Lorillard
the Tobacco Institute 950000 Proposed Budget
Fields
- Type
- BUDG, BUDGET/BUDGET REVIEW
- CHAR, CHART/GRAPH/MAPS
- Alias
- 91082676/91082764
- Site
- N89
- Area
- PETERSON,AL/FINANCE
- Characteristic
- OVER, OVER SIZE DOCUMENT
- Litigation
- Nyag/Produced
- Date Loaded
- 28 Apr 1999
- Named Organization
- A Philip Randolph Education Fund
- Aclu
- Ada
- Alec
- Alexis De Tocqueville Inst
- American Agricultural Movement
- American Agriculture Movement
- American Civil Liberties Union
- American Legislative Exchange Council
- Assn of Wa Businesses
- Assn or Industries
- Bc+T
- Business Council on Indoor Air
- Bw, Brown & Williamson
- C+B
- Ca Congress
- Cdc
- Citizen Action
- Citizens for Tax Justice
- Coalition of Labor Union Women
- Comm of Council
- Congressional Fire Services Inst
- Coordinating Comm
- Council of State Govt
- Csg
- Ctj
- Economic Policy Inst
- Epa, Environmental Protection Agency
- Epi Ca
- Ets
- FDA, Food and Drug Administration
- Federation of Southern Cooperatives
- Finance Comm
- Fl Council
- Freedom to Advertise Coalition
- Gary Peterson Economic Studies
- Greater Nd Assn
- Iaq
- Initiative Campaign
- Labor Council for Latin American Adv
- Labor Management Comm
- Madison Chamber of Commerce
- Management Comm
- Md OSHA
- Mn Wholesaler Assn
- Natl Assn of State Fire Marshals
- Natl Conference of State Legislature
- Natl Council of Senior Citizens
- Natl Tobacco Council
- Natl Volunteer Fire Council
- NC Business + Industry Assn
- NC Farm Bureau
- NC Free
- NC Retail Merchants Assn
- Nd Grocers Assn
- Nemi
- Nfib
- No New Tax Coalition
- Ny Assn
- Ny Business Council
- Ny Convenience Store Assn
- Ny Restaurant Assn
- Ny Tavern Assn
- Oh Retail Assn
- Ok Assn of Tobacco + Candy
- Ok Assn of Vendors
- or Food Industry
- or Hotel Assn
- or Restaurant Assn
- OSHA, Occupational Safety & Health Administration
- Pa Food Merchants Assn
- Pa Tobacco Farmers
- Pension Comm
- PM, Philip Morris
- Price Waterhouse
- Ri Convenience Store Assn
- Ripley Tobacco Festival
- RJR, R.J.Reynolds
- Sad
- Savarese + Associates
- SC Chamber of Commerce
- SC Convenience Store Assn
- SC Retail Merchants Assn
- Sd Innkeepers Assn
- Sd Retail Merchants Assn
- Senter + Associates
- Sioux Falls Chamber of Commerce
- Sparber + Associates
- TI, Tobacco Inst
- Tico, Comm of Counsel(TI)
- Tiec, Executive Comm(TI)
- Tn Assn of Businesses
- Tn Restaurant Assn
- Tn Wholesale Grocers Assn
- Tob Growers Info Center
- Tobacco Growers Information Comm
- Tobacco Industry Labor Management Comm
- Tri Data
- Tx Assn of Businesses
- Tx Oil Marketers Assn
- Tx Restaurant Assn
- Tx Retailers Assn
- Ut Food Industry Assn
- Ut Hotel + Motel Assn
- Ut Taxpayers Assn
- Va Assn of Counties
- Va Chamber of Commerce
- Va Farm Bureau
- Va Free
- Va Retail Merchants Assn
- Vt Grocers Assn
- Wa Legal Foundation
- Wa Restaurant Assn
- Wa Retailers Assn
- Wa State Hotel Assn
- Wa State Tavern Assn
- Wi Mfg + Commerce
- Wi Petroleum Marketers Assn
- Wi Retail Merchants Assn
- Wi Tobacco Farmers
- Wv Chamber of Commerce
- Wv Retailers Assn
- Wy Hotel + Motel Assn
- Wy Taxpayers Assn
- Xcsl
- Named Person
- Adams, W.
- Avedon, D.
- Caputo, N.
- Carter, A.
- Chilcote, S.
- Cronan, S.
- Daniels, J.
- Dawson, B.
- Dieman, G.
- Donahue, T.
- Donoho, P.
- Evans, S.
- Featherstonhaugh, J.
- Fitzpatrick, E.
- Forscey, M.
- Freeland, G.
- Goelling, L.
- Hilderley, D.
- Holayter, W.
- Hrycaj, C.
- J, C.T.
- Jarvis, J.
- Junkins, L.
- Kaiser, H.
- Kaiser, L.
- Lauria, T.
- Mansinne, S.
- Merryman, W.
- Michel, L.
- Mickens, W.
- Mihas, T.
- Miller, R.
- Moore, A.
- Morris, R.A.
- Morris, R.O.
- Oconnor, J.
- Ortis, F.
- Orzechowski, W.
- Pruett, R.
- Radell, M.
- Rita, M.
- Senter, D.
- Shofe, A.
- Surgeon General
- Thomas, D.
- Wahby, D.
- Waxman
- Weiland, D.
- Wolper, R.
- Woodson, W.
- Yoe, C.
- Master ID
- 91082633a/2764
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GOALS & OBJECTIVES FOR 1995
Public Affairs Division
The Tobacco Institute
v w
The Public Affairs Division (PAD) of The Tobacco Institute is designed to manage several
broad areas of legislative support and support to allied groups and independent
consultant experts to help TI and its member companies meet the goals and objectives
of the industry. The basic day-to-day activity of PAD's involvement includes the following:
A. Provide legislative support for Institute and industry programs on all federal,
state and local legislative issues of concern to the industry.
This includes, but is not limited to, the following: hearing coordination and
assistance, including preparation of expert witnesses and materials relating
to their presentations; outreach to potential allies; preparation of issue
materials for general public and specific audiences; on-line computer
searches and data retrieval for TI, member company staff, lawmakers, allies
and others; regular collection and dissemination of information on
legislation; review and dissemination of literature on tobacco-related matters
of interest to the industry; work with outside consultants and legal counsel
on appropriate matters relating to PAD programs and projects.
B. Provide similar support for TI and the industry on federal regulatory matters,
including OSHA, FDA and other agencies.
C. Develop and implement TI/member company strategies and tactics for work
with tobacco-specific, as well as broad-based, agricultural groups. Much
of this activity is supported by TI through the National Tobacco Council, the
Tobacco Growers' Information Committee and support to liberal elements
in the farm community.
D. Through membership in the Tobacco Industry Labor Management
Committee (LMC) work closely with tobacco-specific and broad-based
segments of organized labor on issues of mutual concern. This also
includes work with liberal groups that are affiliated, at least in spirit, with the
organized labor movement.
Thus, PAD participation in TI/industry activities is delivered in three ways: through (1) TI-
specific programs, (2) work with agriculture allies and (3) cooperation with liberal/labor
groups. In these areas PAD develops and disseminates materials on important tobacco
issues. PAD also develops and implements programs associated with those materials
and/or issues.
Legislative Support
The PAD role in supplying elemental legislative support for TI and the industry has basic
costs associated with it (A & B). These costs represent about 30% of the Public Affairs
budget. They include the following: staff compensation and benefits; travel; clearance
work on materials with legal counsel; work with consultant on issues; subscriptions and
books; on-line service charges; postage and delivery; reproduction and printing; meeting
preparation; telephone; business taxes; computer services; data processing allocations;
occupancy costs; and other "administrative charges."
The estimated administrative costs in 1994 and proposed costs for 1995 (including
administrative support to the NTC) are listed below. In the case of a few items such as
"books & subscriptions" and "reproduction & printing," the percentage,increase requested
is significant. The reason is simple. In these cases, TI either eliminated funding for or cut
back severely in these areas in 1994. For 1995 we view as essential the reproduction of
outdated issue brochures and other materials and the renewal of certain publications and
research services.
1994 1995
($000) ($000)
Legalexpenses
-- Tl legal expenses ........................ 125 ..... 150
- OSHA-related legal expenses ................ 625 ..... 250
Travel .............................. 30 ...... 50
Tax/public smoking consultant expense ........... 55 ...... 60
Books & subscriptions ......................... 12 ...... 30
Postage & delivery .......................... 48 ...... 25
Reproduction & printing ....................... 43 ..... 145
Telephone/fees/taxes/dues/misc./etc ............. 15 ...... 24
Staff compensation .................. ...... 608 ..... 642
Employee benefits .......................... 164 ..... 174
Employee recruitment ........................ 26 ...... 10
Occupancy allocation ....................... 303 ..... 303
Data processing allocation ..................... 69 ...... 70
On-line research services ...................... 48 ...... 85
2171 2018
For 1995 these necessary administrative costs that enable our staff to perform basic
functions should actually e rease. This is due in large measure to the possible drop in
legal costs associated with federal OSHA. It should be noted, however, that OSHA legal
fees will still be substantial and could be higher than predicted once the extent of rebuttal
comments and other needs become clear at the first of next year.
2
We recommend important adjustments in two budget categories for 1995: "professional
fees" and "support for tobacco and other organizations." Both are related to TI-specific
programs and projects. The items listed below either call for new funding or sianificant~
increased funding. The issues in question and the rationale for the activities are as
follows:
Tobacco Taxes
General
. Update the economic data upon which the industry bases its models and
projections. The data were last updated in 1992 using 1990 figures. With
Management Committee approval on September 13, 1994, we are moving
to provide 1994 data for industry use. The information will be ready, at least
in preliminary fashion, by winter 1995. The cost is 30K (new funding).
. Government officials and anti-tobacco advocates will be citing new "social
cost" figures from the CDC and elsewhere to try to bolster their case for
increased tobacco taxes., Rebuttal of those "studies" is very important.
The cost is 75K (new funding).
. TI's chief economist works closely with leading figures at the Alexis de
Tocqueville Institution (AdTI). Some member companies support the
organization. Opinions expressed and promoted by AdTl frequently support
industry arguments on economic and other matters. We recommend a
grant in 1995 of 20K (new funding) from TI to AdTI.
State-specific
. State tax increase proposals in the range of one dollar or more will not be
uncommon in 1995. State Activities envisions an increased need for cross
border studies and on-the-scene testimony and one-on-one meetings with
lawmakers. Staff at PM and RJR who work on these issues agree that TI
should be prepared in this area. They do not have duplicative programs in
existence at their companies. The cost is about 75K (new funding) for 1995
for studies and a modest increase for witness appearance costs (increase
15 to 40K).
3
Public Smokina
General
The industry must continue to seek the support of independent experts in
the areas of ETS and IAQ. No "recruitment" work has been done in more
than a year, as is becoming all too evident. The current group of
independent scientists available as expert witnesses has shrunk and many
of those who remain are stale. *
We must add new, independent witnesses on ETS and IAQ. Even a
modest search and educational program will cost a minimum of 300K (new
funding) for 1995. This is a time-consuming and difficult task. In addition,
it will be more difficult in the mid-90's than it was in the mid-80's to find
scientists willing to speak frankly and publicly on this very controversial
issue.
Federal & State
. In 1994 we expect to disburse 565K in consultant fees for preparation and
participation in OSHA hearings. The first round of hearings is scheduled to
end in December, according to OSHA. This estimation is, at best, extremely
optimistic. In addition federal OSHA will continue to receive significant
attention and require rebuttal of anti-tobacco witness statements and other
work that will carry through all of 1995. We see a budget of 200K (a
decrease of 365K from 1994) as the absolute basic minimum to continue
to be OSHA participants.
. With continuing federal OSHA activity, the inevitable anti-smoking bills from
Waxman and others, the likely increase in state OSHA smoking regulations,
as well as the expected large number of state and key local public smoking
battles, testimony by ETS and IAQ experts remains essential for 1995.
We recommend a slight increase in ventilation consultant fees (130 to
150K). We hope we can have a slight decrease in our comment and
testimony budget line item on ETS (110 to 100K).
. In addition, scientific consultants are going to have to begin to participate
more fully in appropriate scientific forums in 1995. TI slashed this activity
to zero in 1994, but we eventually spent 20K on such meetings at the direct
request of our member companies. We recommend a realistic budget for
this activity in 1995: an increase from 20 to 60K.
4
Although member companies (and TI in the past) have programs to help
enlist the assistance of the business community on IAQ and ETS, a frank
accounting makes it clear that the business community needs further
education on these matters and needs it immediately. TI proposes two
modest programs to help achieve some business understanding and
cooperation:
1. Support for the Business Council on Indoor Air (BCIA). BCIA is one
of the few business groups that has and can continue to express the
position that a general systems approach to IAQ is sensible, not
necessarily cost prohibitive and preferable to smoking bans. BCIA
will say this in its federal OSHA testimony. TI dropped support for
the group in 1994. We recommend support of 50K (new funding) for
1995.
2. Many within the business community are either ill-informed or have
been misled regarding federal, state and local smoking laws and
regulations. There also is confusion concerning issues of privacy,
how the ADA may relate to smoking concerns, etc. We recommend
retaining a labor law expert to help us determine more effective ways
to reach key elements of the business community (50K in new
funding).
Advertising & Promotion
. Pressure will continue with regard to advertising, point-of-sale materials and
other promotional concerns. We foresee a need for state and federal
testimony and comments in these areas for 1995. We recommend a
budget of 35K (new funding), an amount that will allow for expert
testimony/comments in up to five instances.
. Much is made of antis' claims that tobacco advertising somehow
encourages children to smoke. A study looking into this claim by an
independent group, such as FAC (Freedom to Advertise Coalition) would
help educate lawmakers and the public if promoted properly. FAC might
consider expanding the study to include advertising for other products
deemed suitable for use only by adults. The cost of such a study and
promotion would be about 50K (new funding).
. Although some member companies offer support to the ACLU and
Washington Legal Foundation, we recommend that TI offer these groups
modest support on behalf of the entire industry. This was done effectively
5
in past years; TI still has some of the best, most direct contacts within both
groups. We recommend 25K to the ACLU (new funding) and 35K to the
WLF (new funding) for 1995.
Fire Safety
. TI's fire safety consultants participate in functions with members of the fire
community, prepare and disseminate reports and work diligently to keep the
lines of communication open. Those lines must be kept open in 1995. We
had two sets of fire consultants in the first half of 1994. We recommend
one group in 1995 at a cost of 150K versus the total 165K in 1994
(decrease of 15K in funding). To assist our consultants in their work we
recommend modest increases in our contributions to state fire marshals,
and volunteer firefighters (8 to 17K).
. We also recommend a pilot smoke detector maintenance program for
volunteer firefighters. Early indications from member companies with fire
programs suggest that such a program would complement their own
activities. The cost is approximately 160K (new funding).
Support to Agricultural Organizations
The agricultural community forces the public to look at the human face behind the
tobacco industry. The growers' efforts in 1994 against unfair tobacco excise tax increase
were absolutely essential in helping us reach our goals on that core objective. The
agricultural community also is vital in public smoking issues, including EPA activities; and
other matters as well, primarily at the federal level, but to a degree at the state/local level.
The farm groups meet with lawmakers and the media, and through various farm groups
we are able to share information with their memberships. In addition, our tobacco
agricultural allies bring other farm/ag voices to the table, voices we could not attract
without the support of the NTC, TGIC and others. These groups are also willing to work
with independent groups and TI to support studies and other educational materials.
TI supports agricultural work through the National Tobacco Council, the Tobacco
Growers' Information Committee, minority/liberal farm groups (Senter & Associates,
Federation of Southern Cooperatives) and related avenues.
6
Much of TI's general budget assets are used to assist farm groups in that we share TI-
prepared materials with them, help them edit and distribute documents, work with them
on press needs and in a myriad of other ways. That support will again be vital in 1995.
The NTC budget was included under the general TI budget on page two. It is noted
again here to provide an idea of all the specific grants for farm groups.
item 1994 1995
($000) ($000)
National Tobacco Council (NTC) ................ 50 ...... 70
Tob. Growers' Info Center ..................... 40 ...... 38
Senter & Associates ......................... 60 ....... 72
Federation of Southern Cooperatives ............. 20 ...... 20
American Agriculture Movement .................. 0 ...... 15
170 215
We see a need for only minor changes in our agricultural programs. We recommend a
more aggressive program to attract support from liberal and minority agricultural voices.
That is best achieved through work with Senter & Associates, the AAM and the
Federation of Southern Cooperatives.
Support to the Tobacco Industry Labor Management Committee (LMC)
Support from organized labor and liberal groups associated with organized labor will be
essential in 1995 on a number of matters --both federal and state -- in legislative, as well
as regulatory, forums. As with the agricultural community, work by the LMC puts a
human face on the tobacco industry. The LMC also channels the natural energies of a
politically astute labor constituency in directions of mutual concern.
It is appropriate to work with organized labor through the formal LMC structure. That is
a major reason why one sees such a dramatic difference in the percentage of the budget
given over to support for, say, agriculture groups versus support for the separate LMC
entity. This formal committee structure must be maintained.
For 1995, we are recommending to the LMC that it continue its support at the same level
for most of the groups it supported in 1994. Additionally, we recommend essentially the
same staff/ consultant structure as in 1994, with possible inclusion of one additional
consultant. A complete LMC 1994-95 budget comparison is attached. What follows is
a discussion of the significantly altered or new items recommended for the LMC in 1995.
7
General
. There may be an opportunity for the LMC to retain the services of one
additional prominent consultant for 1995. This consultant would add
significant stature to the LMC. The costs associated with this potential slot
is approximately 110K (new funding).
Federal
Even if health care reform is put to bed early in 1995, there remains a
serious chance that Congress will attempt to earmark tobacco tax increases
to deficit reduction or other programs. It seems prudent, therefore, to
support a study through Citizens for Tax Justice that points out the
regressive nature of excise taxes, specifically tobacco excises. The charge
to the CTJ will be to attempt to explore and promote its study in a new and
compelling manner. Such a program is expected to cost the LMC
approximately 60K (new funding).
. With talk of FDA regulation and other draconian matters, the BC&T would
like support from the LMC to conduct a study of the effects of such drastic
possibilities on tobacco's workforce. The study and its promotion would
cost approximately 75K (new funding).
State
. Among the industry's state legislative experts there is unanimous agreement
that anti-tobacco efforts will be significantly increased in the states in 1995
over 1994. States will be scrambling to meet their own health care needs
(Medicaid, indigent care, etc.); some will face deficits and still others will try
to earmark tobacco taxes for specific programs, including tobacco control.
. For organized labor to raise a credible voice against regressive tobacco
taxes, it must have in hand a progressive alternative to offer
liberal/mainstream lawmakers. A progressive plan, researched by CTJ
and/or the Economic Policy Institute and promoted by state Citizen Action
chapters, could be adopted to fit labor's needs in most states with a large
organized labor presence. A study of this sort, coupled with promotion in
several states, would require a grant from the LMC of approximately 115K
(new funding).
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State activities experts recommend an increase in the number of state-
specific LMC representatives. Specifically, the LMC is being asked to bring
on consultants for the following states or areas, in addition to those already
in place: California, Iowa, New York, Texas, New England and Minnesota.
Two states in which the LMC offered support in past years, Virginia and
Michigan, could be dropped in the view of state experts. That nets out to
a cost for state LMC consultants of 533K for 1995 versus 400K in 1994
(133K In additional funding).
9
