The concept of a government windfall is a foreign one now, as the federal, state and local governments focus mostly on cutting services.
Back in 2001, though, state lawmakers and then-Gov. Tom Ridge were handed a once-in-a-lifetime windfall. A class action suit by 46 states against the tobacco industry resulted in a $206 billion settlement payable over 25 years.
Pennsylvania's share is 5.75 percent, more than $11 billion.
After a lengthy debate early in 2001, Ridge and the lawmakers did exactly the right thing with the windfall. By law, they dedicated all of the revenue from the settlement to health care-related programs such as smoking cessation, health-related research at in-state universities, expanded health insurance for low-income residents and assistance for struggling hospitals.
Now, however, with the state facing a $4 billion deficit, the administration and lawmakers have begun to look at the 2001 law as a mere guideline.
Auditor General Jack Wagner has detailed how the Rendell administration and Legislature diverted some of the funds in recent years to cover holes in the budget.
This year, the Corbett administration eliminated the AdultBasic health insurance program for low-income workers, claiming that the state lacked the $55 million to sustain it for a year. At the same time, he has proposed diverting some of the tobacco settlement funds to create a business development loan fund.
In the coming fiscal year, the state will receive $324 million in tobacco settlement funds. It will average about $315 million a year through 2025.
Due to the Great Recession and the government's own failure to rein in runaway health care costs, the need for using the settlement funds for health care is greater than ever.
Lawmakers and Corbett should rededicate the funds to those purposes. Rather than diverting money to his pet business loan fund, the governor can use some of the more than $540 million in unanticipated tax collections that the state government has realized since last July.
The Legislature and Ridge reached a rare consensus in the public interest a decade ago. Their successors should honor it through 2025.