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The Ohio Senate has passed a $763.7 million tobacco budget that includes $20.7 million to help farmers transition away from growing tobacco.

The funds stem from the 1998 Master Settlement Agreement, which settled state lawsuits against the tobacco industry. The Southern Ohio Agricultural and Community Development Foundation (SOACDF) is one of several funds established under the agreement.

Through loans, grants and education assistance the foundation helps growers and communities that are affected by the reduction in demand for tobacco transition to other agricultural crops.

Rocky Black, OFBF director of legislative affairs, said funding for SOACDF has remained stable even though the state uses the tobacco money aggressively for school funding. He said two tobacco companies have started withholding payments, which has created some concern.

"All of this money is going into escrow, which makes the future of the fund pretty uncertain," he said.

According to the attorney general's office, No. 2 cigarette maker R. J. Reynolds Tobacco Co. paid Ohio about $69 million but withheld an estimated $32.5 million. No. 3 maker Lorillard paid Ohio about $28 million but withheld an estimated $5.5 million. Ohio Attorney General Jim Petro has filed a lawsuit against the companies.

Other provisions in the FY 2007-2008 Tobacco Budget include:
$648.5 million for the Education Facilities Trust Fund.
$48.9 million to the Biomedical Research and Technology Transfer Fund.
$34.2 million to the Ohio's Healthy Priorities Trust Fund.
$10 million to the Education Facilities Endowment Fund.
$8.7 million to the Education Technology Trust Fund.
$3.4 million to the Tobacco Use Prevention and Cessation Trust Fund.

$620,000 to the Law Enforcement Improvements Fund.