November 19, 1998 FOR IMMEDIATE RELEASE
Contact: Melissa Forsythe or Mark Pfeiffer

Governor Paul Patton today issued this statement:

"The proposed tobacco settlement is an issue of national import but also a very personal matter to Kentucky’s farmers and their families, who for generations have set tobacco, stripped it, and banked this legal crop for their livelihood. I want to say to each and every one of you who farm tobacco, that as governor, this has been my most pressing concern for some time. In the last week, the responsibility of protecting your interests has been my most important task. This is an historic time in your life, in my life, and truly for all of Kentucky. I have consulted throughout with your leadership, and now I want to assure every farm family, we will continue to do our best to preserve your ability to sustain the rural life and values that make our Commonwealth unique. I understand that each farm family is anxious and unsure of the future.

I and my staff have analyzed the proposed settlement with the tobacco companies as thoroughly as we can in the limited time allowed by the deadline. We have consulted with a vast array of knowledgeable and interested parties within and outside of Kentucky. We have evaluated alternative courses of action. After giving this very important subject as much consideration as I know how to do, I am recommending to Attorney General Ben Chandler that he enter into the proposed agreement on behalf of the Commonwealth.

I do so for the following reasons:

1. It appears that most other states are accepting the proposal. For Kentucky to not claim its portion when the other states are, would not be in the best interest of our citizens.

2. For us to pursue independent legal action would be expensive and would entail substantial risk of achieving lesser results.

3. The settlement comes close to reimbursing the Commonwealth for the direct health care expenses we have incurred during the past 20 years and anticipate over the next 25 years because of the use of tobacco products by individuals. The Commonwealth is responsible for paying those costs for 164,000 public employees, over half a million Medicaid beneficiaries, and others such as university employees whose healthcare benefits are financed by state appropriation.

4. Public health concerns are addressed, and I have been assured by Kentucky’s Public Health Commissioner that this settlement sufficiently targets anti-smoking efforts.

5. This settlement will reduce the risk of federal legislation to further regulate and overtax tobacco, and bankrupt the tobacco industry.

This agreement sets the stage for us to begin serious discussions with the tobacco companies about the future of the Kentucky farmer and the tobacco-dependent farm communities of Kentucky.

I have and intend to continue to oppose any action by the federal government which would bankrupt the major tobacco companies or cause them to produce tobacco products offshore. In return for that support, I expect these companies to protect the financial integrity of the growers and their communities.

I have served notice that I expect substantial and long-term recognition of the economic responsibility the companies have if the partnership between the companies, the growers, and the tobacco-states’ political leaders is to continue to be effective.

I expect to begin these discussions in the near future and I expect that the conclusion will be consistent with the proposal I outlined in my letter to Judge Carlton on November 18^th. Kentucky farmers must have financial protection for loss of tobacco income.

As important as the tobacco companies are to our future, the growers and the tobacco-dependent communities are more important.

Kentucky’s farmers have my personal assurance that I will continue to negotiate on their behalf, to protect their ability to earn a living and keep their family farms."