Call to Order and Roll Call
The 4th meeting of the Tobacco Settlement Agreement Fund Oversight Committee was held on Wednesday, June 3, 2015, at 10:00 AM, in Room 129 of the Capitol Annex. Representative Wilson Stone, Chair, called the meeting to order, and the secretary called the roll.
Present were:
Members: Senator C.B. Embry Jr., Co-Chair; Representative Wilson Stone, Co-Chair; Senators Carroll Gibson, and Dennis Parrett; Representatives, Tom McKee, Terry Mills, Ryan Quarles, and Jonathan Shell.
Legislative Guest: Representative Will Coursey.
Guests: Roger Thomas, Joel Neaveill, Bill McCloskey, Angela Blank, and Brian Murphy, Governor’s Office of Agricultural Policy and Andrew Waters, Health Promotion Branch Manager, Department for Public Health.
LRC Staff: Lowell Atchley, Kelly Ludwig, and Kelly Blevins.
The May 6, 2015 minutes were approved, by voice vote, upon motion by Rep. Quarles and second by Rep. McKee.
Governor’s Office of Agricultural Policy
Mr. Roger Thomas, Executive Director, Mr. Joel Neaveill, Chief of Staff, and Mr. Bill McCloskey, Director of Financial Services, Governor’s Office of Agricultural Policy (GOAP), testified about project funding decisions made by the Agricultural Development Board (ADB) during its May meeting.
Mr. Neaveill discussed tobacco settlement funding allocations for the previous months under the County Agricultural Improvement (CAIP), Deceased Farm Animal, and Shared-use Equipment programs.
Mr. Neaveill and Mr. Thomas responded to several questions from Co-Chair Stone and Senator Gibson regarding tobacco settlement appropriations to counties. According to their testimony, a total of 118 counties receive the allocations by virtue of varying degrees of tobacco production in those counties prior to the passage House Bill 611 in the 2000 General Assembly. In their discussion, Mr. Neaveill described the formula created as a result of the bill which determines how much counties receive based on their “tobacco dependency” at the time. Mr. Neaveill indicated one factor used in the formula is adjusted each year, a county’s total personal income.
Representative Stone observed, and the speakers agreed, that counties receiving the largest allocation of tobacco funds generally were the larger tobacco counties. Mr. Thomas pointed out that Robertson County, a small county in population and land area, was highly tobacco dependent in the early 2000s, and thus currently receives a substantial amount of tobacco settlement funds.
Mr. McCloskey turned to the board’s approval of on-farm energy programs. A total of 38 applicants were approved for energy-saving projects throughout the state. Most of the applications came from poultry and dairy farmers. Responding to several committee members’ questions, Mr. McCloskey said the board will consider whether to renew the program later this year. He said farmers may apply more than once, but there is a lifetime limit of $25,000 for the cost-share funds. Mr. Thomas noted the program has evolved, with grain farmers actively seeking funds early-on and currently, poultry and dairy farmers.
Mr. McCloskey summarized one project that was denied funding, Kentucky Welding Institute, Fleming County. He indicated a board committee reasoned there were opportunities for welding training at local Kentucky Community and Technical College System locations.
The GOAP representatives summarized two projects that received funding, Mason County Board of Education, $20,000 in Mason County funds to buy equipment at the high school to improve and expand instruction and knowledge in diversified production agriculture; and Pulaski County Board of Education, $64,058 in county funds to build and equip a greenhouse for the high school agriculture department.
Mr. McCloskey and Mr. Neaveill responded to Senator Parrett that in the past, no state funds were ever approved for greenhouse projects.
Tobacco Prevention and Cessation Program
Mr. Andrew Waters, Health Promotion Branch Manager, Department for Public Health, reported on the Tobacco Prevention and Cessation Program’s use of tobacco settlement funds.
According to Mr. Waters’ testimony, Kentucky’s smoking rate is slowly declining as is the smoking rate for high school students. Outreach and education efforts included a booth at last year’s Kentucky State Fair, a youth anti-tobacco endeavor at Bourbon County High School, a smoke-free policy instituted by a Northern Kentucky housing authority, the expansion of smoke-free public school campuses, continuing underage sales training for retailers, and local health department initiatives, such as nicotine replacement therapy, assistance to help expectant mothers to quit smoking, cessation marketing, and other health department anti-smoking promotions.
Mr. Waters told the committee that in FY 2015, nearly 90 percent of the tobacco settlement funds appropriated went to support cessation efforts in local communities.
Responding to Representative Stone, Mr. Waters indicated the tobacco cessation appropriation for FY 2015 totaled over $2.4 million. Appropriation amounts have declined through the years.
He responded to Representative McKee that, even in the face of declining funding, local health departments have managed to gain positive results in their cessation efforts. Responding further to Representative McKee, he said Kentucky is one of 48 states falling below Centers for Disease Control and Prevention recommended levels for funding tobacco usage prevention.
Documents distributed during the meeting are available with meeting materials in the LRC Library. There being no further business, the meeting was adjourned.