Tobacco funds to help state, local governments
Master settlement agreement provides two payments in 2003

New York State, New York City and the 57 counties outside New York City are scheduled to receive a total of $273 million in tobacco settlement payments on December 31, 2002 and January 10, 2003, according to Attorney General Eliot Spitzer. These payments are about 10 percent higher than the corresponding settlement payment made last year, and increases the total amount received since 1999 to over $3 billion.

The $273 million payment will be divided among New York State, New York City and the individual counties, with the state scheduled to receive $140 million (51 percent), New York City receiving $73 million (27 percent), and a total of $60 million (22 percent) being paid to the other 57 counties.

The payment is part of the 1998 tobacco Master Settlement Agreement ("MSA"), which requires tobacco companies to pay over $200 billion to 52 states and territories, and imposes significant marketing and advertising restrictions on the participating tobacco manufacturers. New York is expected to receive about $25 billion during the first 25 years of the settlement, with additional payments continuing thereafter.

The payment is not due officially until January 10, 2003, but some of the tobacco companies will be making the payment early for the fourth consecutive year. As a result, the state and its local governments will see a portion of the funds on December 31, 2002, and the remaining amounts on January 10, 2003. Another payment is due in April 2003.

2003 is the last year in which two payments will be made. Starting in 2004, there will be a single payment made in April of each year. (This is pursuant to the original MSA.)

While there will be an increase in the April 2004 payment, it will not be enough to offset to expiration of the annual January payments.

This is the eighth "major" payment that the state and local governments have received under the MSA, each of which has exceeded $240 million. The payments received so far are set forth below:

Year	Initial Payment	April Payment	Other Payments	Total
1999	$315m	None	None	$315m
2000	$274m	$441m	None	$715m
2001	$247m	$519m	$6 million	$772m
2002	$248m	$701m	$7m	$956m
2003	$273m	*	*	$273m

Total to date: $3.031b
*To be determined later

The anticipated year-end payments, the share of the total and the amount paid to New York State and area counties are:

• State of New York - 51.176% - $139,882,822.15
• Genesee - 0.118% - $322, 537.38
• Monroe - 1.536% - $4,198,452.69
• Orleans - 0.078% - $213,202.68