Missouri receives tobacco money

JEFFERSON CITY, Mo. -- Missouri's revenue from a national tobacco settlement now stands at $389 million.

The state received $44.2 million on Dec. 31 as its annual January payment from the settlement between big tobacco companies and states that sued over the costs of treating tobacco-related illnesses.

Missouri expects to receive $4.5 billion over 25 years as its share of the settlement. The January payment -- which arrived 10 days ahead of Thursday's deadline -- was the fourth to date, with another due April 15, according to Attorney General Jay Nixon's office.

Tobacco settlement payments are figured according to several factors: an annual base payment; an annual inflation adjustment equal to 3 percent or the consumer price index, whichever is greater; and an annual adjustment based on the decline or rise in cigarette shipments.

The projections assume an annual decrease in tobacco sales.

Missouri's tobacco settlement revenues are budgeted to be spent on health care, anti-tobacco programs, life sciences research and early childhood programs. But part of the money also has been used to cover budget shortfalls.