(inadvertently deleted but resurrected by BizzyBlog; the above is the commenter\’s full comment.)

The whole tobacco settlement has reeked of opportunism from the beginning, and as a way to get more money to spend without having to ask voters for a tax increase.

I am as unhappy with how the money has been treated in the past as you are (I think), but as I understand it, the stop-smoking campaign money is now history — and I believe prematurely compared to original intent.

LATER THOUGHT: I do not believe that you *the states* could have, or should have, just taken the money that was supposed to be *reimbursement* for past medical costs and just spend it on other things. If it is as you stated, then the money should have been given back to the taxpayers who paid the state all of the supposedly excessive Medicaid and other medical costs in the first place. What is the basis for doing otherwise?

Actually, the GOP has diverted 100% of the settlement payments since FY02 to plug holes in the GRF. The total diverted to date is $580 million. See here for more info.
In addition, the settlement was for reimbursement of past costs, not bankrolling future costs. Because these were sunk costs, it is reasonable for the state to utilize the funds as needed. However, I find Strickland’s structured plan to be much more palatable than random budget-hole-plugging.