Kansas has received its annual tobacco settlement. Attorney General Derek Schmidt announced that the settlement payment totaled $62.2 million.
This total is within range of payments received by Kansas in recent years. Schmidt said this is a result of a legal settlement that Kansas entered into in 2012 with several tobacco companies. This settlement was created to stabilize annual payments and to resolve a long-running dispute that had put future years' payments at risk.
"We are managing the settlement proceeds in a way calculated to minimize the spikes or drops in receipts from year to year so that legislators and other Kansans can plan reliably," said Schmidt.
This annual payment reimburses the state for funds previously appropriated by the Legislature to pay the current fiscal year's cost of programs financed from tobacco settlement proceeds. This is due to the timing of the annual tobacco payment not aligning with the state budget cycle.
Kansas receives a payment each April. The amount fluctuates due to several variables such as annual sales of certain tobacco products.
Tobacco companies agreed to pay more than $6 billion in 46 states this year as part of the longstanding settlement.