Monday, July 3, 2006
Contact: Spence Jackson, 573-751-0290
Blunt Issues Executive Order to Better Manage Tobacco Settlement Money
JEFFERSON CITY–Gov. Matt Blunt issued an executive order to fix the inefficient system established by previous administrations for receiving payments as part of the state’s settlement with big tobacco companies.
Blunt’s executive order rescinds a Holden order that created several accounts for managing the $140 million per year the state receives from tobacco companies. The change will result in annual savings of $459,587 in tobacco settlement funds.
The oversight and management of so many different accounts was an inefficient use of staff time and financial transfers between accounts created an unnecessary financial burden for taxpayers.
Blunt is replacing five accounts with one to be known as the Healthy Families Trust Fund to receive and distribute funds from the tobacco settlement. Blunt’s Commissioner of Administration Mike Keathley discovered the wasteful practice and worked with the governor’s office to create a more efficient system.
“I commend Commissioner Keathley for bringing this to my attention and am pleased we will save taxpayers the unnecessary costs for managing multiple accounts when one will suffice,” Blunt said. “This is indicative of the types of practices we are correcting all across state government. It has helped us guide our state from choppy fiscal waters to solid ground.”
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