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State may abolish foundation, raid its coffers
$230M of $270M in anti-smoking money would go toward economic stimulus plan.
Wednesday, April 30, 2008
COLUMBUS — Legislators and Gov. Ted Strickland hit on a novel way to end a legal battle holding up their economic stimulus plan: abolish the group that filed the lawsuit.
The House is expected to approve legislation today, April 30, that would abolish the Ohio Tobacco Prevention Foundation. "We're going to put an end to this costly discussion once and for all and move ahead with the economic stimulus package," said House Speaker Jon Husted, R-Kettering.
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The Senate is expected to take up House Bill 544 next week, said Maggie Ostrowski, spokeswoman for Senate President Bill Harris, R-Ashland. Strickland would sign the bill, said Keith Dailey, the governor's spokesman.
The $1.57 billion economic stimulus plan backed by Husted, Harris and Strickland calls for using $230 million that had been allocated to the foundation and its anti-smoking programs.
The foundation filed a lawsuit to block legislation that would liquidate the foundation's $270 million endowment, transfer $230 million to a jobs fund and give the foundation $40 million to cover its obligations.
If the foundation is abolished, the lawsuit couldn't continue, Husted said.
The bill would transfer responsibilities of the foundation to the state health department.
Calls to the foundation were not returned on Tuesday.
