DPH drafts plan on use of tobacco settlement funds

Public Health Secretary Joseph Kevin Villagomez has asked the House Ways and Means Committee to consider the strategic plan drafted by the department in appropriating funds received by the CNMI government in connection with the tobacco industry settlement.

Mr. Villagomez made the recommendations in response to a proposed measure which will establish a Master Settlement Agreement Trust Fund for the initial deposit of all funds from the tobacco settlement.

Introduced by Rep. Malua T. Peter, HB 12-290 will ensure the preservation of funds until the CNMI Legislature has determined the appropriate allocation of funds. The bill requires the Finance Secretary to establish a separate CNMI Tobacco Settlement Trust Fund for deposit of all funds, past and future, received by the CNMI.

Mr. Villagomez, however, expressed concern on how the legislature plans to allocate the funds specifically the purposes and activities. “Is the Legislature going to set up the priority in which the funds should be allocated, if so, based on what type of standard and criteria,?” he asked.

The DPH Chief has noted that a high percentage of deaths in the CNMI are caused by diseases related to smoking. Lung cancer rates for Chamorro males, for example, already exceeded the rates of lung cancer mortality among males in the mainland U.S.

DPH has estimated that 18 percent of the total cost of hospital days in 1994 for Chamorro and Carolinian patients can be attributed to smoking. Mr. Villagomez said the figure does not even include the additional costs of outpatient visits, emergency services, medications, or off-island referrals. Anyone with lung cancer is routinely sent off-island for treatment.

With the current tobacco settlement agreement, Mr. Villagomez said there is a possibility that the funding could be reduced or cease altogether as the settlements against the tobacco industry could have a devastating effect on its viability.

For example, although the settlement agreement went into effect in 1998, funds were not received until the spring of the year 2000.

DPH has formed an ad hoc committee to establish a tobacco control and prevention program for the CNMI with representatives from various government agencies such as the Public School System, Youth Affairs, non-profit organizations and DPH. (Lindablue F. Romero)