Proceeds, Fiscal Year 2004: Table 5: Percentage of MSA Payments and Securitized Proceeds Allocated or Expected to Be Allocated to Various Categories, Fiscal Years 2003 and 2004: Table 6: Alabama's MSA Payment Allocations: Table 7: Alaska's MSA Payment Allocations: Table 8: Arizona's MSA Payment Allocations: Table 9: Arkansas's MSA Payment Allocations: Table 10: California's Allocations of MSA Payments and Securitized Proceeds: Table 11: Colorado's MSA Payment Allocations: Table 12: Connecticut's MSA Payment Allocations: Table 13: Delaware's MSA Payment Allocations: Table 14: Georgia's MSA Payment Allocations: Table 15: Hawaii's MSA Payment Allocations: Table 16: Idaho's MSA Payment Allocations: Table 17: Illinois's MSA Payment Allocations: Table 18: Indiana's MSA Payment Allocations: Table 19: Iowa's MSA Payment Allocations: Table 20: Kansas's MSA Payment Allocations: Table 21: Kentucky's MSA Payment Allocations: Table 22: Louisiana's MSA Payment Allocations: Table 23: Maine's MSA Payment Allocations: Table 24: Maryland's MSA Payment Allocations: Table 25: Massachusetts's MSA Payment Allocations: Table 26: Michigan's MSA Payment Allocations: Table 27: Missouri's MSA Payment Allocations: Table 28: Montana's MSA Payment Allocations: Table 29: Nebraska's MSA Payment Allocations: Table 30: Nevada's MSA Payment Allocations: Table 31: New Hampshire's MSA Payment Allocations: Table 32: New Jersey's Allocations of MSA Payments and Securitized Proceeds: Table 33: New Mexico's MSA Payment Allocations: Table 34: New York's Allocations of MSA Payments and Securitized Proceeds: Table 35: North Carolina's MSA Payment Allocations: Table 36: North Dakota's MSA Payment Allocations: Table 37: Ohio's MSA Payment Allocations: Table 38: Oklahoma's MSA Payment Allocations: Table 39: Oregon's Allocations of MSA Payments and Securitized Proceeds: Table 40: Pennsylvania's MSA Payment Allocations: Table 41: Rhode Island's MSA Payment Allocations: Table 42: South Carolina's MSA Payment Allocations: Table 43: South Dakota's Allocations of MSA Payments and Securitized Proceeds: Table 44: Tennessee's MSA Payment Allocations: Table 45: Utah's MSA Payment Allocations: Table 46: Vermont's MSA Payment Allocations: Table 47: Virginia's MSA Payment Allocations: Table 48: Washington's Allocations of MSA Payments and Securitized Proceeds: Table 49: West Virginia's MSA Payment Allocations: Table 50: Wisconsin's Allocations of MSA Payments and Securitized Proceeds: Table 51: Wyoming's MSA Payment Allocations: Figure: Figure 1: States' Allocations of Combined MSA Payments and Securitized Proceeds for Fiscal Years 2000-2001, 2002, and 2003 and Expected Allocations for Fiscal Year 2004: Abbreviations: MSA: Master Settlement Agreement: Letter March 19, 2004: Congressional Requesters: In the 1990s, states sued major tobacco companies to obtain reimbursement for health impairments caused by the public's use of tobacco. During 1997 and 1998, 4 states--Florida, Minnesota, Mississippi, and Texas--settled their lawsuits with the tobacco industry by negotiating independent agreements.[Footnote 1] In November 1998, four of the nation's largest tobacco companies--Philip Morris, USA;[Footnote 2] R.J. Reynolds Tobacco Company; Brown & Williamson Tobacco Corporation; and Lorillard Tobacco Company--negotiated and signed an agreement with the attorneys general of the remaining 46 states, the District of Columbia, and the five U.S. territories, thereby settling a number of lawsuits brought by these parties against the companies.[Footnote 3] This agreement is known as the Master Settlement Agreement (MSA). The MSA commits the tobacco companies to make annual payments to the 46 states in perpetuity as reimbursement for health care costs, such as Medicaid expenditures, related to tobacco use. These payments will total approximately $206 billion over the first 25 years.[Footnote 4] The MSA imposed no requirements on how states spend their payments. The Farm Security and Rural Investment Act of 2002 (the 2002 Farm Bill) requires GAO to report annually on payments made by tobacco companies for fiscal years 2002 through 2006 and how states use these funds. In addition, 13 of the 46 states have received substantial upfront proceeds based on the amounts that tobacco companies owe by issuing bonds backed by payments to be made in the future, a process known as securitization. This report also includes information about states' receipt and allocation of these securitized proceeds.[Footnote 5] This report is the third in a series of reports responding to the 2002 Farm Bill requirement.[Footnote 6] We also reported in June 2001 on states' receipt and use of MSA payments for fiscal years 2000 and 2001.[Footnote 7] This report discusses (1) the amount of payments, including securitized proceeds, received by the 46 states party to the MSA during fiscal year 2003, and the amount of payments these states expect to receive in fiscal year 2004; and (2) the states' allocation of these funds to various program categories for fiscal year 2003 and expected allocations for fiscal year 2004. To address our objectives, we surveyed state budget officials, or their designees, in each of the 46 states to obtain MSA payment and allocation information for fiscal years 2003 and 2004.[Footnote 8],[Footnote 9] We asked the states to categorize their MSA payment allocations for fiscal year 2003 and their expected allocations for fiscal year 2004 using 12 categories. We also asked how much the states did not allocate. In addition, we asked states if they securitized their payments and, if so, the amount of proceeds they received from securitization and the categories to which they allocated the securitized proceeds. Although we did not independently verify the accuracy of the information provided to us by the states, we performed some reliability testing and determined that the data were reliable enough for our purposes. In addition, we compared the data we obtained for fiscal years 2003 and 2004 with the payment and allocation information we collected from states for our earlier reports for fiscal years 2000 and 2001 combined, and for fiscal year 2002. We conducted our work from May 2003 through February 2004 in accordance with generally accepted government auditing standards. See appendix I for more information on our scope and methodology and for detailed definitions of the categories used in this report (categories include such areas as education, health, budget shortfalls, and debt service on securitized funds). Appendix II shows each state's share of the annual MSA payments, which are based on a fixed percentage identified in the MSA. Results in Brief: The 46 states party to the MSA expect to receive about $24.2 billion in MSA payments and securitized proceeds in fiscal years 2003 and 2004. These states reported receiving a total of about $12.8 billion in fiscal year 2003, and they expect to receive about $11.4 billion in fiscal year 2004. About half of these amounts will be MSA payments from the tobacco companies, and the other half will be securitized proceeds. In the three prior years--fiscal years 2000 through 2002--states also reported receiving a total of about $24 billion: about $19.4 billion in MSA payments from the tobacco companies and about $4.6 billion in securitized proceeds. States allocated the largest portions of their fiscal year 2003 tobacco settlement funds to address budget shortfalls and for health-related programs, and states expect the same to hold true for fiscal year 2004. States allocated 60 percent of their tobacco settlement funds to these categories in fiscal year 2003 and anticipate increasing the allocations to these categories to 71 percent in fiscal year 2004. Compared with fiscal year 2003, states in fiscal year 2004 expect to increase allocations to budget shortfalls and to decrease allocations to health-related programs. More specifically, for fiscal year 2003, states allocated about 36 percent of tobacco settlement funds to budget shortfalls and expected to allocate about 54 percent in fiscal year 2004. For health-related programs, states allocated about 24 percent in fiscal year 2003 and expected to allocate about 17 percent in fiscal year 2004. Overall, the portion of allocations going to budget shortfalls has been increasing and the portion going to health costs has been decreasing. States Expect to Receive about $24.2 Billion in MSA Payments and Securitized Proceeds in Fiscal Years 2003 and 2004: The 46 states party to the MSA reported receiving a total of about $12.8 billion in fiscal year 2003: about $6.3 billion in MSA payments from the tobacco companies and, for 5 of the states, about $6.5 billion in securitized proceeds. For fiscal year 2004, the 46 states are expecting to receive a total of about $11.4 billion: about $5.2 billion in MSA payments and, for 2 of the states, $6.2 billion in securitized proceeds. In fiscal years 2000 through 2002, states reported receiving a total of about $24 billion: about $19.4 billion in MSA payments from the tobacco companies and about $4.6 billion in securitized proceeds. Table 1 shows the amount of MSA payments and securitized proceeds each of the 46 states reported receiving in fiscal year 2003 and the amount each state expects to receive in fiscal year 2004. Table 1: MSA Payments and Securitized Proceeds States Reported Receiving in Fiscal Year 2003 and Are Expecting to Receive in Fiscal Year 2004: State: Alabama; Fiscal year 2003: MSA payments received: $118,558,077; Fiscal year 2003: Securitized proceeds received: $0; Fiscal year 2004: MSA payments expected to be received: $99,876,883; Fiscal year 2004: Securitized proceeds expected to be received: $0. State: Alaska; Fiscal year 2003: MSA payments received: $26,257,704; Fiscal year 2003: Securitized proceeds received: $0; Fiscal year 2004: MSA payments expected to be received: $21,400,000; Fiscal year 2004: Securitized proceeds expected to be received: $0. State: Arizona; Fiscal year 2003: MSA payments received: $106,926,757; Fiscal year 2003: Securitized proceeds received: $0; Fiscal year 2004: MSA payments expected to be received: $91,856,500; Fiscal year 2004: Securitized proceeds expected to be received: $0. State: Arkansas; Fiscal year 2003: MSA payments received: $60,067,457; Fiscal year 2003: Securitized proceeds received: $0; Fiscal year 2004: MSA payments expected to be received: $59,000,000; Fiscal year 2004: Securitized proceeds expected to be received: $0. State: California; Fiscal year 2003: MSA payments received: $474,066,000; Fiscal year 2003: Securitized proceeds received: $2,485,000,000; Fiscal year 2004: MSA payments expected to be received: $399,372,000; Fiscal year 2004: Securitized proceeds expected to be received: $2,000,000,000. State: Colorado; Fiscal year 2003: MSA payments received: $100,584,727; Fiscal year 2003: Securitized proceeds received: $0; Fiscal year 2004: MSA payments expected to be received: $87,700,580; Fiscal year 2004: Securitized proceeds expected to be received: $0. State: Connecticut; Fiscal year 2003: MSA payments received: $137,914,440; Fiscal year 2003: Securitized proceeds received: $0; Fiscal year 2004: MSA payments expected to be received: $113,000,000; Fiscal year 2004: Securitized proceeds expected to be received: $0. State: Delaware; Fiscal year 2003: MSA payments received: $28,734,700; Fiscal year 2003: Securitized proceeds received: $0; Fiscal year 2004: MSA payments expected to be received: $29,800,000; Fiscal year 2004: Securitized proceeds expected to be received: $0. State: Georgia; Fiscal year 2003: MSA payments received: $178,041,093; Fiscal year 2003: Securitized proceeds received: $0; Fiscal year 2004: MSA payments expected to be received: $146,123,673; Fiscal year 2004: Securitized proceeds expected to be received: $0. State: Hawaii; Fiscal year 2003: MSA payments received: $43,663,626; Fiscal year 2003: Securitized proceeds received: $0; Fiscal year 2004: MSA payments expected to be received: $38,619,584; Fiscal year 2004: Securitized proceeds expected to be received: $0. State: Idaho; Fiscal year 2003: MSA payments received: $26,653,835; Fiscal year 2003: Securitized proceeds received: $0; Fiscal year 2004: MSA payments expected to be received: $22,449,666; Fiscal year 2004: Securitized proceeds expected to be received: $0. State: Illinois; Fiscal year 2003: MSA payments received: $341,497,849; Fiscal year 2003: Securitized proceeds received: $0; Fiscal year 2004: MSA payments expected to be received: $269,747,300; Fiscal year 2004: Securitized proceeds expected to be received: $0. State: Indiana; Fiscal year 2003: MSA payments received: $148,000,000; Fiscal year 2003: Securitized proceeds received: $0; Fiscal year 2004: MSA payments expected to be received: $127,600,000; Fiscal year 2004: Securitized proceeds expected to be received: $0. State: Iowa; Fiscal year 2003: MSA payments received: $63,083,784; Fiscal year 2003: Securitized proceeds received: $0; Fiscal year 2004: MSA payments expected to be received: $56,400,000; Fiscal year 2004: Securitized proceeds expected to be received: $0. State: Kansas; Fiscal year 2003: MSA payments received: $61,169,272; Fiscal year 2003: Securitized proceeds received: $0; Fiscal year 2004: MSA payments expected to be received: $56,000,000; Fiscal year 2004: Securitized proceeds expected to be received: $0. State: Kentucky; Fiscal year 2003: MSA payments received: $130,829,140; Fiscal year 2003: Securitized proceeds received: $0; Fiscal year 2004: MSA payments expected to be received: $109,100,000; Fiscal year 2004: Securitized proceeds expected to be received: $0. State: Louisiana; Fiscal year 2003: MSA payments received: $165,482,878; Fiscal year 2003: Securitized proceeds received: $0; Fiscal year 2004: MSA payments expected to be received: $143,767,098; Fiscal year 2004: Securitized proceeds expected to be received: $0. State: Maine; Fiscal year 2003: MSA payments received: $56,320,959; Fiscal year 2003: Securitized proceeds received: $0; Fiscal year 2004: MSA payments expected to be received: $49,654,499; Fiscal year 2004: Securitized proceeds expected to be received: $0. State: Maryland; Fiscal year 2003: MSA payments received: $171,300,000; Fiscal year 2003: Securitized proceeds received: $0; Fiscal year 2004: MSA payments expected to be received: $149,000,000; Fiscal year 2004: Securitized proceeds expected to be received: $0. State: Massachusetts; Fiscal year 2003: MSA payments received: $300,036,966; Fiscal year 2003: Securitized proceeds received: $0; Fiscal year 2004: MSA payments expected to be received: $250,700,000; Fiscal year 2004: Securitized proceeds expected to be received: $0. State: Michigan; Fiscal year 2003: MSA payments received: $318,400,000; Fiscal year 2003: Securitized proceeds received: $0; Fiscal year 2004: MSA payments expected to be received: $273,900,000; Fiscal year 2004: Securitized proceeds expected to be received: $0. State: Missouri; Fiscal year 2003: MSA payments received: $166,919,334; Fiscal year 2003: Securitized proceeds received: $0; Fiscal year 2004: MSA payments expected to be received: $143,000,000; Fiscal year 2004: Securitized proceeds expected to be received: $0. State: Montana; Fiscal year 2003: MSA payments received: $31,166,018; Fiscal year 2003: Securitized proceeds received: $0; Fiscal year 2004: MSA payments expected to be received: $28,223,000; Fiscal year 2004: Securitized proceeds expected to be received: $0. State: Nebraska; Fiscal year 2003: MSA payments received: $43,158,793; Fiscal year 2003: Securitized proceeds received: $0; Fiscal year 2004: MSA payments expected to be received: $36,700,000; Fiscal year 2004: Securitized proceeds expected to be received: $0. State: Nevada; Fiscal year 2003: MSA payments received: $44,753,037; Fiscal year 2003: Securitized proceeds received: $0; Fiscal year 2004: MSA payments expected to be received: $38,168,550; Fiscal year 2004: Securitized proceeds expected to be received: $0. State: New Hampshire; Fiscal year 2003: MSA payments received: $48,900,000; Fiscal year 2003: Securitized proceeds received: $0; Fiscal year 2004: MSA payments expected to be received: $42,600,000; Fiscal year 2004: Securitized proceeds expected to be received: $0. State: New Jersey; Fiscal year 2003: MSA payments received: $283,700,000; Fiscal year 2003: Securitized proceeds received: $2,751,814,469; Fiscal year 2004: MSA payments expected to be received: $122,000,000; Fiscal year 2004: Securitized proceeds expected to be received: $0. State: New Mexico; Fiscal year 2003: MSA payments received: $43,759,134; Fiscal year 2003: Securitized proceeds received: $0; Fiscal year 2004: MSA payments expected to be received: $35,724,987; Fiscal year 2004: Securitized proceeds expected to be received: $0. State: New York; Fiscal year 2003: MSA payments received: $498,300,000; Fiscal year 2003: Securitized proceeds received: $0; Fiscal year 2004: MSA payments expected to be received: $334,000,000; Fiscal year 2004: Securitized proceeds expected to be received: $4,200,000,000. State: North Carolina; Fiscal year 2003: MSA payments received: $169,200,688; Fiscal year 2003: Securitized proceeds received: $0; Fiscal year 2004: MSA payments expected to be received: $155,479,000; Fiscal year 2004: Securitized proceeds expected to be received: $0. State: North Dakota; Fiscal year 2003: MSA payments received: $26,549,833; Fiscal year 2003: Securitized proceeds received: $0; Fiscal year 2004: MSA payments expected to be received: $22,972,067; Fiscal year 2004: Securitized proceeds expected to be received: $0. State: Ohio; Fiscal year 2003: MSA payments received: $368,998,102; Fiscal year 2003: Securitized proceeds received: $0; Fiscal year 2004: MSA payments expected to be received: $297,000,000; Fiscal year 2004: Securitized proceeds expected to be received: $0. State: Oklahoma; Fiscal year 2003: MSA payments received: $76,024,898; Fiscal year 2003: Securitized proceeds received: $0; Fiscal year 2004: MSA payments expected to be received: $72,571,034; Fiscal year 2004: Securitized proceeds expected to be received: $0. State: Oregon; Fiscal year 2003: MSA payments received: $85,254,750; Fiscal year 2003: Securitized proceeds received: $450,000,000; Fiscal year 2004: MSA payments expected to be received: $71,818,209; Fiscal year 2004: Securitized proceeds expected to be received: $0. State: Pennsylvania; Fiscal year 2003: MSA payments received: $416,918,000; Fiscal year 2003: Securitized proceeds received: $0; Fiscal year 2004: MSA payments expected to be received: $360,528,000; Fiscal year 2004: Securitized proceeds expected to be received: $0. State: Rhode Island; Fiscal year 2003: MSA payments received: $52,748,551; Fiscal year 2003: Securitized proceeds received: $0; Fiscal year 2004: MSA payments expected to be received: $46,876,000; Fiscal year 2004: Securitized proceeds expected to be received: $0. State: South Carolina; Fiscal year 2003: MSA payments received: $86,312,915; Fiscal year 2003: Securitized proceeds received: $0; Fiscal year 2004: MSA payments expected to be received: $74,995,918; Fiscal year 2004: Securitized proceeds expected to be received: $0. State: South Dakota; Fiscal year 2003: MSA payments received: $25,603,357; Fiscal year 2003: Securitized proceeds received: $278,045,000; Fiscal year 2004: MSA payments expected to be received: $23,772,672; Fiscal year 2004: Securitized proceeds expected to be received: $0. State: Tennessee; Fiscal year 2003: MSA payments received: $179,101,745; Fiscal year 2003: Securitized proceeds received: $0; Fiscal year 2004: MSA payments expected to be received: $147,800,000; Fiscal year 2004: Securitized proceeds expected to be received: $0. State: Utah; Fiscal year 2003: MSA payments received: $32,642,875; Fiscal year 2003: Securitized proceeds received: $0; Fiscal year 2004: MSA payments expected to be received: $27,674,200; Fiscal year 2004: Securitized proceeds expected to be received: $0. State: Vermont; Fiscal year 2003: MSA payments received: $30,629,527; Fiscal year 2003: Securitized proceeds received: $0; Fiscal year 2004: MSA payments expected to be received: $25,200,000; Fiscal year 2004: Securitized proceeds expected to be received: $0. State: Virginia; Fiscal year 2003: MSA payments received: $150,029,894; Fiscal year 2003: Securitized proceeds received: $0; Fiscal year 2004: MSA payments expected to be received: $126,206,153; Fiscal year 2004: Securitized proceeds expected to be received: $0. State: Washington; Fiscal year 2003: MSA payments received: $150,654,530; Fiscal year 2003: Securitized proceeds received: $517,905,000; Fiscal year 2004: MSA payments expected to be received: $124,000,000; Fiscal year 2004: Securitized proceeds expected to be received: $0. State: West Virginia; Fiscal year 2003: MSA payments received: $65,042,592; Fiscal year 2003: Securitized proceeds received: $0; Fiscal year 2004: MSA payments expected to be received: $56,000,000; Fiscal year 2004: Securitized proceeds expected to be received: $0. State: Wisconsin; Fiscal year 2003: MSA payments received: $153,923,150; Fiscal year 2003: Securitized proceeds received: $0; Fiscal year 2004: MSA payments expected to be received: $135,617,112; Fiscal year 2004: Securitized proceeds expected to be received: $0. State: Wyoming; Fiscal year 2003: MSA payments received: $18,448,472; Fiscal year 2003: Securitized proceeds received: $0; Fiscal year 2004: MSA payments expected to be received: $12,133,528; Fiscal year 2004: Securitized proceeds expected to be received: $0. Total; Fiscal year 2003: MSA payments received: $6,306,329,459; Fiscal year 2003: Securitized proceeds received: $6,482,764,469; Fiscal year 2004: MSA payments expected to be received: $5,156,128,213; Fiscal year 2004: Securitized proceeds expected to be received: $6,200,000,000. Sources: State budget offices or their designees. [A] The amounts of MSA payments received and expected by California and New York do not include MSA payments made to the counties and cities in those states. [End of table] Besides the six states that received or expect to receive securitized proceeds in fiscal years 2003 and/or 2004, eight states received securitized proceeds prior to fiscal year 2003. Two states, Alabama and Alaska, received securitized proceeds in more than one year. Table 2: Amount of Securitized Proceeds Received by States Prior to Fiscal Year 2003: State: Alabama; Securitized proceeds: Amount received: $50,000,000; Securitized proceeds: Fiscal year received: 2000. State: Alabama; Securitized proceeds: Amount received: $103,760,000; Securitized proceeds: Fiscal year received: 2002. State: Alaska; Securitized proceeds: Amount received: $93,000,000; Securitized proceeds: Fiscal year received: 2001. State: Alaska; Securitized proceeds: Amount received: $110,000,000; Securitized proceeds: Fiscal year received: 2002. State: Arkansas; Securitized proceeds: Amount received: $58,268,549; Securitized proceeds: Fiscal year received: 2002. State: Iowa; Securitized proceeds: Amount received: $579,596,212; Securitized proceeds: Fiscal year received: 2002. State: Louisiana; Securitized proceeds: Amount received: $1,069,510,894; Securitized proceeds: Fiscal year received: 2002. State: Rhode Island; Securitized proceeds: Amount received: $544,238,410; Securitized proceeds: Fiscal year received: 2002. State: South Carolina; Securitized proceeds: Amount received: $785,900,000; Securitized proceeds: Fiscal year received: 2001. State: Wisconsin; Securitized proceeds: Amount received: $1,275,002,400; Securitized proceeds: Fiscal year received: 2002. Total; Securitized proceeds: Amount received: $4,669,276,465. Sources: [Hyperlink, http://www.gao.gov/cgi-bin/getrpt?GAO-01-851] and [Hyperlink, http://www.gao.gov/cgi-bin/getrpt?GAO-03- 407]. [End of table] States Allocated the Largest Portions of their Funds to Cover Budget Shortfalls and Health-Related Programs: The 46 states reported that in fiscal year 2003, they allocated the largest portion of their combined MSA payments and securitized proceeds--36 percent--to budget shortfalls and the next largest portion--24 percent--to health-related programs. In fiscal year 2004, the states expected to allocate the largest portion of their funds--54 percent--to budget shortfalls and the next largest portion--17 percent- -to health-related programs. States' allocations to health-related programs peaked at 38 percent over fiscal years 2000 and 2001. Examples of these health-related programs receiving state allocations include Medicaid, the Children's Health Insurance Program, and cancer research and prevention. Also, allocations for debt service on securitized proceeds are expected to increase--from about 2 percent in fiscal year 2003 to about 7 percent in fiscal year 2004. Figure 1 provides more detail on states' allocations of their combined MSA payments and securitized proceeds for fiscal years 2000-2001, 2002, and 2003, and expected allocations for fiscal year 2004. Figure 1: States' Allocations of Combined MSA Payments and Securitized Proceeds for Fiscal Years 2000-2001, 2002, and 2003 and Expected Allocations for Fiscal Year 2004: [See PDF for image] Note: Percentages may not add up to 100 because of rounding. [A] We did not obtain data for budget shortfalls and debt service on securitized funds for fiscal years 2000-2001. [End of figure] Tables 3 and 4 show the percentage of the combined MSA payments and securitized proceeds that individual states allocated, and expected to allocate, to various categories in fiscal years 2003 and 2004, respectively. Table 3: Allocation of States' Combined MSA Payments and Securitized Proceeds, Fiscal Year 2003: Alabama; Budget shortfalls: 0%; Debt service on securitized funds: 11%; Economic development for tobacco regions: 0%; Education: 12%; General purposes: 7%; Health: 44%; Infrastructure: 0%; Payments to tobacco growers: 0%; Reserves/rainy day funds: 0%; Social services: 26%; Tax reductions: 0%; Tobacco control: 1%; Unallocated: 0%%. Alaska; Budget shortfalls: 0%; Debt service on securitized funds: 77%; Economic development for tobacco regions: 0%; Education: 0%; General purposes: 0%; Health: 6%; Infrastructure: 0%; Payments to tobacco growers: 0%; Reserves/rainy day funds: 0%; Social services: 0%; Tax reductions: 0%; Tobacco control: 17%; Unallocated: 0%. Arizona; Budget shortfalls: 0%; Debt service on securitized funds: 0%; Economic development for tobacco regions: 0%; Education: 0%; General purposes: 0%; Health: 100%; Infrastructure: 0%; Payments to tobacco growers: 0%; Reserves/rainy day funds: 0%; Social services: 0%; Tax reductions: 0%; Tobacco control: 0%; Unallocated: 0%. Arkansas; Budget shortfalls: 0%; Debt service on securitized funds: 8%; Economic development for tobacco regions: 0%; Education: 5%; General purposes: 0%; Health: 87%; Infrastructure: 0%; Payments to tobacco growers: 0%; Reserves/rainy day funds: 0%; Social services: 0%; Tax reductions: 0%; Tobacco control: 1%; Unallocated: 0%. California; Budget shortfalls: 83%; Debt service on securitized funds: 0%; Economic development for tobacco regions: 0%; Education: 0%; General purposes: 0%; Health: 17%; Infrastructure: 0%; Payments to tobacco growers: 0%; Reserves/rainy day funds: 0%; Social services: 0%; Tax reductions: 0%; Tobacco control: 0%; Unallocated: 0%. Colorado; Budget shortfalls: 52%; Debt service on securitized funds: 0%; Economic development for tobacco regions: 0%; Education: 13%; General purposes: 0%; Health: 27%; Infrastructure: 0%; Payments to tobacco growers: 0%; Reserves/rainy day funds: 1%; Social services: 1%; Tax reductions: 0%; Tobacco control: 6%; Unallocated: 0%. Connecticut; Budget shortfalls: 0%; Debt service on securitized funds: 0%; Economic development for tobacco regions: 0%; Education: 0%; General purposes: 100%; Health: 0%; Infrastructure: 0%; Payments to tobacco growers: 0%; Reserves/rainy day funds: 0%; Social services: 0%; Tax reductions: 0%; Tobacco control: 0%; Unallocated: 0%. Delaware; Budget shortfalls: 0%; Debt service on securitized funds: 0%; Economic development for tobacco regions: 0%; Education: 3%; General purposes: 3%; Health: 76%; Infrastructure: 0%; Payments to tobacco growers: 0%; Reserves/rainy day funds: 0%; Social services: 1%; Tax reductions: 0%; Tobacco control: 17%; Unallocated: 0%. Georgia; Budget shortfalls: 0%; Debt service on securitized funds: 0%; Economic development for tobacco regions: 42%; Education: 0%; General purposes: 0%; Health: 46%; Infrastructure: 0%; Payments to tobacco growers: 0%; Reserves/rainy day funds: 0%; Social services: 4%; Tax reductions: 0%; Tobacco control: 8%; Unallocated: 0%. Hawaii; Budget shortfalls: 0%; Debt service on securitized funds: 0%; Economic development for tobacco regions: 0%; Education: 0%; General purposes: 0%; Health: 35%; Infrastructure: 28%; Payments to tobacco growers: 0%; Reserves/rainy day funds: 24%; Social services: 0%; Tax reductions: 0%; Tobacco control: 12%; Unallocated: 0%. Idaho; Budget shortfalls: 92%; Debt service on securitized funds: 0%; Economic development for tobacco regions: 0%; Education: 0%; General purposes: 0%; Health: 2%; Infrastructure: 0%; Payments to tobacco growers: 0%; Reserves/rainy day funds: 0%; Social services: 1%; Tax reductions: 0%; Tobacco control: 2%; Unallocated: 3%. Illinois; Budget shortfalls: 0%; Debt service on securitized funds: 0%; Economic development for tobacco regions: 0%; Education: 0%; General purposes: 1%; Health: 64%; Infrastructure: 3%; Payments to tobacco growers: 0%; Reserves/rainy day funds: 0%; Social services: 0%; Tax reductions: 25%; Tobacco control: 2%; Unallocated: 5%. Indiana; Budget shortfalls: 14%; Debt service on securitized funds: 0%; Economic development for tobacco regions: 2%; Education: 0%; General purposes: 0%; Health: 23%; Infrastructure: 6%; Payments to tobacco growers: 0%; Reserves/rainy day funds: 0%; Social services: 16%; Tax reductions: 0%; Tobacco control: 12%; Unallocated: 28%. Iowa; Budget shortfalls: 0%; Debt service on securitized funds: 40%; Economic development for tobacco regions: 0%; Education: 0%; General purposes: 0%; Health: 60%; Infrastructure: 0%; Payments to tobacco growers: 0%; Reserves/rainy day funds: 0%; Social services: 0%; Tax reductions: 0%; Tobacco control: 0%; Unallocated: 0%. Kansas; Budget shortfalls: 39%; Debt service on securitized funds: 0%; Economic development for tobacco regions: 0%; Education: 12%; General purposes: 0%; Health: 13%; Infrastructure: 0%; Payments to tobacco growers: 0%; Reserves/rainy day funds: 0%; Social services: 36%; Tax reductions: 0%; Tobacco control: 1%; Unallocated: 0%. Kentucky; Budget shortfalls: 4%; Debt service on securitized funds: 0%; Economic development for tobacco regions: 43%; Education: 8%; General purposes: 0%; Health: 36%; Infrastructure: 5%; Payments to tobacco growers: 0%; Reserves/rainy day funds: 0%; Social services: 0%; Tax reductions: 0%; Tobacco control: 4%; Unallocated: 0%. Louisiana; Budget shortfalls: 0%; Debt service on securitized funds: 60%; Economic development for tobacco regions: 0%; Education: 4%; General purposes: 0%; Health: 5%; Infrastructure: 0%; Payments to tobacco growers: 0%; Reserves/rainy day funds: 0%; Social services: 1%; Tax reductions: 0%; Tobacco control: 0%; Unallocated: 30%. Maine; Budget shortfalls: 49%; Debt service on securitized funds: 0%; Economic development for tobacco regions: 0%; Education: 8%; General purposes: 0%; Health: 19%; Infrastructure: 0%; Payments to tobacco growers: 0%; Reserves/rainy day funds: 0%; Social services: 6%; Tax reductions: 0%; Tobacco control: 18%; Unallocated: 0%. Maryland; Budget shortfalls: 1%; Debt service on securitized funds: 0%; Economic development for tobacco regions: 0%; Education: 5%; General purposes: 10%; Health: 54%; Infrastructure: 0%; Payments to tobacco growers: 2%; Reserves/rainy day funds: 0%; Social services: 0%; Tax reductions: 0%; Tobacco control: 7%; Unallocated: 21%. Massachusetts; Budget shortfalls: 52%; Debt service on securitized funds: 0%; Economic development for tobacco regions: 0%; Education: 0%; General purposes: 1%; Health: 39%; Infrastructure: 0%; Payments to tobacco growers: 0%; Reserves/rainy day funds: 0%; Social services: 4%; Tax reductions: 0%; Tobacco control: 4%; Unallocated: 0%. Michigan; Budget shortfalls: 43%; Debt service on securitized funds: 0%; Economic development for tobacco regions: 0%; Education: 30%; General purposes: 0%; Health: 26%; Infrastructure: 0%; Payments to tobacco growers: 0%; Reserves/rainy day funds: 0%; Social services: 0%; Tax reductions: 0%; Tobacco control: 1%; Unallocated: 1%. Missouri; Budget shortfalls: 65%; Debt service on securitized funds: 0%; Economic development for tobacco regions: 0%; Education: 0%; General purposes: 2%; Health: 31%; Infrastructure: 0%; Payments to tobacco growers: 0%; Reserves/rainy day funds: 0%; Social services: 0%; Tax reductions: 0%; Tobacco control: 0%; Unallocated: 2%. Montana; Budget shortfalls: 0%; Debt service on securitized funds: 0%; Economic development for tobacco regions: 0%; Education: 0%; General purposes: 58%; Health: 40%; Infrastructure: 0%; Payments to tobacco growers: 0%; Reserves/rainy day funds: 0%; Social services: 0%; Tax reductions: 0%; Tobacco control: 2%; Unallocated: 0%. Nebraska; Budget shortfalls: 0%; Debt service on securitized funds: 0%; Economic development for tobacco regions: 0%; Education: 0%; General purposes: 0%; Health: 43%; Infrastructure: 0%; Payments to tobacco growers: 0%; Reserves/rainy day funds: 0%; Social services: 6%; Tax reductions: 0%; Tobacco control: 0%; Unallocated: 50%. Nevada; Budget shortfalls: 0%; Debt service on securitized funds: 0%; Economic development for tobacco regions: 0%; Education: 43%; General purposes: 0%; Health: 27%; Infrastructure: 0%; Payments to tobacco growers: 0%; Reserves/rainy day funds: 0%; Social services: 19%; Tax reductions: 0%; Tobacco control: 10%; Unallocated: 0%. New Hampshire; Budget shortfalls: 0%; Debt service on securitized funds: 0%; Economic development for tobacco regions: 0%; Education: 82%; General purposes: 12%; Health: 0%; Infrastructure: 0%; Payments to tobacco growers: 0%; Reserves/rainy day funds: 0%; Social services: 0%; Tax reductions: 0%; Tobacco control: 6%; Unallocated: 0%. New Jersey; Budget shortfalls: 11%; Debt service on securitized funds: 0%; Economic development for tobacco regions: 0%; Education: 0%; General purposes: 0%; Health: 9%; Infrastructure: 31%; Payments to tobacco growers: 0%; Reserves/rainy day funds: 0%; Social services: 0%; Tax reductions: 0%; Tobacco control: 0%; Unallocated: 49%. New Mexico; Budget shortfalls: 0%; Debt service on securitized funds: 0%; Economic development for tobacco regions: 0%; Education: 0%; General purposes: 66%; Health: 26%; Infrastructure: 0%; Payments to tobacco growers: 0%; Reserves/rainy day funds: 0%; Social services: 0%; Tax reductions: 0%; Tobacco control: 8%; Unallocated: 0%%. New York; Budget shortfalls: 0%; Debt service on securitized funds: 0%; Economic development for tobacco regions: 0%; Education: 0%; General purposes: 0%; Health: 92%; Infrastructure: 0%; Payments to tobacco growers: 0%; Reserves/rainy day funds: 0%; Social services: 0%; Tax reductions: 0%; Tobacco control: 8%; Unallocated: 0%. North Carolina; Budget shortfalls: 0%; Debt service on securitized funds: 0%; Economic development for tobacco regions: 51%; Education: 0%; General purposes: 45%; Health: 4%; Infrastructure: 0%; Payments to tobacco growers: 0%; Reserves/rainy day funds: 0%; Social services: 0%; Tax reductions: 0%; Tobacco control: 0%; Unallocated: 0%. North Dakota; Budget shortfalls: 0%; Debt service on securitized funds: 0%; Economic development for tobacco regions: 0%; Education: 45%; General purposes: 0%; Health: 0%; Infrastructure: 45%; Payments to tobacco growers: 0%; Reserves/rainy day funds: 0%; Social services: 0%; Tax reductions: 0%; Tobacco control: 10%; Unallocated: 0%. Ohio; Budget shortfalls: 76%; Debt service on securitized funds: 0%; Economic development for tobacco regions: 0%; Education: 4%; General purposes: 0%; Health: 2%; Infrastructure: 12%; Payments to tobacco growers: 4%; Reserves/rainy day funds: 0%; Social services: 1%; Tax reductions: 0%; Tobacco control: 0%; Unallocated: 0%. Oklahoma; Budget shortfalls: 0%; Debt service on securitized funds: 0%; Economic development for tobacco regions: 0%; Education: 0%; General purposes: 2%; Health: 45%; Infrastructure: 0%; Payments to tobacco growers: 0%; Reserves/rainy day funds: 0%; Social services: 26%; Tax reductions: 0%; Tobacco control: 27%; Unallocated: 0%. Oregon; Budget shortfalls: 73%; Debt service on securitized funds: 0%; Economic development for tobacco regions: 0%; Education: 0%; General purposes: 0%; Health: 25%; Infrastructure: 0%; Payments to tobacco growers: 0%; Reserves/rainy day funds: 0%; Social services: 0%; Tax reductions: 0%; Tobacco control: 0%; Unallocated: 1%. Pennsylvania; Budget shortfalls: 0%; Debt service on securitized funds: 0%; Economic development for tobacco regions: 0%; Education: 0%; General purposes: 0%; Health: 100%; Infrastructure: 0%; Payments to tobacco growers: 0%; Reserves/rainy day funds: 0%; Social services: 0%; Tax reductions: 0%; Tobacco control: 0%; Unallocated: 0%. Rhode Island; Budget shortfalls: 0%; Debt service on securitized funds: 0%; Economic development for tobacco regions: 0%; Education: 0%; General purposes: 99%; Health: 0%; Infrastructure: 0%; Payments to tobacco growers: 0%; Reserves/rainy day funds: 0%; Social services: 0%; Tax reductions: 0%; Tobacco control: 0%; Unallocated: 1%. South Carolina; Budget shortfalls: 0%; Debt service on securitized funds: 100%; Economic development for tobacco regions: 0%; Education: 0%; General purposes: 0%; Health: 0%; Infrastructure: 0%; Payments to tobacco growers: 0%; Reserves/rainy day funds: 0%; Social services: 0%; Tax reductions: 0%; Tobacco control: 0%; Unallocated: 0%. South Dakota; Budget shortfalls: 0%; Debt service on securitized funds: 20%; Economic development for tobacco regions: 0%; Education: 80%; General purposes: 0%; Health: 0%; Infrastructure: 0%; Payments to tobacco growers: 0%; Reserves/rainy day funds: 0%; Social services: 0%; Tax reductions: 0%; Tobacco control: 0%; Unallocated: 0%. Tennessee; Budget shortfalls: 100%; Debt service on securitized funds: 0%; Economic development for tobacco regions: 0%; Education: 0%; General purposes: 0%; Health: 0%; Infrastructure: 0%; Payments to tobacco growers: 0%; Reserves/rainy day funds: 0%; Social services: 0%; Tax reductions: 0%; Tobacco control: 0%; Unallocated: 0%. Utah; Budget shortfalls: 13%; Debt service on securitized funds: 0%; Economic development for tobacco regions: 0%; Education: 0%; General purposes: 0%; Health: 34%; Infrastructure: 0%; Payments to tobacco growers: 0%; Reserves/rainy day funds: 35%; Social services: 6%; Tax reductions: 0%; Tobacco control: 12%; Unallocated: 0%. Vermont; Budget shortfalls: 17%; Debt service on securitized funds: 0%; Economic development for tobacco regions: 0%; Education: 0%; General purposes: 0%; Health: 67%; Infrastructure: 0%; Payments to tobacco growers: 0%; Reserves/rainy day funds: 0%; Social services: 0%; Tax reductions: 0%; Tobacco control: 17%; Unallocated: 0%. Virginia; Budget shortfalls: 0%; Debt service on securitized funds: 0%; Economic development for tobacco regions: 37%; Education: 0%; General purposes: 40%; Health: 0%; Infrastructure: 0%; Payments to tobacco growers: 13%; Reserves/rainy day funds: 0%; Social services: 0%; Tax reductions: 0%; Tobacco control: 10%; Unallocated: 0%. Washington; Budget shortfalls: 0%; Debt service on securitized funds: 4%; Economic development for tobacco regions: 0%; Education: 0%; General purposes: 75%; Health: 18%; Infrastructure: 0%; Payments to tobacco growers: 0%; Reserves/rainy day funds: 0%; Social services: 0%; Tax reductions: 0%; Tobacco control: 3%; Unallocated: 0%. West Virginia; Budget shortfalls: 0%; Debt service on securitized funds: 0%; Economic development for tobacco regions: 0%; Education: 0%; General purposes: 0%; Health: 91%; Infrastructure: 0%; Payments to tobacco growers: 0%; Reserves/rainy day funds: 0%; Social services: 0%; Tax reductions: 0%; Tobacco control: 9%; Unallocated: 0%. Wisconsin; Budget shortfalls: 80%; Debt service on securitized funds: 0%; Economic development for tobacco regions: 0%; Education: 0%; General purposes: 18%; Health: 0%; Infrastructure: 0%; Payments to tobacco growers: 0%; Reserves/rainy day funds: 0%; Social services: 0%; Tax reductions: 0%; Tobacco control: 2%; Unallocated: 0%. Wyoming; Budget shortfalls: 0%; Debt service on securitized funds: 0%; Economic development for tobacco regions: 0%; Education: 0%; General purposes: 0%; Health: 42%; Infrastructure: 0%; Payments to tobacco growers: 0%; Reserves/rainy day funds: 0%; Social services: 11%; Tax reductions: 0%; Tobacco control: 16%; Unallocated: 31%. Percent of allocations for all states; Budget shortfalls: 36%; Debt service on securitized funds: 2%; Economic development for tobacco regions: 2%; Education: 4%; General purposes: 8%; Health: 24%; Infrastructure: 7%; Payments to tobacco growers: 0%; Reserves/rainy day funds: 0%; Social services: 1%; Tax reductions: 1%; Tobacco control: 2%; Unallocated: 12%. Sources: State budget offices or their designees (data); GAO (analysis). Notes: Percentages may not add up to 100 because of rounding. Categories where the percentage allocated by a state is zero means either (1) the state allocated no funds to the category or (2) the amount allocated was less than 1 percent. Appendix IV shows the dollar amounts each state allocated to the various categories. [End of table] Table 4: Expected Allocation of States' Combined MSA Payments and Securitized Proceeds, Fiscal Year 2004: [See PDF for image] Sources: State budget offices or their designees (data); GAO (analysis). Note: Percentages may not add up to 100 because of rounding. Categories where the percentage allocated by a state is zero means either (1) the state expects not to allocate funds to the category or (2) the expected allocation is less than 1 percent. Appendix IV shows the dollar amounts each state expects to allocate to the various categories. [End of table] The states' allocations of MSA payments differed from the allocations of securitized proceeds made by the few states that received proceeds. In fiscal year 2003, the categories to which the 46 states allocated the greatest portion of their MSA payments were health-related programs (49 percent) and budget shortfalls (17 percent). In contrast, the 6 states[Footnote 10] that allocated securitized proceeds in fiscal year 2003 allocated the greatest portion to budget shortfalls (55 percent); about 21 percent of the proceeds were unallocated. In fiscal year 2004, the categories to which the 46 states expected to allocate the greatest portion of their MSA payments were health-related programs (41 percent) and servicing the debt on securitized funds (16 percent). In contrast, the 3 states[Footnote 11] that expected to allocate securitized proceeds for fiscal year 2004 planned to allocate the greatest portion to budget shortfalls (87 percent) and about 8 percent of the funds to infrastructure. (See table 5.): Table 5: Percentage of MSA Payments and Securitized Proceeds Allocated or Expected to Be Allocated to Various Categories, Fiscal Years 2003 and 2004: Category: Budget shortfalls; MSA payments: Allocated in fiscal year 2003: 17; MSA payments: Expected to be allocated in fiscal year 2004: 6; Securitized proceeds: Allocated in fiscal year 2003: 55; Securitized proceeds: Expected to be allocated in fiscal year 2004: 87. Category: Debt service; MSA payments: Allocated in fiscal year 2003: 4; MSA payments: Expected to be allocated in fiscal year 2004: 16; [Empty]; Securitized proceeds: Allocated in fiscal year 2003: 0; Securitized proceeds: Expected to be allocated in fiscal year 2004: 0. Category: Economic development; MSA payments: Allocated in fiscal year 2003: 4; MSA payments: Expected to be allocated in fiscal year 2004: 5; [Empty]; Securitized proceeds: Allocated in fiscal year 2003: 0; Securitized proceeds: Expected to be allocated in fiscal year 2004: 0. Category: Education; MSA payments: Allocated in fiscal year 2003: 4; MSA payments: Expected to be allocated in fiscal year 2004: 6; Securitized proceeds: Allocated in fiscal year 2003: 3; Securitized proceeds: Expected to be allocated in fiscal year 2004: 0. Category: General purposes; MSA payments: Allocated in fiscal year 2003: 8; MSA payments: Expected to be allocated in fiscal year 2004: 13; Securitized proceeds: Allocated in fiscal year 2003: 7; Securitized proceeds: Expected to be allocated in fiscal year 2004: 0. Category: Health; MSA payments: Allocated in fiscal year 2003: 49; MSA payments: Expected to be allocated in fiscal year 2004: 41; Securitized proceeds: Allocated in fiscal year 2003: 0; Securitized proceeds: Expected to be allocated in fiscal year 2004: 0. Category: Infrastructure Reserves; MSA payments: Allocated in fiscal year 2003: 1; MSA payments: Expected to be allocated in fiscal year 2004: 1; Securitized proceeds: Allocated in fiscal year 2003: 13; Securitized proceeds: Expected to be allocated in fiscal year 2004: 8. Category: Payments to tobacco growers; MSA payments: Allocated in fiscal year 2003: 1; MSA payments: Expected to be allocated in fiscal year 2004: 1; Securitized proceeds: Allocated in fiscal year 2003: 0; Securitized proceeds: Expected to be allocated in fiscal year 2004: 0. Category: Reserves/rainy day funds; MSA payments: Allocated in fiscal year 2003: 0; MSA payments: Expected to be allocated in fiscal year 2004: 0; Securitized proceeds: Allocated in fiscal year 2003: 0; Securitized proceeds: Expected to be allocated in fiscal year 2004: 0. Category: Social services; MSA payments: Allocated in fiscal year 2003: 2; MSA payments: Expected to be allocated in fiscal year 2004: 2; [Empty]; Securitized proceeds: Allocated in fiscal year 2003: 0; Securitized proceeds: Expected to be allocated in fiscal year 2004: 0. Category: Tax reductions; MSA payments: Allocated in fiscal year 2003: 2; MSA payments: Expected to be allocated in fiscal year 2004: 1; [Empty]; Securitized proceeds: Allocated in fiscal year 2003: 0; Securitized proceeds: Expected to be allocated in fiscal year 2004: 0. Category: Tobacco control; MSA payments: Allocated in fiscal year 2003: 4; MSA payments: Expected to be allocated in fiscal year 2004: 4; [Empty]; Securitized proceeds: Allocated in fiscal year 2003: 0; Securitized proceeds: Expected to be allocated in fiscal year 2004: 0. Category: Unallocated; MSA payments: Allocated in fiscal year 2003: 3; MSA payments: Expected to be allocated in fiscal year 2004: 3; Securitized proceeds: Allocated in fiscal year 2003: 21; Securitized proceeds: Expected to be allocated in fiscal year 2004: 5. Category: Total percent; MSA payments: Allocated in fiscal year 2003: 99; MSA payments: Expected to be allocated in fiscal year 2004: 99; Securitized proceeds: Allocated in fiscal year 2003: 99; Securitized proceeds: Expected to be allocated in fiscal year 2004: 100. Category: Total amount allocated[A]; MSA payments: Allocated in fiscal year 2003: $7 billion; MSA payments: Expected to be allocated in fiscal year 2004: $5.4 billion; Securitized proceeds: Allocated in fiscal year 2003: $7 billion; Securitized proceeds: Expected to be allocated in fiscal year 2004: $7.7 billion. [End of table] Sources: State budget offices or their designees (data); GAO (analysis). [A] Some states received MSA payments and/or securitized proceeds in one fiscal year and allocated them the next fiscal year. The amount of funds allocated may not equal the amount of funds received because of carry-over funds and interest earned. We are sending copies of this report to interested congressional committees and others upon request. Copies are also available at no charge on the GAO Web site at [Hyperlink, http://www.gao.gov]. Please contact me at (202) 512-3841 or [Hyperlink, dyckmanl@gao.gov], if you or your staff have any questions concerning this report. Major contributors to this report are listed in appendix VI. Signed by: Lawrence J. Dyckman Director, Natural Resources and Environment: List of Congressional Requesters: The Honorable Thad Cochran: Chairman: The Honorable Tom Harkin: Ranking Democratic Member: Committee on Agriculture, Nutrition, and Forestry: United States Senate: The Honorable Robert Goodlatte: Chairman, Committee on Agriculture: House of Representatives: The Honorable Jim Bunning: United States Senate: [End of section] Appendixes: Appendix I: Objectives, Scope, and Methodology: The Farm Security and Rural Investment Act of 2002 (2002 Farm Bill) requires GAO to report annually on the amount of Master Settlement Agreement (MSA) payments states receive and how they use these payments for the years 2002 through 2006. This report is the third in a series of reports responding to the 2002 Farm Bill requirement. In December 2002, we issued the report Tobacco Settlement: States' Allocations of Phase II Funds [Hyperlink, http://www.gao.gov/cgi-bin/getrpt?GAO- 03-262R], which provides information on the National Tobacco Grower Settlement Trust (commonly referred to as the Phase II agreement). In February 2003, we issued the report Tobacco Settlement: States' Allocations of Fiscal Years 2002 and 2003 Master Settlement Agreement Payments [Hyperlink, http://www.gao.gov/cgi-bin/ getrpt?GAO-03-407] AO-03-407). GAO also reported on states' receipt and use of MSA payments for fiscal years 2000 and 2001 in a June 2001 report, Tobacco Settlement: States' Use of Master Settlement Agreement Payments [Hyperlink, http://www.gao.gov/cgi-bin/getrpt?GAO-01-851] AO-01-851). To respond to the Farm Bill requirement, the objectives of this study were to provide information on (1) the amount of payments received by the 46 states party to the MSA during fiscal year 2003 and the amount of payments these states expect to receive during fiscal year 2004, and (2) states' allocations of MSA funds to various program categories for fiscal year 2003 and states' expected allocations for fiscal year 2004.[Footnote 12], [Footnote 13] To address these objectives, we surveyed[Footnote 14] the executive budget offices, or their designees, in the 46 states party to the MSA. In addition, we obtained and reviewed MSA disbursement data provided by the National Association of Attorneys General[Footnote 15] and compared it with payment data provided by the states. We also reviewed previous GAO reports and other relevant studies. We conducted our work from May 2003 through February 2004 in accordance with generally accepted government auditing standards. Our study focuses on the states' shares of MSA payments and does not include information on allocations of MSA payments to cities and counties in California and New York.[Footnote 16] In addition, we did not collect information on MSA payments made to the District of Columbia or the five U.S. territories that are also party to the MSA. Because we completed our fieldwork before states received their fiscal year 2004 payments, we were unable to obtain final information on the actual MSA payments states received during fiscal year 2004. Consequently, we obtained information on states' expected fiscal year 2004 MSA payments. Survey Methodology and Categorization of States' Allocations: We used a survey instrument similar to the one used to obtain information for our February 2003 report. In August 2003, we contacted the 46 state budget officials, or their designees, who completed the surveys for our February 2003 report. The officials in 35 of these states said they would be the respondents for this year's survey. Officials in the other 11 states identified new respondents. We e- mailed the survey to the identified officials in each of the 46 states party to the MSA. We received responses from all 46 states. From these responses, we obtained information on the MSA payments states received in fiscal year 2003 and the MSA payments they expect to receive in fiscal year 2004, and the states' allocations and expected allocations of MSA payments in fiscal years 2003 and 2004, respectively. We also obtained information on the states' proceeds, if any, from securitization or expected securitization in fiscal years 2003 and 2004, respectively, and the allocation of the securitized proceeds. Furthermore, in the survey, we asked the states to categorize their allocations of MSA payments and securitized MSA proceeds for fiscal years 2003 and 2004 using the 12 program categories developed for our report. (See the definitions of the 12 categories below.) We also asked states to identify the amount of MSA payments that were not allocated. The level of detail for individual states varies because we are relying on state-reported information. Although we did not independently verify the accuracy of the information provided to us by the state budget offices, we did perform some data reliability testing. We reviewed earlier reports, compared payment amounts reported by states with amounts reported to the National Association of Attorneys General, and contacted many states to clarify the information they provided. Based on this work, we determined that the data were reliable enough for our purposes. In addition, there are no sampling errors because this was not a sample survey. Nevertheless, the practical difficulties of conducting any survey may introduce errors, commonly referred to as nonsampling errors. For example, difficulties in how a particular question is interpreted, in the sources of information that are available to respondents, or in how the data are entered into a database or were analyzed can introduce unwanted variability into the survey results. We took steps in the development of the survey, the data collection, and the data editing and analysis to minimize these nonsampling errors. For example, we edited the completed surveys for consistency and contacted state budget offices to clarify responses, verified all survey data that were entered into our database, and verified that the computer programs were written correctly. We took information on MSA payments and securitized proceeds received and allocated for fiscal years 2000-2002 that we collected for previous GAO reports dealing with the MSA[Footnote 17] and compared it with receipts and allocations for fiscal years 2003 and 2004. Categories of States' Allocations: Budget shortfalls: This category comprises amounts allocated to balance state budgets and close gaps or reduce deficits resulting from lower- than-anticipated revenues or increased mandatory or essential expenditures. Debt servicing of bonds backed by MSA payments: This category comprises amounts allocated to service the debt on bonds issued when the state securitized all or a portion of its MSA payments. Economic development for tobacco regions: This category comprises amounts allocated for economic development projects in tobacco states such as infrastructure projects, education and job training programs, and research on alternative uses of tobacco and alternative crops. This category includes projects specifically designed to benefit tobacco growers as well as economic development that may serve a larger population within a tobacco state. Education: This category comprises amounts allocated for education programs such as day care, preschool, Head Start, early childhood education, elementary and secondary education, after-school programs, and higher education. This category does not include money for capital projects such as construction of school buildings. General purposes: This category comprises amounts allocated for attorneys' fees and other items, such as law enforcement or community development, that could not be placed in a more precise category. This category also includes amounts allocated to a state's general fund that were not earmarked for any particular purpose. Amounts used to balance state budgets and close gaps or reduce deficits should be categorized as budget shortfalls rather than general purposes. Health: This category comprises amounts allocated for direct health care services; health insurance, including Medicaid and the State Children's Health Insurance Program (SCHIP); hospitals; medical technology; public health services; and health research. This category does not include money for capital projects such as construction of health facilities. Infrastructure: This category comprises amounts allocated for capital projects such as construction and renovation of health care, education and social services facilities; water and transportation projects; and municipal and state government buildings. This category includes retirement of debt owed on capital projects. Payments to tobacco growers: This category comprises amounts allocated for direct payments to tobacco growers, including subsidies and crop conversion programs. Reserves/rainy day funds: This category comprises amounts allocated to state budget reserves such as rainy day and budget stabilization funds not earmarked for specific programs. Amounts allocated to reserves that are earmarked for specific areas are categorized under those areas-- e.g., reserve amounts earmarked for economic development purposes should be categorized in the economic development category. Social services: This category comprises amounts allocated for social services such as programs for the aging, assisted living, Meals on Wheels, drug courts, child welfare, and foster care. This category also includes amounts allocated to special funds established for children's programs. Tax reductions: This category comprises amounts allocated for tax reductions such as property tax rebates and earned income tax credits. Tobacco control: This category comprises amounts allocated for tobacco control programs such as prevention, including youth education, enforcement, and cessation services. Unallocated: This category comprises amounts not allocated for any specific purpose, such as amounts allocated to dedicated funds that have no specified purpose; amounts states chose not to allocate in the year MSA payments were received that will be available for allocation in a subsequent fiscal year; interest earned from dedicated funds not yet allocated; and amounts that have not been allocated because the state had not made a decision on the use of the MSA payments. [End of section] Appendix II: Percent Allocation of MSA Payments for 46 States: State: Alabama; Percent: 1.6161308. State: Alaska; Percent: 0.3414187. State: Arizona; Percent: 1.4738845. State: Arkansas; Percent: 0.8280661. State: California; Percent: 12.7639554. State: Colorado; Percent: 1.3708614. State: Connecticut; Percent: 1.8565373. State: Delaware; Percent: 0.3954695. State: Georgia; Percent: 2.4544575. State: Hawaii; Percent: 0.6018650. State: Idaho; Percent: 0.3632632. State: Illinois; Percent: 4.6542472. State: Indiana; Percent: 2.0398033. State: Iowa; Percent: 0.8696670. State: Kansas; Percent: 0.8336712. State: Kentucky; Percent: 1.7611586. State: Louisiana; Percent: 2.2553531. State: Maine; Percent: 0.7693505. State: Maryland; Percent: 2.2604570. State: Massachusetts; Percent: 4.0389790. State: Michigan; Percent: 4.3519476. State: Missouri; Percent: 2.2746011. State: Montana; Percent: 0.4247591. State: Nebraska; Percent: 0.5949833. State: Nevada; Percent: 0.6099351. State: New Hampshire; Percent: 0.6659340. State: New Jersey; Percent: 3.8669963. State: New Mexico; Percent: 0.5963897. State: New York; Percent: 12.7620310. State: North Carolina; Percent: 2.3322850. State: North Dakota; Percent: 0.3660138. State: Ohio; Percent: 5.0375098. State: Oklahoma; Percent: 1.0361370. State: Oregon; Percent: 1.1476582. State: Pennsylvania; Percent: 5.7468588. State: Rhode Island; Percent: 0.7189054. State: South Carolina; Percent: 1.1763519. State: South Dakota; Percent: 0.3489458. State: Tennessee; Percent: 2.4408945. State: Utah; Percent: 0.4448869. State: Vermont; Percent: 0.4111851. State: Virginia; Percent: 2.0447451. State: Washington; Percent: 2.0532582. State: West Virginia; Percent: 0.8864604. State: Wisconsin; Percent: 2.0720390. State: Wyoming; Percent: 0.2483449. Source: Master Settlement Agreement. [End of table] [End of section] Appendix III: States' Allocations of Combined MSA Payments and Securitized Proceeds for Fiscal Years 2000-2004: [See PDF for image] Source: State budget offices or their designees (data); GAO (analysis). [A] The amounts for each year are in the current year dollars for that year. Percentages across years may be compared but not dollars across years because the dollars are not adjusted to a constant base year. [B] We did not obtain information on allocations for budget shortfalls and debt service on securitized funds in fiscal years 2000 and 2001. [End of table] [End of section] Appendix IV: State-Specific Information on Amounts of Master Settlement Agreement Payments and Securitized Proceeds Received and Allocated: This appendix presents the following information for each of the 46 states party to the Master Settlement Agreement (MSA): * the amount of MSA payments received and the categories to which they were allocated for fiscal year 2003; * the amount of MSA payments expected to be received and the expected categories to which they will be allocated for fiscal year 2004; * the amount of securitized proceeds received or expected to be received and the categories to which they were allocated or expected to be allocated for fiscal years 2003 and 2004, respectively, if applicable (applies to seven states); and: * the amount, if any, of unallocated funds received for fiscal year 2003 and the expected amount of unallocated funds for fiscal year 2004. The tables include only those program categories to which a state reported allocating funds. If a category is not listed, it means the state did not allocate funds to the category. In some cases, the total amounts allocated may exceed the actual MSA payments and securitized proceeds because the amounts allocated include carry-over funds from prior years and/or the interest earned on those funds. Some states that allocated funds to a program category did not provide examples of programs receiving funds. Only seven states--California, New Jersey, New York, Oregon, South Dakota, Washington, and Wisconsin--received or expected to receive, or allocated or expected to allocate, securitized proceeds in fiscal year 2003 or 2004, respectively. In those cases, we combined the securitized proceeds with the MSA payments before allocating the funds to categories. Alabama: Alabama reported receiving $118,558,077 from MSA payments in fiscal year 2003 and expects to receive $99,876,883 in fiscal year 2004. Table 6: Alabama's MSA Payment Allocations: Program area: Debt service on securitized funds: [Empty] Fiscal year 2003 allocation: $13,000,000; Fiscal year 2004 expected allocation: $13,000,000. Program area: Education; Fiscal year 2003 allocation: 13,867,301; Fiscal year 2004 expected allocation: 11,413,129; Examples of programs receiving or expected to receive allocations: Alternative schools. Program area: General purposes; Fiscal year 2003 allocation: 8,306,872; Fiscal year 2004 expected allocation: 6,836,760; Examples of programs receiving or expected to receive allocations: Juvenile Probation Officers, administration. Program area: Health; Fiscal year 2003 allocation: 52,182,475; Fiscal year 2004 expected allocation: 42,947,453; Examples of programs receiving or expected to receive allocations: Public health, mental health, Medicaid. Program area: Social services; Fiscal year 2003 allocation: 30,571,097; Fiscal year 2004 expected allocation: 25,160,762; Examples of programs receiving or expected to receive allocations: Child welfare, children's programs, youth services. Program area: Tobacco control; Fiscal year 2003 allocation: 630,332; Fiscal year 2004 expected allocation: 518,779; Examples of programs receiving or expected to receive allocations: Tobacco enforcement of minors. Total; Fiscal year 2003 allocation: $118,558,077; Fiscal year 2004 expected allocation: $99,876,883; Examples of programs receiving or expected to receive allocations: [Empty]. Source: Alabama Department of Finance, Executive Budget Office. [End of table] Alaska: Alaska reported receiving $26,257,704 from MSA payments in fiscal year 2003 and expects to receive $21,400,000 in fiscal year 2004. Table 7: Alaska's MSA Payment Allocations: Program area: Debt service on securitized funds: [Empty] Fiscal year 2003 allocation: $20,191,504; Fiscal year 2004 expected allocation: $17,603,396. Program area: Health; Fiscal year 2003 allocation: 1,554,100; Fiscal year 2004 expected allocation: 1,082,700; Examples of programs receiving or expected to receive allocations: Medicaid and public health. Program area: Tobacco control; Fiscal year 2003 allocation: 4,512,100; Fiscal year 2004 expected allocation: 4,312,900; Examples of programs receiving or expected to receive allocations: Sting operations. Total; Fiscal year 2003 allocation: $26,257,704; Fiscal year 2004 expected allocation: $22,998,996[A]; Examples of programs receiving or expected to receive allocations: [Empty]. [End of table] Source: Alaska Office of Management and Budget. [A] Includes carry-over funds and interest earned. Arizona: Arizona reported receiving $106,926,757 from MSA payments in fiscal year 2003 and expects to receive $91,856,500 in fiscal year 2004. Table 8: Arizona's MSA Payment Allocations: Program area: Fiscal year 2003 allocation: Fiscal year 2004 expected allocation:: Examples of programs receiving or expected to receive allocations. Program area: Health; Fiscal year 2003 allocation: $106,926,757; Fiscal year 2004 expected allocation: $91,856,500 Medical services for an expanded segment of the population. Total; Fiscal year 2003 allocation: $106,926,757; Fiscal year 2004 expected allocation: $91,856,500 [Empty]. [End of table] Source: Arizona Governor's Office of Strategic Planning and Budget. Arkansas: Arkansas reported receiving $60,067,457 from MSA payments in fiscal year 2003 and expects to receive $59,000,000 in fiscal year 2004. Table 9: Arkansas's MSA Payment Allocations: Program area: Debt service on securitized funds: [Empty] Fiscal year 2003 allocation: $5,000,000; Fiscal year 2004 expected allocation: $5,000,000; Examples of programs receiving or expected to receive allocations: [Empty]. Program area: Education; Fiscal year 2003 allocation: 2,981,392; Fiscal year 2004 expected allocation: 2,871,217; Examples of programs receiving or expected to receive allocations: School of Public Health. Program area: Health; Fiscal year 2003 allocation: 53,804,182; Fiscal year 2004 expected allocation: 51,595,388; Examples of programs receiving or expected to receive allocations: Prevention and cessation, biomedical research, Medicaid, and Minority Health. Program area: Tobacco control; Fiscal year 2003 allocation: 394,931; Fiscal year 2004 expected allocation: 600,852; Examples of programs receiving or expected to receive allocations: Tobacco control grants. Total; Fiscal year 2003 allocation: $62,180,505[A]; Fiscal year 2004 expected allocation: $60,067,457[B]; Examples of programs receiving or expected to receive allocations: [Empty]. Source: Arkansas Department of Finance and Administration. [A] The MSA payments received in fiscal year 2002 were allocated for fiscal year 2003. [B] The MSA payments received in fiscal year 2003 will be allocated for fiscal year 2004. [End of table] California: California reported receiving $474,066,000 from MSA payments in fiscal year 2003 and expects to receive $399,372,000 in fiscal year 2004. In addition, California reported receiving $2,485,000,000 of securitized proceeds in fiscal year 2003 and expects to receive $2 billion in fiscal year 2004. All securitized funds were/expect to be allocated to budget shortfalls. Table 10: California's Allocations of MSA Payments and Securitized Proceeds: Program area: Budget shortfalls; Fiscal year 2003 allocation: $2,495,000,000; Fiscal year 2004 expected allocation: $2,000,000,000; Examples of programs receiving or expected to receive allocations: [Empty]. Program area: Debt service on securitized funds: [Empty] Fiscal year 2003 allocation: 0; Fiscal year 2004 expected allocation: 399,372,000; Examples of programs receiving or expected to receive allocations: [Empty]. Program area: Health; Fiscal year 2003 allocation: 525,235,000; Fiscal year 2004 expected allocation: 0; Examples of programs receiving or expected to receive allocations: Cancer research, children's health programs. Total; Fiscal year 2003 allocation: $3,020,235,000[A]; Fiscal year 2004 expected allocation: $2,399,372,000; Examples of programs receiving or expected to receive allocations: [Empty]. Source: California Department of Finance. Note: These MSA payments include only payments made to the state, which amount to 50 percent of the annual payments made by the tobacco companies to California. Cities and counties in the state receive the other 50 percent of the annual MSA payments to California. [A] Includes carry-over funds. [End of table] Colorado: Colorado reported receiving $100,584,727 from MSA payments in fiscal year 2003 and expects to receive $87,700,580 in fiscal year 2004. Table 11: Colorado's MSA Payment Allocations: Program area: Budget shortfalls; Fiscal year 2003 allocation: $66,851,358; Fiscal year 2004 expected allocation: $0; Examples of programs receiving or expected to receive allocations: [Empty]. Program area: Education; Fiscal year 2003 allocation: 15,990,420; Fiscal year 2004 expected allocation: 11,398,410; Examples of programs receiving or expected to receive allocations: Literacy programs for elementary school students, Regional Libraries, State Council on the Arts. Program area: Health; Fiscal year 2003 allocation: 34,542,187; Fiscal year 2004 expected allocation: 33,248,208; Examples of programs receiving or expected to receive allocations: Visiting Nurses, primary and preventive care grants, Children's Health Insurance Program+, tobacco research, breast and cervical cancer program, dental loan repayment. Program area: Reserves/rainy day funds; Fiscal year 2003 allocation: 1,797,610; Fiscal year 2004 expected allocation: 0; Examples of programs receiving or expected to receive allocations: Tobacco Trust Fund. Program area: Social services; Fiscal year 2003 allocation: 989,841; Fiscal year 2004 expected allocation: 1,902,681; Examples of programs receiving or expected to receive allocations: State Veterans' Fund. Program area: Tobacco control; Fiscal year 2003 allocation: 7,347,618; Fiscal year 2004 expected allocation: 4,376,779; Examples of programs receiving or expected to receive allocations: Cessation and prevention grants. Total; Fiscal year 2003 allocation: $127,519,034[A]; Fiscal year 2004 expected allocation: $50,926,078[A]; Examples of programs receiving or expected to receive allocations: [Empty]. [End of table] Source: Colorado Governor's Office of State Planning and Budgeting. [A] Includes carry-over funds and interest earned. Connecticut: Connecticut reported receiving $137,914,440 from MSA payments in fiscal year 2003 and expects to receive $113,000,000 in fiscal year 2004. Table 12: Connecticut's MSA Payment Allocations: Program area: General purposes; Fiscal year 2003 allocation: $137,914,440; Fiscal year 2004 expected allocation: $111,000,000; Examples of programs receiving or expected to receive allocations: General Fund revenue. Program area: Health; Fiscal year 2003 allocation: 0; Fiscal year 2004 expected allocation: 2,000,000; Examples of programs receiving or expected to receive allocations: Biomedical Research Trust Fund. Total; Fiscal year 2003 allocation: $137,914,440; Fiscal year 2004 expected allocation: $113,000,000; Examples of programs receiving or expected to receive allocations: [Empty]. Source: Connecticut Office of Policy and Management. [End of table] Delaware: Delaware reported receiving $28,734,700 from MSA payments in fiscal year 2003 and expects to receive $29,800,000 in fiscal year 2004. Table 13: Delaware's MSA Payment Allocations: Program area: Education; Fiscal year 2003 allocation: $750,000; Fiscal year 2004 expected allocation: $1,300,000; Examples of programs receiving or expected to receive allocations: Scholarships for nursing students at Community College. Program area: General purposes; Fiscal year 2003 allocation: 854,700; Fiscal year 2004 expected allocation: 104,700; Examples of programs receiving or expected to receive allocations: Fire Suppression Revolving Loan Fund; Health Care Commission staff assistance; survey of school-age children on alcohol, drug, and tobacco use. Program area: Health; Fiscal year 2003 allocation: 21,700,000; Fiscal year 2004 expected allocation: 22,600,000; Examples of programs receiving or expected to receive allocations: Breast and cervical cancer screening, Senior Prescription Assistance Program, several cancer resource/support programs, defibrillators, "Strategic Reserve" (funds held in savings for future health-related initiatives), and implementation of recommendations of the Governor's Council on Cancer Incidence and Mortality. Program area: Reserves/rainy day funds; Fiscal year 2003 allocation: 0; Fiscal year 2004 expected allocation: 250,000; Examples of programs receiving or expected to receive allocations: [Empty]. Program area: Social services; Fiscal year 2003 allocation: 430,000; Fiscal year 2004 expected allocation: 430,000; Examples of programs receiving or expected to receive allocations: Attendant Care Services for persons living in the community with disabilities. Program area: Tobacco control; Fiscal year 2003 allocation: 5,000,000; Fiscal year 2004 expected allocation: 5,100,000; Examples of programs receiving or expected to receive allocations: Tobacco prevention, control and enforcement (e.g., Quitline, smoking cessation programs and advertising, undercover kids, enforcement agents). Total; Fiscal year 2003 allocation: $28,734,700; Fiscal year 2004 expected allocation: $29,784,700; Examples of programs receiving or expected to receive allocations: [Empty]. Source: Delaware Health and Social Services. [End of table] Georgia: Georgia reported receiving $178,041,093 from MSA payments in fiscal year 2003 and expects to receive $146,123,673 in fiscal year 2004. Table 14: Georgia's MSA Payment Allocations: Program area: Economic development for tobacco regions; Fiscal year 2003 allocation: $78,051,263; Fiscal year 2004 expected allocation: $65,834,093; Examples of programs receiving or expected to receive allocations: One Georgia Authority. Program area: Health; Fiscal year 2003 allocation: 85,945,619; Fiscal year 2004 expected allocation: 89,415,966; Examples of programs receiving or expected to receive allocations: Maintenance of previous Medicaid and State Children's Health Insurance Program expansions, school nurse programs, Critical Access Hospital Medicaid reimbursement, public health programs, Medicaid Home and Community- Based Waiver programs, Georgia Cancer Coalition. Program area: Social services; Fiscal year 2003 allocation: 7,149,804; Fiscal year 2004 expected allocation: 7,149,804; Examples of programs receiving or expected to receive allocations: Home and community-based services to the elderly, early intervention for families at risk for child abuse. Program area: Tobacco control; Fiscal year 2003 allocation: 14,476,237; Fiscal year 2004 expected allocation: 12,680,897; Examples of programs receiving or expected to receive allocations: Tobacco Use Prevention Program, compliance/enforcement for underage smoking. Total; Fiscal year 2003 allocation: $185,622,923[A]; Fiscal year 2004 expected allocation: $175,080,760[A]; Examples of programs receiving or expected to receive allocations: [Empty]. Source: Georgia Department of Community Health. [A] Includes carry-over funds and interest earned. [End of table] Hawaii: Hawaii reported receiving $43,663,626 from MSA payments in fiscal year 2003 and expects to receive $38,619,584 in fiscal year 2004. Table 15: Hawaii's MSA Payment Allocations: Program area: General purposes; Fiscal year 2003 allocation: $140,108; Fiscal year 2004 expected allocation: $2,800,761; Examples of programs receiving or expected to receive allocations: Tobacco Enforcement Special Fund of the Attorney General's Office for MSA enforcement, assessments for central services and administrative expenses. Program area: Health; Fiscal year 2003 allocation: 15,233,231; Fiscal year 2004 expected allocation: 12,536,588; Examples of programs receiving or expected to receive allocations: Department of Health for public health programs, Department of Human Services for children's health insurance programs. Program area: Infrastructure; Fiscal year 2003 allocation: 12,186,585; Fiscal year 2004 expected allocation: 10,029,270; Examples of programs receiving or expected to receive allocations: Debt service on University of Hawaii revenue bonds issued for the new Health and Wellness Center, to include a new biomedical research center and medical school. Program area: Reserves/rainy day funds; Fiscal year 2003 allocation: 10,663,262; Fiscal year 2004 expected allocation: 8,775,612; Examples of programs receiving or expected to receive allocations: State of Hawaii's Emergency and Budget Reserve Fund. Program area: Tobacco control; Fiscal year 2003 allocation: 5,440,440; Fiscal year 2004 expected allocation: 4,477,353; Examples of programs receiving or expected to receive allocations: Tobacco Prevention and Control Trust Fund. Total; Fiscal year 2003 allocation: $43,663,626; Fiscal year 2004 expected allocation: $38,619,584; Examples of programs receiving or expected to receive allocations: [Empty]. Source: Hawaii Department of Budget and Finance. [End of table] Idaho: Idaho reported receiving $26,653,835 from MSA payments in fiscal year 2003 and expects to receive $22,449,666 in fiscal year 2004. Table 16: Idaho's MSA Payment Allocations: Program area: Budget shortfalls; Fiscal year 2003 allocation: $70,311,509; Fiscal year 2004 expected allocation: $0; Examples of programs receiving or expected to receive allocations: [Empty]. Program area: Health; Fiscal year 2003 allocation: 1,851,400; Fiscal year 2004 expected allocation: 835,000; Examples of programs receiving or expected to receive allocations: Indigent health care, cancer camp for children, substance abuse data repository, planning funds for small business health insurance. Program area: Social services; Fiscal year 2003 allocation: 420,000; Fiscal year 2004 expected allocation: 270,000; Examples of programs receiving or expected to receive allocations: Youth courts to address juvenile crime, youth asset building, and status offender program for high-risk youth. Program area: Tobacco control; Fiscal year 2003 allocation: 1,257,800; Fiscal year 2004 expected allocation: 1,333,700; Examples of programs receiving or expected to receive allocations: Tobacco counter marketing, smoking prevention and cessation, tobacco free coalition, law enforcement youth tobacco investigations. Program area: Unallocated; Fiscal year 2003 allocation: 2,438,700; Fiscal year 2004 expected allocation: 22,449,666; Examples of programs receiving or expected to receive allocations: [Empty]. Total; Fiscal year 2003 allocation: $76,279,409[A]; Fiscal year 2004 expected allocation: $24,888,366[A]; Examples of programs receiving or expected to receive allocations: [Empty]. Source: Idaho Division of Financial Management. [A] Includes carry-over funds and/or interest earned. [End of table] Illinois: Illinois reported receiving $341,497,849 from MSA payments in fiscal year 2003 and expects to receive $269,747,300 in fiscal year 2004. Table 17: Illinois's MSA Payment Allocations: Program area: Education; Fiscal year 2003 allocation: $2,000,000; Fiscal year 2004 expected allocation: $2,000,000; Examples of programs receiving or expected to receive allocations: University of Illinois veterinary program. Program area: General purposes; Fiscal year 2003 allocation: 3,342,117; Fiscal year 2004 expected allocation: 4,780,998; Examples of programs receiving or expected to receive allocations: Illinois Technology Enterprise Corporation, Court of Claims awards, Tobacco Settlement Recovery Fund audit. Program area: Health; Fiscal year 2003 allocation: 282,406,174; Fiscal year 2004 expected allocation: 215,476,450; Examples of programs receiving or expected to receive allocations: Drug program for senior citizens, Medicaid drugs, juvenile diabetes, medical research. Program area: Infrastructure; Fiscal year 2003 allocation: 11,253,770; Fiscal year 2004 expected allocation: 17,326,042; Examples of programs receiving or expected to receive allocations: Argonne laboratory accelerator project. Program area: Social services; Fiscal year 2003 allocation: 1,989,004; Fiscal year 2004 expected allocation: 2,000,000; Examples of programs receiving or expected to receive allocations: Phone lines for senior care drug program. Program area: Tax reductions; Fiscal year 2003 allocation: 108,761,011; Fiscal year 2004 expected allocation: 37,300,000; Examples of programs receiving or expected to receive allocations: Senior citizen property tax credit. Program area: Tobacco control; Fiscal year 2003 allocation: 8,850,686; Fiscal year 2004 expected allocation: 13,600,000; Examples of programs receiving or expected to receive allocations: Local health department grants, youth tobacco prevention, American Lung Association grant. Program area: Unallocated; Fiscal year 2003 allocation: 20,280,087; Fiscal year 2004 expected allocation: 0; Examples of programs receiving or expected to receive allocations: [Empty]. Total; Fiscal year 2003 allocation: $438,882,849[A]; Fiscal year 2004 expected allocation: $292,483,490[A]; Examples of programs receiving or expected to receive allocations: [Empty]. Source: Illinois Governor's Office of Management and Budget. [A] Includes carry-over funds and interest earned. [End of table] Indiana: Indiana reported receiving $148,000,000 from MSA payments in fiscal year 2003 and expects to receive $127,600,000 in fiscal year 2004. Table 18: Indiana's MSA Payment Allocations: Program area: Budget shortfalls; Fiscal year 2003 allocation: $30,300,000; Fiscal year 2004 expected allocation: $0; Examples of programs receiving or expected to receive allocations: [Empty]. Program area: Economic development for tobacco regions; Fiscal year 2003 allocation: 5,000,000; Fiscal year 2004 expected allocation: 46,200,000; Examples of programs receiving or expected to receive allocations: Tobacco Farmers and Rural Community Impact Fund. Program area: Health; Fiscal year 2003 allocation: 48,300,000; Fiscal year 2004 expected allocation: 86,800,000; Examples of programs receiving or expected to receive allocations: Community health departments and centers, Hoosier Rx, children's health insurance program, minority epidemiology, cancer programs, HIV/AIDS services, WIC supplement, seniors' prescription drugs. Program area: Infrastructure; Fiscal year 2003 allocation: 13,000,000; Fiscal year 2004 expected allocation: 0; Examples of programs receiving or expected to receive allocations: Regional health facilities. Program area: Social services; Fiscal year 2003 allocation: 33,300,000; Fiscal year 2004 expected allocation: 24,300,000; Examples of programs receiving or expected to receive allocations: Developmentally disabled client services. Program area: Tobacco control; Fiscal year 2003 allocation: 25,000,000; Fiscal year 2004 expected allocation: 10,800,000; Examples of programs receiving or expected to receive allocations: Tobacco Use Prevention and Cessation Trust Fund. Program area: Unallocated; Fiscal year 2003 allocation: 59,200,000; Fiscal year 2004 expected allocation: 0; Examples of programs receiving or expected to receive allocations: [Empty]. Total; Fiscal year 2003 allocation: $214,100,000[A]; Fiscal year 2004 expected allocation: $168,100,000[A]; Examples of programs receiving or expected to receive allocations: [Empty]. Source: Indiana State Budget Agency. [A] Includes carry-over funds and interest earned. [End of table] Iowa: Iowa reported receiving $63,083,784 from MSA payments in fiscal year 2003 and expects to receive $56,400,000 in fiscal year 2004. Table 19: Iowa's MSA Payment Allocations: Program area: Debt service on securitized funds: [Empty] Fiscal year 2003 allocation: $25,240,060; Fiscal year 2004 expected allocation: $46,492,000; Examples of programs receiving or expected to receive allocations: [Empty]. Program area: Health; Fiscal year 2003 allocation: 37,843,724; Fiscal year 2004 expected allocation: 9,908,000; Examples of programs receiving or expected to receive allocations: Endowment for Iowa's Health Account. Total; Fiscal year 2003 allocation: $63,083,784; Fiscal year 2004 expected allocation: $56,400,000; Examples of programs receiving or expected to receive allocations: [Empty]. Source: Iowa Department of Management. [End of table] Kansas: Kansas reported receiving $61,169,272 from MSA payments in fiscal year 2003 and expects to receive $56,000,000 in fiscal year 2004. Table 20: Kansas's MSA Payment Allocations: Program area: Budget shortfalls; Fiscal year 2003 allocation: $28,199,897; Fiscal year 2004 expected allocation: $11,019,144; Examples of programs receiving or expected to receive allocations: [Empty]. Program area: Education; Fiscal year 2003 allocation: 8,525,000; Fiscal year 2004 expected allocation: 8,525,000; Examples of programs receiving or expected to receive allocations: Parent education, 4-year- olds at risk, reading and vision research, special education, University of Kansas Medical Center. Program area: Health; Fiscal year 2003 allocation: 9,285,724; Fiscal year 2004 expected allocation: 8,600,000; Examples of programs receiving or expected to receive allocations: Infants and toddlers, health start home visitors, tele-kid health care link. Program area: Social services; Fiscal year 2003 allocation: 26,228,000; Fiscal year 2004 expected allocation: 28,278,000; Examples of programs receiving or expected to receive allocations: Juvenile justice grants, children's mental health initiatives, family- centered systems of care, therapeutic preschool, Medicaid, community mental health center grants, school violence prevention. Program area: Tobacco control; Fiscal year 2003 allocation: 500,000; Fiscal year 2004 expected allocation: 500,000; Examples of programs receiving or expected to receive allocations: Smoking prevention and cessation. Total; Fiscal year 2003 allocation: $72,738,621[A]; Fiscal year 2004 expected allocation: $56,922,144[A]; Examples of programs receiving or expected to receive allocations: [Empty]. Source: Kansas Division of the Budget. [A] Includes carry-over funds and interest earned. [End of table] Kentucky: Kentucky reported receiving $130,829,140 from MSA payments in fiscal year 2003 and expects to receive $109,100,000 in fiscal year 2004. Table 21: Kentucky's MSA Payment Allocations: Program area: Budget shortfalls; Fiscal year 2003 allocation: $5,229,140; Fiscal year 2004 expected allocation: $0; Examples of programs receiving or expected to receive allocations: [Empty]. Program area: Economic development for tobacco regions; Fiscal year 2003 allocation: 56,688,000; Fiscal year 2004 expected allocation: 43,434,000; Examples of programs receiving or expected to receive allocations: Governor's Office for Agricultural Policy; Natural Resources, Conservation, Environmental Stewardship. Program area: Education; Fiscal year 2003 allocation: 9,961,700; Fiscal year 2004 expected allocation: 5,961,700; Examples of programs receiving or expected to receive allocations: Governor's Office of Early Childhood Development Program, Kentucky Higher Education Assistance Authority--Early Childhood Scholarship Program. Program area: Health; Fiscal year 2003 allocation: 47,123,500; Fiscal year 2004 expected allocation: 43,624,200; Examples of programs receiving or expected to receive allocations: Public Health-- Health Access Nurturing Development Services, Folic Acid Distribution, Healthy Start; lung cancer research; health insurance; Mental Health-- Substance Abuse Services for Medicaid Eligible Women with Dependent Children. Program area: Infrastructure; Fiscal year 2003 allocation: 6,112,000; Fiscal year 2004 expected allocation: 11,116,000; Examples of programs receiving or expected to receive allocations: Debt service on infrastructure, water resources and rural development bond fund. Program area: Tobacco control; Fiscal year 2003 allocation: 5,714,800; Fiscal year 2004 expected allocation: 4,964,100; Examples of programs receiving or expected to receive allocations: Substance abuse policy and smoking cessation. Total; Fiscal year 2003 allocation: $130,829,140; Fiscal year 2004 expected allocation: $109,100,000; Examples of programs receiving or expected to receive allocations: [Empty]. Source: Kentucky Governor's Office for Policy Research. [End of table] Louisiana: Louisiana reported receiving $165,482,878 from MSA payments in fiscal year 2003 and expects to receive $143,767,098 in fiscal year 2004. Table 22: Louisiana's MSA Payment Allocations: Program area: Debt service on securitized funds: [Empty] Fiscal year 2003 allocation: $99,249,176; Fiscal year 2004 expected allocation: $86,260,260; Examples of programs receiving or expected to receive allocations: [Empty]. Program area: Education; Fiscal year 2003 allocation: 6,366,337; Fiscal year 2004 expected allocation: 0; Examples of programs receiving or expected to receive allocations: Local and special schools, tuition opportunity program, Education Excellence trust fund. Program area: General purposes; Fiscal year 2003 allocation: 619,107; Fiscal year 2004 expected allocation: 341,260; Examples of programs receiving or expected to receive allocations: Enforcement of master settlement, expenses of investment banker. Program area: Health; Fiscal year 2003 allocation: 7,483,844; Fiscal year 2004 expected allocation: 12,046,312; Examples of programs receiving or expected to receive allocations: Children's health insurance program, school based health care centers, Medicaid, Health Excellence trust fund. Program area: Social services; Fiscal year 2003 allocation: 1,489,137; Fiscal year 2004 expected allocation: 1,489,137; Examples of programs receiving or expected to receive allocations: Starting-point preschool programs. Program area: Tobacco control; Fiscal year 2003 allocation: 600,000; Fiscal year 2004 expected allocation: 500,000; Examples of programs receiving or expected to receive allocations: Smoking prevention and cessation grants. Program area: Unallocated; Fiscal year 2003 allocation: 49,675,277; Fiscal year 2004 expected allocation: 43,130,129; Examples of programs receiving or expected to receive allocations: [Empty]. Total; Fiscal year 2003 allocation: $165,482,878; Fiscal year 2004 expected allocation: $143,767,098; Examples of programs receiving or expected to receive allocations: [Empty]. Source: Louisiana Office of Planning and Budget, Division of Administration. [End of table] Maine: Maine reported receiving $56,320,959 from MSA payments in fiscal year 2003 and expects to receive $49,654,499 in fiscal year 2004. Table 23: Maine's MSA Payment Allocations: Program area: Budget shortfalls; Fiscal year 2003 allocation: $43,244,794; Fiscal year 2004 expected allocation: $6,656,040; Examples of programs receiving or expected to receive allocations: [Empty]. Program area: Education; Fiscal year 2003 allocation: 7,290,437; Fiscal year 2004 expected allocation: 10,518,839; Examples of programs receiving or expected to receive allocations: Child care and development initiatives, after-school services, and Head Start. Program area: General purposes; Fiscal year 2003 allocation: 52,100; Fiscal year 2004 expected allocation: 60,089; Examples of programs receiving or expected to receive allocations: Attorney General enforcement and administrative costs. Program area: Health; Fiscal year 2003 allocation: 16,635,864; Fiscal year 2004 expected allocation: 18,677,172; Examples of programs receiving or expected to receive allocations: Prescription drugs, Medicaid, and other health initiatives. Program area: Social services; Fiscal year 2003 allocation: 5,647,037; Fiscal year 2004 expected allocation: 5,656,686; Examples of programs receiving or expected to receive allocations: Substance abuse prevention, intervention, testing and treatment. Program area: Tobacco control; Fiscal year 2003 allocation: 15,571,085; Fiscal year 2004 expected allocation: 14,957,139; Examples of programs receiving or expected to receive allocations: Community/school grants and statewide coordination to reduce tobacco addiction and use; tobacco prevention, control, and treatment. Total; Fiscal year 2003 allocation: $88,441,317[A]; Fiscal year 2004 expected allocation: $56,525,965[A]; Examples of programs receiving or expected to receive allocations: [Empty]. Source: Maine Department of Administrative and Financial Services, Bureau of the Budget. [A] Includes carry-over funds and/or interest earned. [End of table] Maryland: Maryland reported receiving $171,300,000 from MSA payments in fiscal year 2003 and expects to receive $149,000,000 in fiscal year 2004. Table 24: Maryland's MSA Payment Allocations: Program area: Budget shortfalls; Fiscal year 2003 allocation: $3,800,000; Fiscal year 2004 expected allocation: $0; Examples of programs receiving or expected to receive allocations: [Empty]. Program area: Education; Fiscal year 2003 allocation: 14,500,000; Fiscal year 2004 expected allocation: 3,000,000; Examples of programs receiving or expected to receive allocations: Local aid programs K-12. Program area: General purposes; Fiscal year 2003 allocation: 30,000,000; Fiscal year 2004 expected allocation: 30,000,000; Examples of programs receiving or expected to receive allocations: Payments to outside counsel. Program area: Health; Fiscal year 2003 allocation: 161,100,000; Fiscal year 2004 expected allocation: 155,100,000; Examples of programs receiving or expected to receive allocations: Cancer, heart, and lung screenings and treatments; drug treatments; Medicaid; management. Program area: Payments to tobacco growers; Fiscal year 2003 allocation: 6,300,000; Fiscal year 2004 expected allocation: 5,100,000; Examples of programs receiving or expected to receive allocations: Tri-County Council of Southern Maryland (buyout payments to farmers). Program area: Tobacco control; Fiscal year 2003 allocation: 19,600,000; Fiscal year 2004 expected allocation: 14,300,000; Examples of programs receiving or expected to receive allocations: Tobacco cessation/prevention education advertising. Program area: Unallocated; Fiscal year 2003 allocation: 64,400,000; Fiscal year 2004 expected allocation: 5,100,000; Examples of programs receiving or expected to receive allocations: [Empty]. Total; Fiscal year 2003 allocation: $299,700,000[A]; Fiscal year 2004 expected allocation: $212,600,000[A]; Examples of programs receiving or expected to receive allocations: [Empty]. Source: Maryland Department of Budget and Management. [A] Includes carry-over funds and interest earned. [End of table] Massachusetts: Massachusetts reported receiving $300,036,966 from MSA payments in fiscal year 2003 and expects to receive $250,700,000 in fiscal year 2004. Table 25: Massachusetts's MSA Payment Allocations: Program area: Budget shortfalls; Fiscal year 2003 allocation: $174,354,740; Fiscal year 2004 expected allocation: $0; Examples of programs receiving or expected to receive allocations: [Empty]. Program area: General purposes; Fiscal year 2003 allocation: 2,830,672; Fiscal year 2004 expected allocation: 250,700,000; Examples of programs receiving or expected to receive allocations: Closing costs of Medfield State Hospital, General Fund. Program area: Health; Fiscal year 2003 allocation: 129,791,226; Fiscal year 2004 expected allocation: 0; Examples of programs receiving or expected to receive allocations: Emergency acute free care pool, HIV health services, senior prescription drug benefit, community health centers, child and adolescent mental health services. Program area: Social services; Fiscal year 2003 allocation: 11,897,237; Fiscal year 2004 expected allocation: 0; Examples of programs receiving or expected to receive allocations: Senior home care/assisted living. Program area: Tobacco control; Fiscal year 2003 allocation: 14,658,821; Fiscal year 2004 expected allocation: 0; Examples of programs receiving or expected to receive allocations: Smoking cessation programs. Total; Fiscal year 2003 allocation: $333,532,696[A]; Fiscal year 2004 expected allocation: $250,700,000; Examples of programs receiving or expected to receive allocations: [Empty]. Source: Massachusetts Executive Office of Administration and Finance, Fiscal Affairs Division. [A] Includes carry-over funds. [End of table] Michigan: Michigan reported receiving $318,400,000 from MSA payments in fiscal year 2003 and expects to receive $273,900,000 in fiscal year 2004. Table 26: Michigan's MSA Payment Allocations: Program area: Budget shortfalls; Fiscal year 2003 allocation: $165,900,000; Fiscal year 2004 expected allocation: $0; Examples of programs receiving or expected to receive allocations: [Empty]. Program area: Education; Fiscal year 2003 allocation: 115,800,000; Fiscal year 2004 expected allocation: 172,700,000; Examples of programs receiving or expected to receive allocations: Scholarships and tuition grants for higher education students, testing program for K-12 students, postsecondary scholarships, nursing scholarships, Michigan Education Savings Plan, general higher education/ community college support. Program area: General purposes; Fiscal year 2003 allocation: 300,000; Fiscal year 2004 expected allocation: 400,000; Examples of programs receiving or expected to receive allocations: Attorney General administrative expenses. Program area: Health; Fiscal year 2003 allocation: 101,600,000; Fiscal year 2004 expected allocation: 108,000,000; Examples of programs receiving or expected to receive allocations: Elder pharmaceutical assistance, Medicaid personal needs allowance, long term care adviser, respite care, Medicaid support, biomedical research and development. Program area: Tobacco control; Fiscal year 2003 allocation: 2,000,000; Fiscal year 2004 expected allocation: 1,000,000; Examples of programs receiving or expected to receive allocations: Education and cessation programs for youth and senior populations. Program area: Unallocated; Fiscal year 2003 allocation: 2,733,422; Fiscal year 2004 expected allocation: 0; Examples of programs receiving or expected to receive allocations: [Empty]. Total; Fiscal year 2003 allocation: $388,333,422[A]; Fiscal year 2004 expected allocation: $282,100,000[A]; Examples of programs receiving or expected to receive allocations: [Empty]. Source: Michigan Office of Health and Human Services and Economic Development, State Budget Office. [A] Includes carry-over funds and interest earned. [End of table] Missouri: Missouri reported receiving $166,919,334 from MSA payments in fiscal year 2003 and expects to receive $143,000,000 in fiscal year 2004. Table 27: Missouri's MSA Payment Allocations: Program area: Budget shortfalls; Fiscal year 2003 allocation: $108,412,043; Fiscal year 2004 expected allocation: $70,715,848; Examples of programs receiving or expected to receive allocations: [Empty]. Program area: General purposes; Fiscal year 2003 allocation: 2,513,684; Fiscal year 2004 expected allocation: 4,426,858; Examples of programs receiving or expected to receive allocations: Programs funded from general revenue, such as education, Medicaid, and corrections. Program area: Health; Fiscal year 2003 allocation: 51,500,000; Fiscal year 2004 expected allocation: 69,726,564; Examples of programs receiving or expected to receive allocations: Missouri Senior Rx program, Medicaid, grants to hospitals for graduate medical education. Program area: Tobacco control; Fiscal year 2003 allocation: 466,064; Fiscal year 2004 expected allocation: 472,829; Examples of programs receiving or expected to receive allocations: Enforcement of state law on underage tobacco use. Program area: Unallocated; Fiscal year 2003 allocation: 4,027,543; Fiscal year 2004 expected allocation: 0; Examples of programs receiving or expected to receive allocations: [Empty]. Total; Fiscal year 2003 allocation: $166,919,334; Fiscal year 2004 expected allocation: $145,342,099[A]; Examples of programs receiving or expected to receive allocations: [Empty]. Source: Missouri Office of Administration, Division of Budget and Planning. [A] Includes carry-over funds. [End of table] Montana: Montana reported receiving $31,166,018 from MSA payments in fiscal year 2003 and expects to receive $28,223,000 in fiscal year 2004. Table 28: Montana's MSA Payment Allocations: Program area: General purposes; Fiscal year 2003 allocation: $18,199,611; Fiscal year 2004 expected allocation: $3,104,530; Examples of programs receiving or expected to receive allocations: Children's health insurance program and related Medicaid costs, youth challenge program for dropouts. Program area: Health; Fiscal year 2003 allocation: 12,466,407; Fiscal year 2004 expected allocation: 21,918,470; Examples of programs receiving or expected to receive allocations: Trust fund whose interest is allocated for new or expanded health care or tobacco control, tobacco prevention, mental health services, and prescription drug coverage for mentally ill. Program area: Tobacco control; Fiscal year 2003 allocation: 500,000; Fiscal year 2004 expected allocation: 3,200,000; Examples of programs receiving or expected to receive allocations: Tobacco cessation and prevention program. Total; Fiscal year 2003 allocation: $31,166,018; Fiscal year 2004 expected allocation: $28,223,000; Examples of programs receiving or expected to receive allocations: [Empty]. Source: Montana Office of Budget and Program Planning. [End of table] Nebraska: Nebraska reported receiving $43,158,793 from MSA payments in fiscal year 2003 and expects to receive $36,700,000 in fiscal year 2004. Table 29: Nebraska's MSA Payment Allocations: Program area: General purposes; Fiscal year 2003 allocation: $47,509; Fiscal year 2004 expected allocation: $88,437; Examples of programs receiving or expected to receive allocations: MSA model statute enforcement. Program area: Health; Fiscal year 2003 allocation: 18,747,566; Fiscal year 2004 expected allocation: 20,866,570; Examples of programs receiving or expected to receive allocations: Behavioral health, public health, minority health, biomedical research, children's health insurance, medical assistance. Program area: Social services; Fiscal year 2003 allocation: 2,666,400; Fiscal year 2004 expected allocation: 2,908,800; Examples of programs receiving or expected to receive allocations: Community-based developmental disability services, respite care assistance. Program area: Unallocated; Fiscal year 2003 allocation: 21,697,318; Fiscal year 2004 expected allocation: 12,816,193; Examples of programs receiving or expected to receive allocations: [Empty]. Total; Fiscal year 2003 allocation: $43,158,793; Fiscal year 2004 expected allocation: $36,700,000; Examples of programs receiving or expected to receive allocations: [Empty]. Source: Nebraska Department of Administrative Services--Budget Division. [End of table] Nevada: Nevada reported receiving $44,753,037 from MSA payments in fiscal year 2003 and expects to receive $38,168,550 in fiscal year 2004. Table 30: Nevada's MSA Payment Allocations: Program area: Education; Fiscal year 2003 allocation: $21,975,217; Fiscal year 2004 expected allocation: $23,254,375; Examples of programs receiving or expected to receive allocations: Scholarship program for students attending a Nevada higher education institution. Program area: General purposes; Fiscal year 2003 allocation: 251,825; Fiscal year 2004 expected allocation: 257,412; Examples of programs receiving or expected to receive allocations: Attorney General office administrative expenses. Program area: Health; Fiscal year 2003 allocation: 13,635,758; Fiscal year 2004 expected allocation: 12,973,487; Examples of programs receiving or expected to receive allocations: Grants for child health services and for persons with disabilities, prescription drugs and pharmaceutical services for low-income seniors, Medicaid waiver program, and endowment fund using interest earnings to provide grants for promoting public health. Program area: Social services; Fiscal year 2003 allocation: 9,852,298; Fiscal year 2004 expected allocation: 6,830,546; Examples of programs receiving or expected to receive allocations: Grants assisting seniors to live independently, other senior services, and a homemaker program. Program area: Tobacco control; Fiscal year 2003 allocation: 4,861,629; Fiscal year 2004 expected allocation: 4,724,891; Examples of programs receiving or expected to receive allocations: Grants for tobacco cessation programs. Total; Fiscal year 2003 allocation: $50,576,727[A]; Fiscal year 2004 expected allocation: $48,040,711[A]; Examples of programs receiving or expected to receive allocations: [Empty]. Source: Nevada Department of Administration, Budget Division. [A] Includes carry-over funds and interest earned. [End of table] New Hampshire: New Hampshire reported receiving $48,900,000 from MSA payments in fiscal year 2003 and expects to receive $42,600,000 in fiscal year 2004. Table 31: New Hampshire's MSA Payment Allocations: Program area: Education; Fiscal year 2003 allocation: $40,000,000; Fiscal year 2004 expected allocation: $39,600,000; Examples of programs receiving or expected to receive allocations: Education trust fund (K-12 education funding). Program area: General purposes; Fiscal year 2003 allocation: 5,900,000; Fiscal year 2004 expected allocation: 3,000,000; Examples of programs receiving or expected to receive allocations: Unrestricted use statewide. Program area: Tobacco control; Fiscal year 2003 allocation: 3,000,000; Fiscal year 2004 expected allocation: 0; Examples of programs receiving or expected to receive allocations: Tobacco use prevention and cessation programs (eliminated for fiscal year 2004). Total; Fiscal year 2003 allocation: $48,900,000; Fiscal year 2004 expected allocation: $42,600,000; Examples of programs receiving or expected to receive allocations: [Empty]. Source: New Hampshire Legislative Budget Assistant's Office. [End of table] New Jersey: New Jersey reported receiving $283,700,000 from MSA payments in fiscal year 2003 and expects to receive $122,000,000 in fiscal year 2004. In addition, New Jersey reported receiving $2,751,814,469 in securitized proceeds in fiscal year 2003 but does not expect to receive securitized proceeds in fiscal year 2004. Table 32: New Jersey's Allocations of MSA Payments and Securitized Proceeds: Program area: Budget shortfalls; Fiscal year 2003 allocation: $329,000,000; Fiscal year 2004 expected allocation: $872,000,000; Examples of programs receiving or expected to receive allocations: [Empty]. Program area: Health; Fiscal year 2003 allocation: 278,700,000; Fiscal year 2004 expected allocation: 122,000,000; Examples of programs receiving or expected to receive allocations: New Jersey family care, community options for seniors, cancer initiatives, senior pharmaceutical assistance program, state cancer center. Program area: Infrastructure; Fiscal year 2003 allocation: 946,000,000; Fiscal year 2004 expected allocation: 608,000,000; Examples of programs receiving or expected to receive allocations: Cancer institute; institutional, transportation and other capital projects. Program area: Unallocated; Fiscal year 2003 allocation: 1,481,000,000; Fiscal year 2004 expected allocation: 0; Examples of programs receiving or expected to receive allocations: [Empty]. Total; Fiscal year 2003 allocation: $3,034,700,000; Fiscal year 2004 expected allocation: $1,602,000,000[A]; Examples of programs receiving or expected to receive allocations: [Empty]. Source: New Jersey Department of Management and Budget. [A] Includes some securitized proceeds received in fiscal year 2003. [End of table] New Mexico: New Mexico reported receiving $43,759,134 from MSA payments in fiscal year 2003 and expects to receive $35,724,987 in fiscal year 2004. Table 33: New Mexico's MSA Payment Allocations: Program area: General purposes; Fiscal year 2003 allocation: $50,308,895; Fiscal year 2004 expected allocation: $35,724,987; Examples of programs receiving or expected to receive allocations: General Fund. Program area: Health; Fiscal year 2003 allocation: 19,497,500; Fiscal year 2004 expected allocation: 0; Examples of programs receiving or expected to receive allocations: Tobacco research, poison control/drug info center, pediatric oncology, telemedicine, trauma and pediatric education, genomics research, diabetes control, HIV/AIDS services, prostate cancer, defibrillators, primary care infrastructure technology, cancer control breast/cervical cancer program, Medicaid, women drug re-entry, female incarceration task force. Program area: Tobacco control; Fiscal year 2003 allocation: $5,900,000; Fiscal year 2004 expected allocation: 0; Examples of programs receiving or expected to receive allocations: Anti-smoking cessation and prevention, youth smoking cessation and prevention. Total; Fiscal year 2003 allocation: $75,706,395[A]; Fiscal year 2004 expected allocation: $35,724,987; Examples of programs receiving or expected to receive allocations: [Empty]. Source: New Mexico Department of Finance and Administration. [A] Includes carry-over funds. [End of table] New York: New York reported receiving $498,300,000 from MSA payments in fiscal year 2003 and expects to receive $334,000,000 in fiscal year 2004. In addition, New York reported receiving no securitized proceeds in fiscal year 2003 but expects to receive $4,200,000,000 in securitized proceeds in fiscal year 2004. Table 34: New York's Allocations of MSA Payments and Securitized Proceeds: Program area: Budget shortfalls; Fiscal year 2003 allocation: $0; Fiscal year 2004 expected allocation: $3,800,000,000; Examples of programs receiving or expected to receive allocations: Medicaid, public health, education, etc.. Program area: Health; Fiscal year 2003 allocation: 458,300,000; Fiscal year 2004 expected allocation: 297,000,000; Examples of programs receiving or expected to receive allocations: Medicaid, indigent care, elderly pharmaceutical program, Family Health Plus, health insurance for the uninsured, breast and cervical cancer treatment and similar programs. Program area: Tobacco control; Fiscal year 2003 allocation: 40,000,000; Fiscal year 2004 expected allocation: 37,000,000; Examples of programs receiving or expected to receive allocations: Tobacco control and prevention activities. Program area: Unallocated; Fiscal year 2003 allocation: 0; Fiscal year 2004 expected allocation: 400,000,000; Examples of programs receiving or expected to receive allocations: [Empty]. Total; Fiscal year 2003 allocation: $498,300,000; Fiscal year 2004 expected allocation: $4,534,000,000; Examples of programs receiving or expected to receive allocations: [Empty]. Source: New York Division of the Budget. Note: These MSA payments include only payments made to the state, which amount to about 51 percent of the annual payments made by the tobacco companies to New York. New York City and counties in the state receive the other 49 percent of the annual MSA payments to New York. [End of table] North Carolina: North Carolina reported receiving $169,200,688 from MSA payments in fiscal year 2003 and expects to receive $155,479,000 in fiscal year 2004. Table 35: North Carolina's MSA Payment Allocations: Program area: Economic development for tobacco regions; Fiscal year 2003 allocation: $89,427,603; Fiscal year 2004 expected allocation: $77,739,500; Examples of programs receiving or expected to receive allocations: Tobacco Trust Fund (Golden LEAF). Program area: General purposes; Fiscal year 2003 allocation: 78,000,000; Fiscal year 2004 expected allocation: 66,800,000; Examples of programs receiving or expected to receive allocations: [Empty]. Program area: Health; Fiscal year 2003 allocation: 6,688,732; Fiscal year 2004 expected allocation: 14,939,500; Examples of programs receiving or expected to receive allocations: Health and Wellness Trust Fund, prescription drug program for seniors. Total; Fiscal year 2003 allocation: $174,116,335[A]; Fiscal year 2004 expected allocation: $159,479,000[A]; Examples of programs receiving or expected to receive allocations: [Empty]. Source: North Carolina Office of State Budget and Management. [A] Includes interest earned in the Tobacco and Health and Wellness Trust Funds. [End of table] North Dakota: North Dakota reported receiving $26,549,833 from MSA payments in fiscal year 2003 and expects to receive $22,972,067 in fiscal year 2004. Table 36: North Dakota's MSA Payment Allocations: Program area: Education; Fiscal year 2003 allocation: $11,947,425; Fiscal year 2004 expected allocation: $10,337,430; Examples of programs receiving or expected to receive allocations: 45 percent of the tobacco settlement funds are deposited as principal in the common schools trust fund and cannot be spent. Program area: Health; Fiscal year 2003 allocation: 53,100; Fiscal year 2004 expected allocation: 137,832; Examples of programs receiving or expected to receive allocations: Dental loan repayment program. Program area: Infrastructure; Fiscal year 2003 allocation: 11,947,425; Fiscal year 2004 expected allocation: 10,337,430; Examples of programs receiving or expected to receive allocations: Water projects. Program area: Tobacco control; Fiscal year 2003 allocation: 2,601,883; Fiscal year 2004 expected allocation: 2,159,375; Examples of programs receiving or expected to receive allocations: Tobacco cessation programs. Total; Fiscal year 2003 allocation: $26,549,833; Fiscal year 2004 expected allocation: $22,972,067; Examples of programs receiving or expected to receive allocations: [Empty]. Source: North Dakota Office of Management and Budget. [End of table] Ohio: Ohio reported receiving $368,998,102 from MSA payments in fiscal year 2003 and expects to receive $297,000,000 in fiscal year 2004. Table 37: Ohio's MSA Payment Allocations: Program area: Budget shortfalls; Fiscal year 2003 allocation: $280,517,810; Fiscal year 2004 expected allocation: $235,040,594; Examples of programs receiving or expected to receive allocations: [Empty]. Program area: Education; Fiscal year 2003 allocation: 15,015,123; Fiscal year 2004 expected allocation: 6,585,835; Examples of programs receiving or expected to receive allocations: Technology enhancement in schools. Program area: General purposes; Fiscal year 2003 allocation: 770,695; Fiscal year 2004 expected allocation: 786,109; Examples of programs receiving or expected to receive allocations: Administration, oversight, and enforcement activities related to the MSA. Program area: Health; Fiscal year 2003 allocation: 8,467,936; Fiscal year 2004 expected allocation: 8,810,671; Examples of programs receiving or expected to receive allocations: Minority health programs, alcohol and drug abuse prevention programs. Program area: Infrastructure; Fiscal year 2003 allocation: 43,815,021; Fiscal year 2004 expected allocation: 28,210,435; Examples of programs receiving or expected to receive allocations: School construction, biomedical research, and technology transfer. Program area: Payments to tobacco growers; Fiscal year 2003 allocation: 16,275,517; Fiscal year 2004 expected allocation: 13,205,356; Examples of programs receiving or expected to receive allocations: Indemnity payments. Program area: Social services; Fiscal year 2003 allocation: 3,500,000; Fiscal year 2004 expected allocation: 3,725,000; Examples of programs receiving or expected to receive allocations: Funding for uncompensated health care of the uninsured and underinsured. Program area: Tobacco control; Fiscal year 2003 allocation: 636,000; Fiscal year 2004 expected allocation: 636,000; Examples of programs receiving or expected to receive allocations: Under-age tobacco use enforcement. Total; Fiscal year 2003 allocation: $368,998,102; Fiscal year 2004 expected allocation: $297,000,000; Examples of programs receiving or expected to receive allocations: [Empty]. Source: Ohio Office of Budget and Management. [End of table] Oklahoma: Oklahoma reported receiving $76,024,898 from MSA payments in fiscal year 2003 and expects to receive $72,571,034 in fiscal year 2004. Table 38: Oklahoma's MSA Payment Allocations: Program area: General purposes; Fiscal year 2003 allocation: $1,689,849; Fiscal year 2004 expected allocation: $1,000,000; Examples of programs receiving or expected to receive allocations: Attorney General's evidence fund. Program area: Health; Fiscal year 2003 allocation: 34,462,765; Fiscal year 2004 expected allocation: 34,230,044; Examples of programs receiving or expected to receive allocations: Mental health and substance abuse, Medicaid, and deposit to tobacco settlement endowment trust fund on behalf of health programs. Program area: Social services; Fiscal year 2003 allocation: 19,621,590; Fiscal year 2004 expected allocation: 17,340,990; Examples of programs receiving or expected to receive allocations: Child welfare, foster care, services for homebound elders and senior nutrition. Program area: Tobacco control; Fiscal year 2003 allocation: 20,250,694; Fiscal year 2004 expected allocation: 20,000,000; Examples of programs receiving or expected to receive allocations: Tobacco prevention and cessation, and deposit to Tobacco Settlement Endowment Trust Fund on behalf of tobacco control programs. Total; Fiscal year 2003 allocation: $76,024,898; Fiscal year 2004 expected allocation: $72,571,034; Examples of programs receiving or expected to receive allocations: [Empty]. Source: Oklahoma Office of State Finance. [End of table] Oregon: Oregon reported receiving $85,254,750 from MSA payments in fiscal year 2003 and expects to receive $71,818,209 in fiscal year 2004. In addition, Oregon reported receiving $450,000,000 in securitized proceeds in fiscal year 2003 but does not expect to receive securitized proceeds in fiscal year 2004. Table 39: Oregon's Allocations of MSA Payments and Securitized Proceeds: Program area: Budget shortfalls; Fiscal year 2003 allocation: $450,000,000; Fiscal year 2004 expected allocation: $0; Examples of programs receiving or expected to receive allocations: [Empty]. Program area: Debt service on securitized funds: [Empty] Fiscal year 2003 allocation: 0; Fiscal year 2004 expected allocation: 2,156,856; Examples of programs receiving or expected to receive allocations: [Empty]. Program area: Health; Fiscal year 2003 allocation: 155,854,729; Fiscal year 2004 expected allocation: 14,608,216; Examples of programs receiving or expected to receive allocations: Oregon health plan/family health insurance assistance program. Program area: Tobacco control; Fiscal year 2003 allocation: 0; Fiscal year 2004 expected allocation: 379,808; Examples of programs receiving or expected to receive allocations: [Empty]. Program area: Unallocated; Fiscal year 2003 allocation: 8,208,216; Fiscal year 2004 expected allocation: 62,881,545; Examples of programs receiving or expected to receive allocations: [Empty]. Total; Fiscal year 2003 allocation: $614,062,945[A]; Fiscal year 2004 expected allocation: $80,026,425[A]; Examples of programs receiving or expected to receive allocations: [Empty]. Source: Oregon Department of Administrative Services. [A] Includes carry-over funds. [End of table] Pennsylvania: Pennsylvania reported receiving $416,918,000 from MSA payments in fiscal year 2003 and expects to receive $360,528,000 in fiscal year 2004. Table 40: Pennsylvania's MSA Payment Allocations: Program area: Health; Fiscal year 2003 allocation: $433,529,000; Fiscal year 2004 expected allocation: $416,918,000; Examples of programs receiving or expected to receive allocations: Health insurance for the uninsured, home and community-based care, contributions to the PACE-net program, tobacco use prevention and cessation, broad-based health research, medical care for workers with disabilities, and uncompensated care. Total; Fiscal year 2003 allocation: $433,529,000[A]; Fiscal year 2004 expected allocation: $416,918,000[A]; Examples of programs receiving or expected to receive allocations: [Empty]. Source: Pennsylvania Governor's Office of the Budget, Bureau of Budget Analysis. [End of table] AMSA payments received one year are allocated the next year. Rhode Island: Rhode Island reported receiving $52,748,551 from MSA payments in fiscal year 2003 and expects to receive $46,876,000 in fiscal year 2004. The fiscal year 2004 amount is an estimate based on market conditions as of June 30, 2002. Table 41: Rhode Island's MSA Payment Allocations: Program area: Debt service on securitized funds: [Empty] Fiscal year 2003 allocation: $0; Fiscal year 2004 expected allocation: $46,876,000; Examples of programs receiving or expected to receive allocations: [Empty]. Program area: General purposes; Fiscal year 2003 allocation: 52,147,879; Fiscal year 2004 expected allocation: 0; Examples of programs receiving or expected to receive allocations: Any program receiving general fund support, which covers all aspects of state government. Program area: Unallocated; Fiscal year 2003 allocation: 600,672; Fiscal year 2004 expected allocation: 0; Examples of programs receiving or expected to receive allocations: [Empty]. Total; Fiscal year 2003 allocation: $52,748,551; Fiscal year 2004 expected allocation: $46,876,000; Examples of programs receiving or expected to receive allocations: [Empty]. Source: Rhode Island Budget Office. [End of table] South Carolina: South Carolina reported receiving $86,312,915 from MSA payments in fiscal year 2003 and expects to receive $74,995,918 in fiscal year 2004. Table 42: South Carolina's MSA Payment Allocations: Program area: Debt service on securitized funds: [Empty] Fiscal year 2003 allocation: $86,312,915; Fiscal year 2004 expected allocation: $74,995,918; Examples of programs receiving or expected to receive allocations: [Empty]. Total; Fiscal year 2003 allocation: $86,312,915; Fiscal year 2004 expected allocation: $74,995,918; Examples of programs receiving or expected to receive allocations: [Empty]. Source: South Carolina Office of State Budget. [End of table] South Dakota: South Dakota reported receiving $25,603,357 from MSA payments in fiscal year 2003 and expects to receive $23,772,672 in fiscal year 2004. In addition, South Dakota reported receiving $278,045,000 in securitized proceeds in fiscal year 2003 but does not expect to receive securitized proceeds in fiscal year 2004. Table 43: South Dakota's Allocations of MSA Payments and Securitized Proceeds: Program area: Debt service on securitized funds: [Empty] Fiscal year 2003 allocation: $60,000,453; Fiscal year 2004 expected allocation: $23,772,672; Examples of programs receiving or expected to receive allocations: [Empty]. Program area: Education; Fiscal year 2003 allocation: 243,647,904; Fiscal year 2004 expected allocation: 0; Examples of programs receiving or expected to receive allocations: Education Enhancement Trust Fund. Total; Fiscal year 2003 allocation: $303,648,357; Fiscal year 2004 expected allocation: $23,772,672; Examples of programs receiving or expected to receive allocations: [Empty]. Source: South Dakota Bureau of Finance and Management. [End of table] Tennessee: Tennessee reported receiving $179,101,745 from MSA payments in fiscal year 2003 and expects to receive $147,800,000 in fiscal year 2004. Table 44: Tennessee's MSA Payment Allocations: Program area: Budget shortfalls; Fiscal year 2003 allocation: $179,101,745; Fiscal year 2004 expected allocation: $0; Examples of programs receiving or expected to receive allocations: [Empty]. Program area: General purposes; Fiscal year 2003 allocation: 0; Fiscal year 2004 expected allocation: 147,800,000; Examples of programs receiving or expected to receive allocations: Allocated to the general fund; not earmarked. Total; Fiscal year 2003 allocation: $179,101,745; Fiscal year 2004 expected allocation: $147,800,000; Examples of programs receiving or expected to receive allocations: [Empty]. Source: Tennessee Department of Finance and Administration. [End of table] Utah: Utah reported receiving $32,642,875 from MSA payments in fiscal year 2003 and expects to receive $27,674,200 in fiscal year 2004. Table 45: Utah's MSA Payment Allocations: Program area: Budget shortfalls; Fiscal year 2003 allocation: $4,336,200; Fiscal year 2004 expected allocation: $9,821,500; Examples of programs receiving or expected to receive allocations: In addition, $40.1 million of previous MSA payments that were in the Tobacco Permanent Trust Fund were appropriated in fiscal year 2003 to cover budget shortfalls. Program area: General purposes; Fiscal year 2003 allocation: 100,000; Fiscal year 2004 expected allocation: 100,000; Examples of programs receiving or expected to receive allocations: Attorney General's office. Program area: Health; Fiscal year 2003 allocation: 11,499,600; Fiscal year 2004 expected allocation: 12,999,600; Examples of programs receiving or expected to receive allocations: Cancer research, immunizations, health promotion. Program area: Reserves/rainy day funds; Fiscal year 2003 allocation: 11,985,200; Fiscal year 2004 expected allocation: 5,534,800; Examples of programs receiving or expected to receive allocations: [Empty]. Program area: Social services; Fiscal year 2003 allocation: 2,000,000; Fiscal year 2004 expected allocation: 2,000,000; Examples of programs receiving or expected to receive allocations: Drug courts, drug board pilot program. Program area: Tobacco control; Fiscal year 2003 allocation: 4,062,700; Fiscal year 2004 expected allocation: 4,062,100; Examples of programs receiving or expected to receive allocations: Tobacco quit line, TV campaign, prevention partnerships. Total; Fiscal year 2003 allocation: $33,983,700[A]; Fiscal year 2004 expected allocation: $34,518,000[A]; Examples of programs receiving or expected to receive allocations: [Empty]. Source: Utah Governor's Office of Planning and Budget. [A] Includes carry-over funds and interest earned. [End of table] Vermont: Vermont reported receiving $30,629,527 from MSA payments in fiscal year 2003 and expects to receive $25,200,000 in fiscal year 2004. Table 46: Vermont's MSA Payment Allocations: Program area: Budget shortfalls; Fiscal year 2003 allocation: $5,100,000; Fiscal year 2004 expected allocation: $0; Examples of programs receiving or expected to receive allocations: [Empty]. Program area: Health; Fiscal year 2003 allocation: 20,430,000; Fiscal year 2004 expected allocation: 20,100,000; Examples of programs receiving or expected to receive allocations: Medicaid and drug treatment. Program area: Tobacco control; Fiscal year 2003 allocation: 5,100,000; Fiscal year 2004 expected allocation: 5,100,000; Examples of programs receiving or expected to receive allocations: [Empty]. Total; Fiscal year 2003 allocation: $30,630,000; Fiscal year 2004 expected allocation: $25,200,000; Examples of programs receiving or expected to receive allocations: [Empty]. Source: Vermont Department of Finance and Management. [End of table] Virginia: Virginia reported receiving $150,029,894 from MSA payments in fiscal year 2003 and expects to receive $126,206,153 in fiscal year 2004. Table 47: Virginia's MSA Payment Allocations: Program area: Economic development for tobacco regions; Fiscal year 2003 allocation: $55,362,410; Fiscal year 2004 expected allocation: $39,703,077; Examples of programs receiving or expected to receive allocations: Economic development projects, infrastructure, education, job training, research, and administration of the Tobacco Indemnification and Community Revitalization Commission. Program area: General purposes; Fiscal year 2003 allocation: 60,541,744; Fiscal year 2004 expected allocation: 50,428,461; Examples of programs receiving or expected to receive allocations: Deposits to the general fund, allocated through state budget process. Program area: Payments to tobacco growers; Fiscal year 2003 allocation: 20,314,770; Fiscal year 2004 expected allocation: 23,400,000; Examples of programs receiving or expected to receive allocations: Indemnification payments to tobacco growers. Program area: Tobacco control; Fiscal year 2003 allocation: 15,135,436; Fiscal year 2004 expected allocation: 12,620,615; Examples of programs receiving or expected to receive allocations: Campaigns to discourage tobacco consumption by minors, research and administration of the tobacco settlement foundation. Total; Fiscal year 2003 allocation: $151,354,360[A]; Fiscal year 2004 expected allocation: $126,206,153; Examples of programs receiving or expected to receive allocations: [Empty]. [End of table] Source: Virginia Department of Planning and Budget. [A] The amount allocated is based on an estimate of payments. Washington: Washington reported receiving $150,654,530 from MSA payments in fiscal year 2003 and expects to receive $124,000,000 in fiscal year 2004. In addition, Washington reported receiving $517,905,000 in securitized proceeds in fiscal year 2003 but does not expect to receive securitized proceeds in fiscal year 2004. Table 48: Washington's Allocations of MSA Payments and Securitized Proceeds: Program area: Debt service on securitized funds: [Empty]. Fiscal year 2003 allocation: $30,000,000; Fiscal year 2004 expected allocation: $36,208,000; Examples of programs receiving or expected to receive allocations: [Empty]. Program area: General purposes; Fiscal year 2003 allocation: 517,905,000; Fiscal year 2004 expected allocation: 0; Examples of programs receiving or expected to receive allocations: Earmarked for state debt service and capital expenditures. Program area: Health; Fiscal year 2003 allocation: 120,654,530; Fiscal year 2004 expected allocation: 87,792,000; Examples of programs receiving or expected to receive allocations: Children's Medicaid; health insurance for low-income residents; grants to community clinics and local public health district assistance; and statewide public health programs, including childhood immunizations. Program area: Tobacco control; Fiscal year 2003 allocation: 17,500,000; Fiscal year 2004 expected allocation: 17,500,000; Examples of programs receiving or expected to receive allocations: Tobacco control and prevention programs. Total; Fiscal year 2003 allocation: $686,059,530[A]; Fiscal year 2004 expected allocation: $141,500,000[A]; Examples of programs receiving or expected to receive allocations: [Empty]. Source: Washington Office of Financial Management. [A] Includes carry-over funds. [End of table] West Virginia: West Virginia reported receiving $65,042,592 from MSA payments in fiscal year 2003 and expects to receive $56,000,000 in fiscal year 2004. Table 49: West Virginia's MSA Payment Allocations: Program area: Health; Fiscal year 2003 allocation: $62,454,159; Fiscal year 2004 expected allocation: $50,149,408; Examples of programs receiving or expected to receive allocations: Institutional facilities operations, medical trust fund. Program area: Tobacco control; Fiscal year 2003 allocation: 5,850,592; Fiscal year 2004 expected allocation: 5,850,592; Examples of programs receiving or expected to receive allocations: Tobacco education program, tobacco retailer education program. Total; Fiscal year 2003 allocation: $68,304,751[A]; Fiscal year 2004 expected allocation: $56,000,000; Examples of programs receiving or expected to receive allocations: [Empty]. Source: West Virginia Department of Administration, State Budget Office. [A] Includes carry-over funds and interest earned. [End of table] Wisconsin: Wisconsin reported receiving $153,923,150 from MSA payments in fiscal year 2003 and expects to receive $135,617,112 in fiscal year 2004. Table 50: Wisconsin's Allocations of MSA Payments and Securitized Proceeds: Program area: Budget shortfalls; Fiscal year 2003 allocation: $598,508,150; Fiscal year 2004 expected allocation: $0; Examples of programs receiving or expected to receive allocations: [Empty]. Program area: Debt service on securitized funds: [Empty] Fiscal year 2003 allocation: 0; Fiscal year 2004 expected allocation: 135,617,112; Examples of programs receiving or expected to receive allocations: [Empty]. Program area: General purposes; Fiscal year 2003 allocation: 138,578,050; Fiscal year 2004 expected allocation: 0; Examples of programs receiving or expected to receive allocations: Assistance to schools, University of Wisconsin, and correctional systems; tax relief for schools, individuals, and organizations; medical assistance programs. Program area: Tobacco control; Fiscal year 2003 allocation: 15,345,100; Fiscal year 2004 expected allocation: 0; Examples of programs receiving or expected to receive allocations: Tobacco cessation and prevention programs. Total; Fiscal year 2003 allocation: $752,431,300[A]; Fiscal year 2004 expected allocation: $135,617,112; Examples of programs receiving or expected to receive allocations: [Empty]. Source: Wisconsin Department of Administration. [A] Includes $598,508,150 of securitized proceeds received in fiscal year 2002 that were allocated in fiscal year 2003. [End of table] Wyoming: Wyoming reported receiving $18,448,472 from MSA payments in fiscal year 2003 and expects to receive $12,133,528 in fiscal year 2004. Table 51: Wyoming's MSA Payment Allocations: Program area: Health; Fiscal year 2003 allocation: $7,717,391; Fiscal year 2004 expected allocation: $10,525,978; Examples of programs receiving or expected to receive allocations: Substance abuse treatment. Program area: Social services; Fiscal year 2003 allocation: 2,072,569; Fiscal year 2004 expected allocation: 4,679,148; Examples of programs receiving or expected to receive allocations: Adolescence services and drug court. Program area: Tobacco control; Fiscal year 2003 allocation: 3,000,000; Fiscal year 2004 expected allocation: 3,000,000; Examples of programs receiving or expected to receive allocations: Tobacco prevention, regional prenatal programs, community tobacco prevention activities. Program area: Unallocated; Fiscal year 2003 allocation: 5,658,512; Fiscal year 2004 expected allocation: 0; Examples of programs receiving or expected to receive allocations: [Empty]. Total; Fiscal year 2003 allocation: $18,448,472; Fiscal year 2004 expected allocation: $18,205,126[A]; Examples of programs receiving or expected to receive allocations: [Empty]. Source: Wyoming Substance Abuse Division. [A] Includes carry-over funds and interest earned. [End of table] [End of section] Appendix V: GAO Survey on States' Allocations of Fiscal Years 2003 and 2004 Master Settlement Agreement Payments: [See PDF for image] [End of figure] [End of section] Appendix VI: GAO Contact and Staff Acknowledgments: GAO Contact: Lawrence J. Dyckman, 202-512-3841: Staff Acknowledgments: Charles M. Adams, Gary Brown, A. Donald Cowan, Thomas James, Stuart Kaufman, Rosellen McCarthy, Judy Pagano, Amelia Shachoy, Bonita Vines, and Kristy Williams made key contributions to this report. (360341): FOOTNOTES [1] Under these agreements, tobacco companies will pay these 4 states $40 billion over 25 years. [2] Previously known as Philip Morris Incorporated. [3] Several other tobacco companies have joined the MSA since the agreement was signed. [4] The $206 billion includes $204.5 billion in estimated total payments to the 46 states, the District of Columbia, and the five U.S. territories and an additional $1.8 billion for other initiatives agreed to in the MSA, including a national foundation dedicated to significantly reducing the use of tobacco products by youth and administrative costs of the National Association of Attorneys General. [5] While the District of Columbia and the five U.S. territories are included in the agreement, this study reports only on the 46 states that signed the agreement. [6] U.S. General Accounting Office, Tobacco Settlement: States' Allocations of Phase II Funds, GAO-03-262R (Washington, D.C.: Dec. 3, 2002) and U.S. General Accounting Office, Tobacco Settlement: States' Allocations of Fiscal Years 2002 and 2003 Master Settlement Agreement Payments, GAO-03-407 (Washington, D.C.: Feb. 28, 2003). [7] U.S. General Accounting Office, Tobacco Settlement: States' Use of Master Settlement Agreement Payments, GAO-01-851 (Washington, D.C.: June 29, 2001). [8] Throughout this report, "fiscal year" refers to the state's fiscal year. In most states, the fiscal year begins on July 1 and ends on June 30. The exceptions are in Alabama and Michigan, where the fiscal year begins on October 1, and in New York, where the fiscal year begins on April 1. [9] Our study focuses on the states' share of MSA payments and does not include information on MSA payments made to counties and cities in New York and California. [10] Six states allocated securitized proceeds for fiscal year 2003: California, Oregon, South Dakota, and Washington allocated all of the securitized proceeds they received in fiscal year 2003; New Jersey allocated some of the securitized proceeds it received in fiscal year 2003; and Wisconsin received securitized funds in fiscal year 2002, and allocated them in fiscal year 2003. [11] Three states expect to allocate securitized proceeds for fiscal year 2004: California and New York expect to allocate all of the securitized proceeds they expect to receive in fiscal year 2004, and New Jersey expects to allocate the remainder of the securitized funds it received in fiscal year 2003. [12] Fiscal year refers to the state's fiscal year. [13] Allocation refers to funds appropriated or otherwise designated (e.g., earmarked for a trust fund or an endowment that has a specific purpose). It also includes funds designated for debt servicing on bonds issued when a state securitized all or a portion of the MSA funds. [14] See appendix V for a copy of the survey that we sent to each of the 46 states. [15] The National Association of Attorneys General monitors the actual payments made to states as determined by an independent auditor. [16] As we reported in 2001, California counties, four California cities, New York counties, and New York City each receive a share of MSA payments. [17] GAO-01-851 and GAO-03-407. GAO's Mission: The General Accounting Office, the investigative arm of Congress, exists to support Congress in meeting its constitutional responsibilities and to help improve the performance and accountability of the federal government for the American people. 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