By Shea Andersen
Tribune Reporter

SANTA FE - A bill to abolish the New Mexico's $57 million tobacco settlement fund and use the money to pay down the state's Medicaid debt has passed a crucial Senate committee.

Senate Bill 298, sponsored by Senate Majority Leader Manny Aragon, an Albuquerque Democrat, passed the committee Tuesday on a 5-4 party line vote. It now goes to the Senate floor, but a vote has not been scheduled.

Gov. Bill Richardson had called for using the tobacco settlement for Medicaid in his budget plan. The state's Medicaid deficit is about $100 million, according to the Office of Finance and Administration.

"The governor has stated that the state needs to prioritize our needs. Health care and children's insurance are among the governor's greatest concerns," Richardson spokesman Billy Sparks said.

The state currently divides its $45 million yearly allotment from a settlement with tobacco companies: Half goes to the permanent fund and half is available for health and education programs.

Aragon's bill had been tabled by the same committee Sunday night, after several hours of debate and testimony that at times became acrimonious.

The vote Monday was quick, and split down party lines. No amendments were offered.

Programs for smoking cessation and prevention that were funded previously would still be funded under the Richardson's proposed budget, Sparks said. He added the majority of states receiving tobacco settlement money use it for Medicare and Medicaid.

But the vote bothered Sen. Joe Carraro, an Albuquerque Republican, who lamented the potential loss of tobacco prevention and cessation programs.

"This is horrible," Carraro said. "I think it's a shame that we're throwing it all away. There's no political courage here. Or guts."

Aragon said the programs were not targeted.

"It was never the administration's intent not to fund those programs," Aragon said in an interview. "I think there was just a lot of misunderstanding as to what was going on. We definitely need that money to make this budget balance, and (the committee) recognized that."

Tobacco prevention advocates, however, criticized the move to take all $57 million.

"The tobacco funds really are our future for reducing health care costs in the long run," Linda Siegle, a lobbyist for the American Cancer Society, said. "Without the settlement funds allocated to the areas they're intended for, we're never going to reduce teen smoking or help adults stop smoking."

New Mexico is to receive an estimated $1 billion over 25 years under the 1998 settlement of a lawsuit brought by states against tobacco companies.

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