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Tobacco Master Settlement Agreement State Profile: Kansas

The Finance Project has developed state profiles to show how Master Settlement Agreement (MSA) funds have been allocated between 2000 and the present fiscal year. Profiles also highlight how states are using MSA funds to support programs and initiatives for youth.

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Revenue Received by Year (Dollar amounts in thousands)

  Revenue Received Securitized Revenue TOTAL Revenue Notes
2000/2001 $119,940 $0 $119,940  
2002 $60,999 $0 $60,999  
2003 $61,169 $0 $61,169  
2004 $52,349 $0 $52,349  
2005 $53,131 $0 $53,131  
2006 $48,775 $0 $48,775  
2007 $51,053 $0 $51,053  
2008 $67,436 $0 $67,436  
2009 $72,019 $0 $72,019  
2010 $60,476 $0 $60,476 Payments received as of 5/20/10
Total $647,346 $0 $647,346  

FY10 Allocation of Funds

Historical Allocations of Funds (in dollars/ in percentages)

Background

According to 1999 legislation, all MSA funding is distributed to the Kansas Endowment for Youth (KEY) to support youth programs. Funds are to remain in this Fund, expect when transferred to the Kansas Children’s Initiative Fund as otherwised authorized by law.  The 1999 law also created the Kansas Children’s Cabinet, a board of appointees from the Governor and Legislature, responsible for recommendations on how to spend MSA funds in the endowment. The Legislature appropriates KEY funding annually after reviewing the Children’s Cabinet’s recommendations.

Implications for Youth Programs

MSA funds currently support programs and services for youth, including:

  • Early Head Start;
  • Early Childhood Block Grant;
  • Smart Start Kansas;
  • community-based abuse prevention;
  • newborn screening;
  • immunization outreach;
  • juvenile justice and sanction grants;
  • children’s mental health initiative;
  • child care and child welfare community services; and
  • smoking prevention grants.

Highlights

  • A Children’s Cabinet was created to oversee expenditures from the state’s tobacco Master Settlement Agreement (MSA) which are held in the Kansas Endowment for Youth (KEY) Fund. Ninety-five percent of the MSA funds are dedicated to improve the health and well-being of children and youth in the state.  For more information, see the Promising Practice Profile on the Kansas Children’s Cabinet.

Legislative Proposals

None listed
 

Allocation of Funds (Dollar amounts in thousands)
  Health Social Services/ Education Tobacco Control Assistance to Tobacco Farmers/ Economic Development Budget Shortfalls Debt Service on Securitized Funds Infra- structure General Purpose/ Rainy Day Reserves Other Unallocated Funds Tax Reduction Total
2000/2001   $34,962 $500         $91,038       $126,500
2002 $2,000 $37,500 $500         $10,000   $10,989   $60,989
2003 $9,286 $34,753 $500   $28,200             $72,739
2004 $1,800 $40,933           $11,044       $53,777
2005 $1,338 $50,550 $500         $753       $53,141
2006 $5,736 $32,870 $1,000         $9,955       $49,561
2007 $5,973 $30,128 $1,000         $9,817       $46,919
2008 $5,739 $36,305 $1,000         $9,000       $52,044
2009 $7,550 $59,977 $1,000         $9,000       $77,527
2010 $2,345 $55,968 $1,000   $14,292     $9,000       $82,605

*GAO did not collect data on budget shortfalls in FY2000-2001.
*Total allocations for FY03-04 include carry-over funds and interest earned.
*Total allocations for FY05 include interest earned.
*Total allocations for FY09-10 include carry-over funds and interest earned.

Allocation of Funds (Percentages)
  Health Social Services/ Education Tobacco Control Assistance to Tobacco Farmers/ Economic Development Budget Shortfalls Debt Service on Securitized Funds Infra- structure General Purpose/ Rainy Day Reserves Other Unallocated Funds Tax Reduction
2000/2001   28% 0%         72%      
2002 3% 61% 1%         16%   18%  
2003 13% 48% 1%   39%            
2004 3% 76%           21%      
2005 3% 95% 1%         1%      
2006 12% 66% 2%         20%      
2007 13% 64% 2%         21%      
2008 11% 70% 2%         17%      
2009 10% 77% 1%         12%      
2010 3% 68% 1%   17%     11%      

ALLOCATION CATEGORIES: The allocation categories used in these charts were developed by the U.S. Government Accountability Office (GAO). Click on the following link for definitions of these categories.

Sources

  • McKinley, L. Dixon, and A. Devore. National Conference of State Legislatures, State Management and Allocation of Tobacco Settlement Revenue 2003 (September 2003)
  • Campaign for Tobacco-Free Kids, A Broken Promise to Our Children: The 1998 State Tobacco Settlement Nine Years Later (December 2007)
  • United States Government Accountability Office, Report to Congressional Requesters, GAO-03-407, Tobacco Settlement: States' Allocations of Fiscal Years 2002 and 2003 Master Settlement Agreement Payments (February 2003)
  • United States Government Accountability Office, Report to Congressional Requesters, GAO-04-518, Tobacco Settlement: States' Allocations of Fiscal Year 2003 and Expected Fiscal Year 2004 Payments (March 2004).
  • United States Government Accountability Office, Report to Congressional Requesters, GAO-05-312, Tobacco Settlement: States' Allocations of Fiscal Year 2004 and Expected Fiscal Year 2005 Payments (March 2005)
  • United States Government Accountability Office, Report to Congressional Requesters, GAO-06-502, Tobacco Settlement: States' Allocations of Fiscal Year 2005 and Expected Fiscal Year 2006 Payments (April 2006)
  • 2006-2010 data provided by the Kansas Division of Budget