Tobacco-Fund Spending Initiative Still on Ballot

In a victory for health care officials, a judge Wednesday refused to kill a ballot measure that would force Orange County to spend nearly $750 million from the national tobacco settlement on health care.

“This is good news for us,” said Dr. J. Brennan Cassidy, immediate past president of the Orange County Medical Assn.

Supervisors placed the initiative, Measure H, on the Nov. 7 ballot after supporters gathered 115,000 signatures, far more than the 71,000 required. The county then turned around and sued to pull it from the ballot.

Orange County Superior Court Judge Jack K. Mandel said in his ruling that he was concerned about “setting a precedent” that would void the electorate’s participation before it voted.

“You’re asking the judiciary to stop the people’s right to vote,” Mandel said.

Measure H would require the county to spend 80% of the $912 million in settlement funds using this formula:

* 19% for services for seniors and the disabled, including transportation, long-term care and in-home support;

* 23% for indigent care by emergency and on-call physicians;

* 12% for tobacco use prevention, anti-addiction and mental health programs;

* 20% for community, mobile and hospital clinics;

* 6% for hospitals to fund uncompensated emergency and trauma care.

The remaining 20% would go to law enforcement.

The county argued that passage of the initiative would be unconstitutional because it would decide for the current and future boards how tobacco windfall funds would be spent.

Deputy County Counsel James Harman said the county might appeal.

The tobacco settlement, spread over 25 years, would mean $30 million to $38 million a year to the county.

Last November, supervisors voted to spend most of the money on their two biggest priorities: cutting debt incurred during the county bankruptcy and reducing jail overcrowding.

The board’s own plan, which was harshly criticized by health care professionals who wanted the money tied to health needs, calls for the early repayment of debts.

Officials said it would save the county $110 million in interest payments over 10 years.

The county filed suit against the initiative, contending Measure H violates state law by limiting how the board of supervisors spends county funds.

“The board of supervisors by law is best vested with the decision to determine how to spend this money,” Harman argued.

Thomas W. Hiltachk, a Sacramento attorney representing medical groups, said voters had every right to determine how to allocate tobacco settlement funds.

Measure H is backed by a coalition of doctor, hospital and community groups, community clinics, and a majority of the county’s elected representatives in Sacramento and Washington.