Tobacco Settlement Funds
(Fund for a Healthy Maine)
Tobacco Settlement Payments (TSP’s) from tobacco manufacturers under the Master Settlement Agreement (MSA) accrue as dedicated revenue to the Fund for a Healthy Maine (FHM), which was established specifically to receive, segregate and allocate the TSP’s. These settlement payments are the primary revenue source for the FHM, which is not technically a fund for accounting purposes, but is treated as a separate fund for budgeting purposes only. The FHM is a group of Other Special Revenue Fund accounts with one main account into which funds are deposited. Related program accounts receive funding from the main account based on allocations by the Legislature. Any unspent allocations within the program accounts at the end of a fiscal year lapse back to the main account.
Beginning in FY 2006, the FHM also began receiving a portion of the revenue from “Racino” revenue, revenue collected from slot machines at a commercial race track. The FHM also retains interest earnings on balances in the main account.
The Treasurer of State is required to report at least annually on or before the 2nd Friday in December to the joint standing committee of the Legislature having jurisdiction over appropriations and financial affairs and the joint standing committee of the Legislature having jurisdiction over health and human services matters. The reports summarize the activity related to the Fund for a Healthy Maine. (Treasurer’s Reports)