THE TOBACCO INSTITUTE 910000 BUDGET

State and Local Strategies of the Tobacco Industry

THE TOBACCO INSTITUTE 910000 BUDGET

Date: 30 Oct 1990
Length: 42 pages
91083521-91083562
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Abstract

Itemizes 1991 Tobacco Institute budget by division/account. Identifies projected source of TI funding by member tobacco company, with an estimated total member contribution of $38,894,000.00. Names legislative consultants and applicable budgets for each.

Fields

Named Organization: ACADEMIC SCIENTIFIC CONSULTANTS; AK ASSOCIATES; AMER, AMERICAN TOBACCO; BISHOP LIEBERMAN; C+B; CA CHAMBER OF COMMERCE; CA COIN MACHINE ASSN; CA HISPANIC CHAMBER OF COMMERCE; CHICANOS FOR LA CAUSA; CONSOLIDATED CIGAR; CONWOOD; CSG; CT GROCERS ASSN; CULBRO GENERAL CIGAR; DATRA HERZOG; EPA, ENVIRONMENTAL PROTECTION AGENCY; GRIFFIN JOHNSON + ASSOCIATES; HARAS; HELME; IATCD; IL CHAMBER OF COMMERCE; JACK SCHREDER + ASSOCIATES; JAMES N JULIANA ASSOCIATES; KITCHENS + ASSOC; KY MUNICIPAL LEAGUE; LA GROCERS ASSN; LARUS EDGEWORTH; LEGISLATURE MEDIA SCIENTIFIC CONSULTANTS; LENEXA; LM, LIGGETT & MYERS; MADISON GROUP; MARTIN HALEY; MD RESTAURANT ASSN; ME GROCERS ASSN; MIDDLETON; MONTGOMERY; NATL TOBACCO COUNCIL; NCSL; NEW HANOVER; NIELSEN MERKSAMER; OSHA, OCCUPATIONAL SAFETY & HEALTH ADMINISTRATION; PA CHAMBER OF COMMERCE; PA REST ASSN; PATCDA CONVENTION; PAUL HASTINGS; PINKERTON; PM, PHILIP MORRIS; RALEIGH WAKE; RJR, R.J.REYNOLDS; SIERRA RESEARCH; STATE ACTIVITIES POLICY COMM; TAN, TOBACCO ACTION NETWORK; TGIC; THOMAS DOTSON; TI, TOBACCO INST; US TOBACCO; WEITZMAN; WHITE CONSULTING GROUP; WHOLESALER ASSOC CONVENTION; WILLARD AUGE; WUNDER RYAN
Named Person: ADAMS,D; ADLER,N; ALDERSON,A; ANDERSON,J; ARENA,E; ARMSTRONG,G; AROS,R; AVEDON,D; BAIRD,R; BARBEROUSSE,R; BELIVEAU,S; BENSON; BENSON,K; BEREANO,B; BODRON,EB; BOISSE,M; BONE,R; BONE,RW; BOSSON,P; BRITTON,J; BULGER; BURNEY; BYRD; CANNELL,W; CARLOW; CARTEER; CARTER,S; Christian, J. (BW Smoke & Leaf Chemistry Analyst, RD&E)
Leaf Chemsitry; COHEN,R; COLLINS,AR; COOPER,N; CORNELL,W; COYNE,B JR; COYNER,W; CRAWFORD,H; CRAWFORD,V; CRAY,J; CRIM,R; DEWITT,B; DINGLE; DONOHO,P; DUDLEY,D; DUNN,D; EK,A; ETEMADI,S; EVANS; FEATHERSTONHAUGH,J; FORSCEY,M; FRITZ,W; FRUECHTENICHT,TF; GRIFFIN,JP; HALSAN,S; HAMMOCK,J; HAUSEY,W; HAYES,F; HEALY; HILL,J; HOFFMAN,E; HOLLINGS; ISAACSON; JACKSON; JEFFERSON; JOHNSON,W; JONES,W; JUDGE,M; JURICH,R; KATZ,J; KELLEY,B; KELLEY,J; KELM,T; KENNEDY; KENYON,G; KERNODLE,O; KIMURA,WK; KING; Kirby, D.
Defense; KRAFT; KROGSENG,D; LEWIS,R; LYONS,T; MALMGREN,K; MARTIN,C; MCADAM,R; MCGOVERN,P; MIHAS,T; MILLER,E; MINSHEW,G; MITCHELL; MITCHELL,J; MITCHELL,W; MORA,S; MURPHY,J; NANCE,K; NYMAN,M; OGBURN,D; OGRADY,P; ORZECHOWSKI,W; OYYILIE,R; PEHLER,T; PENDERGAST,WE; PETERS,W; POFFENBURGER,D; PRICE,R; RADCLIFFE,W; RAMQUIST,J; RANDLE,R; RASTAKUSH; REYNOLDS,W; RITA,M; ROBERTS,D; RODEN,W; RUYLE,S; SADOWSKI,C; SCENT,W; SHERIDAN,K; SICULA,P; SMITH; SMITH,C; SMITH,S; SMITH,T; SPAULDING,K; SPEARMAN,GM; SPELLACY,B; STEWART,J; SUZUKI,N; TAYLOR,J; THOMSON,W; TROY,A; VALENTINE,G; VINOVICH,R; VITAGLIANO,A; WALKER,K; WASKER,C; Waxman, Henry A. (U.S. Representative)
(D-CA) Was chairman of the House Energy and Commerce Committee's Subcommittee on Health and the Environment in 1994.; WHITE,R; White, R.A. (PM Asst. Controller 1972-85)
Defense; WHITESELL,C; WHITLEY,CO; WILSON,L; WIMMER,J; WOLF,A; WOOD,JG; WOODSON,W; YENOWINE,G; ZAMBARDI,L
Subject: Budgets; Interagency Coordination; legislation

Document Images

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The Tobacco Institute Projected 1990 Source of Funds Statement Assuming Expenditures of $38,894,000 Payments from Member companies Initial Annual Dues Additional Annual Dues Total Amount Percent Philip Morris $876,392 $18,048,760 $18,925,152 48.7% R. J. Reynolds 615,643 12,678,695 13,294,338 34.2% Lorillard 166,076 3,420,232 3,586,308 9.2% American 144,444 2,506,014 2,650,458 6.8% Liggett & Myers 66,806 108,194 175,000 0.4% U.S. Tobacco 46,225 46,225 0.1% Pinkerton 39,100 39,100 0.1% Conwood 35,115 35,115 0.1% Consolidated Cigar 15,000 15,000 0.0% Helme 10,670 10,670 0.0% Culbro/General Cigar 10,000 10,000 0.0% Middleton 3,634 3,634 0.0% Larus/Edgeworth 3,000 3,000 0.0% Total Payments from Members $2,032,105 $36,761,895 $38,794,000 99.7% Interest Income 100,000 0.3% Totals $38,894,000 100.0% ZZ9£80~6 Prepared: 11/05/90

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The Tobacco Institute Projected 1991 Source of Funds Statement Assuming Expenditures of $40,426,000 and that Initial Annual Dues Remain at 1990 Levels Payments from Member Companies Initial Annual Dues Additional Annual Dues Total Amount Percent Philip Morris $876,392 $18,827,758 $19,704,150 48.7% R. J. Reynolds 615,643 13,225,916 13,841,559 34.2% Lorillard 166,076 3,567,852 3,733,928 9.2% American 144,444 2,614,175 2,758,619 6.8% Liggett & Myers 66,806 58,194 125,000 0.3% r U.S. Tobacco 46,225 46,225 0.1% N Pinkerton 39,100 39,100 0.1% Conwood 35,115 35,115 0.1% Consolidated Cigar 15,000 15,000 0.0% Helme 10,670 10,670 0.0% Culbro/General Cigar 10,000 10,000 0.0% Middleton 3,634 3,634 0.0% Larus/Edgeworth 3,000 3,000 0.0% Total Payments from Members $2,032,105 $38,293,895 $40,326,000 99.8% Interest Income 100,000 0..2% Totals $40,426,000 100.0% NZ9£80~6 Prepared: 11/05/90

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THE TOBACCO INSTITUTE 1991 BUDGET Federal Relations Division 1990 1991 Estimated Proposed Authorized % Change Budget Expenditures Authorized Budget Positions 90 Est vs ($000) ($000) Positions ($000) Requested 91 Budget 1201 Federal Relations Dvision $5,637 $5,868 15 $6,190 15 5% Totals $5,637 $5,868 15 $6,190 15 5% N F+ FED.DSR (TYP1) 10/30/90 8ZSE80G6

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The Tobacco Institute 1991 BUDGET COST CENTER Federal Relations Division No. 1201 1990 1990 1991 BUDGET ESTIMATED BUDGET ($000) ($000) ($000) Account #7301 - Professional Fees Honoraria payments $ 160 $ 200 $ 100 Veterans/military project Counsel to establish sup- port in key states 100 - - TOTAL $ 260 $ 200 $ 100 ~ 1 ry~ C) W W/~ Vl G7 FED.DRBA(DRBA) 10/30/90 2-7

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The Tobacco Institute 1991 BUDGET COST CENTER National Headquarters No. 1401 1990 1990 1991 BUDGET ESTIMATED BUDGET Account #5100 - Postage & DeliverV NATIONAL HEADQUARTERS National TAN mobilizations $ 60,000 $ 45,000 Contingency for unanticipated postage/freight (permits, BRM fees, materials, shipments) 15,000 10,000 Federal airline issue (mailgrams) - 1,000 TOTAL $ 75,000 $ 56,000 $ 45,000 $ 60,000 SAD.DRBA(DRBA) 10/30/90 3-7

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Notes

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THE TOBACCO INSTITUTE 1991 BUDGET State Activities Division udget 1990 Estimated Authorized Expenditures Positions Proposed Budget Authorized ~ Change Positions 90 Est vs Requested 91 Budget Headquarters Administration $9,294,300 $9,246,000 17 $9,897,400 17 7% Field Staff 3,047,300 3,112,556 27 3,213,358 27 3% Tort Reform 211,500 205,200 - 222,500 - 8% $12,553,100 $12,563,756 44 $13,333,258 44 6% w i ~ National Tobacco Council 59,000 70,500 - 64,000 - < 9%> $12,612,100 $12,634,256 44 $13,397,258 44 6% NEW1400 (TYP1) 1991 10/30/90 LE5E80L6

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The Tobacco Institute 1991 BUDGET COST CENTER National Headquarters No. 1401 1990 1990 1991 BUDGET ESTIMATED BUDGET Account #4700 - Furniture, Fixtures & Equipment NATIONAL HEADQUARTERS $ 20,000 $ - $ 20,000 Reg I - copier - 6,800 - Reg V - copier - 5,000 - Reg VIII - fax - 3,400 - Reg VIII - furniture - 3,000 - TOTAL $ 20,000 .$ 18,200 $ 20,000 SAD.DRBA(DRBA) 10/30/90 3-6

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THE TOBACCO INSTITUTE 1991 BUDGET Federal Relations Division Authorized Positions 1990 - 27 Authorized Positions Requested 1991 - 27 1990 BUDGET 1990 ESTIMATED ACCOUNT ($000) ($000) 2800 Staff Compensation $1,064 $ 888 3200 Employee Benefits 288 240 3900 Travel 860 880 4700 Furniture, Fixtures & 18 15 Equipment 5100 Postage & Delivery 17 25 5200 Reproduction, Printing & 20 45 Drafting 5400 Other Office Expense 135 135 5500 Membership & Staff Training 30 20 5800 Legal Fees 500 950 6000 Legislative Consultants 2,000 2,000 7300 Professional Fees 260 200 7400 Purchased Administrative 10 35 service 7700 Contributions 10 10 8000 Computer Services 35 35 9100 Data Processing Allocation 390 390 Totals $5,637 $5,868 1991 BUDGET ($000) $1,126 304 25 30 143 30 950 2,100 100 10 $6,190 FED.SUM (TYP5) 10/30/90 2-2

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THE TOBACCO INSTITUTE 22-Aug-90 SlA9L/1RY OF LEGAL FEES PAID IN 1990 FEDERAL RELATIONS Covfngtan & Burling 450,000) 950,000 EMpert witnesses for congressional hearings 50,000 1 STATE ACTIVITIES Covington & BurLing 550,000 900,000 Other Firms 82,000 58,500 PUBLIC AFFAIRS Cavington & Burling rvision of Academic Scientific ConsuLtants Supervision of Legislative/Media Scientific Cansultants (1309) GENERAL ADMINISTRATION Product liability litigatian Covington & Burting Other firms Covington & Burling - general 4' v ~, . - ' 950,000 .t ,1lu,VVV 57,000 . 60,000 80,000 85,000 100,000 545,000 630,000 ' 100,000 10,000 10,000 F~r I 400,000 460,000 500,000 400,000 340,000 400,000 400,000 425,000 TotaLs 2,592,000 3,743,500 ~ 3,757,000 ' ---------s- 1- 6

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The Tobacco Institute 1991 BUDGET COST CENTER Federal Relations Division No. 1201 Account #5801 - Legal Fees - General Covington & Burling - federal legislative matters Expert Witnesses for congres- sional hearings TOTAL 1990 1990 1991 BUDGET ESTIMATED BUDGET ($000) ($000) ($000) $ 450 $ 950 $ (9501 50 $ 500 $ 950 $ 950 FED.DRBA(DRBA) 10/30/90 2-5

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The Tobacco Institute 1991 BUDGET COST CENTER National Headquarters No. 1401 Account #4000 - Conferences & Meetings NATIONAL HEADQUARTERS National lobbyist meeting Field staff meeting h Special meetings wit lobbyists and staff for local legislative planning issue seminars, and lobbyists' participation in NCSL, CSG, and other meetings. State Activities Policy Committee meetings TOTAL 1990 1990 1991 BUDGET ESTIMATED BUDGET $ 280,000 $ 280,000 $ 280,000 35,000 40,000 40 ~ 30,000 25,000 25,000 2,000 2,000 2,000 $ 347,000 $ 347,000 $ 347,000 SAD.DRBA(DRBA) 10/30/90 3-5

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The Tobacco Institute 1991 BUDGET COST CENTER Federal Relations Division No. 1201 1990 1990 1991 BUDGET ESTIMATED BUDGET ($000) ($000) ($000) Account #4701 - Furniture,Fixtures & Equipment Personal computers $ 18 $ 15 $ 10 TOTAL $ 18 $ 15 $ 10 FED.DRBA(DRBA) 10/30/90 2-4

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THE TOBACCO INSTITUTE 1991 BUDGET `6T CENTER State Activities - Headquarters No. 1401 STAFFING SCHEDULE 11-Oct-90 Months of Employment Employee Name 1990 Budget 1990 Estimated 1991 Budget K. Malmgren Sr. V.P./Division Director 12 12 12 G. Minshew Sector Vice President 12 12 12 P. Donoho Sector Vice President 12 9 12 R. McAdam V.P./Init. & Spec. Projects 12 8 12 W. Cannell V.P./Legislative Support 12 12 12 W. Woodson Managing Dir. - Leg. Support 12 12 12 W. Orzechowski Director - Economic Issues 12 12 12 C. Sadowski Director - Leg. Information 12 12 12 M. Rita Senior Legislative Analyst 12 12 12 M. Boisse Senior Legislative Analyst 12 12 12 D. Avedon Senior Legislative Analyst 12 12 12 S. Mora Legislative Analyst 12 12 12 S. Carter Administrative A ant 12 12 12 Ir.. Walker Legislative Assistant 12 12 12 Carlow Secretary 12 12 12 ... Nyman Secretary 12 12 12 T. Mihas Secretary 12 12 12 Totals 204 197 204

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The Tobacco Institute 1991 BUDGET COST CENTER National Headquarters No. 1401 1990 1990 1991 BUDGET ESTIMATED BUDGET Account #5200 - Reproduction, Printing & Drafting NATIONAL HEADQUARTERS National TAN mobilizations Legislative Report Summary Stateline letterhead Special projects (awards, tobacco leaf pins, specialty advertising, etc.) Miscellaneous printing (e.g. T.I. stationery, slide repro- duction, letterheads, mobili- zations, etc.) Ford project mailing (TGIC) Reprints of TAN literature TOTAL $ 37,000 $ 30,000 $ 30,000 12,000 14,000 15,000 7,500 10,000 15,000 6,000 6,000 5,000 5,000 6,000 5,000 - 2,000 2,000 - $ 69,500 $ 68,000 $ 70,000 ~ 1 M C:) W 63 Y^ Y SAD.DRBA(DRBA) 10/30/90 3-8

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COST CENTER The Tobacco Institute 1991 BUDGET National Headquarters No. 1401 1990 1990 1991 BUDGET ESTIMATED BUDGET Account #6000 - Legislative Consultants (Continued) TEXAS Gaylord Armstrong $ 60,000 $ 60,000 $ 64,000 T.B.A. - 25,000 25,000 UTAH Jim Stewart (Jones, Waldo) 40,000 40,000 42,000 VERMONT Edward Miller 25,000 25,000 26,000 VIRGINIA Anthony Troy 40,000 40,000 43,000 WASHINGTON William Fritz 50,000 50,000 52,000 Stuart Halsan 20,000 20,000 25,000 WEST VIRGINIA Roger Price 33,000 33,000 35,000 WISCONSIN James Wimmer 60,000 65,000 65,000 Paul Sicula 20,000 23,000 25,000 WYOMING William Thomson 30,000 30,000 32,000 NATIONAL HEADQUARTERS Contingency 000 50 , TOTAL $3,086,000 $3,028,500 $3,182,000 SAD.DRBA(DRBA) 10/30/90 3-14

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The Tobacco Institute 1991 BUDGET COST CENTER National Headquarters 1990 BUDGET No. 1401 1990 1991 ESTIMATED BUDGET Account #6000 - Legislati ve Consultants (Continued) MICHIGAN Robert Crim $ 62,500 $ 62,500 $ 65,000 MINNESOTA Tom Kelm/Dave Krogs eng 100,000 100,000 100,000 Ron Jurich 20,000 20,000 20,000 MISSISSIPPI Ellis B. Bodron 31,000 31,000 32,000 MISSOURI John Britton 34,000 34,000 50,000 MONTANA Jerome Anderson 38,000 38,000 40,000 NEBRASKA Bill Peters 27,000 27,000 28,000 Walt Radcliffe 15,000 NEVADA T.B.A. 20,000 15,000 25,000 NEW HAMPSHIRE John Mitchell 32,500 32,500 32,500 T.B.A. - 15,000 NEW JERSEY Joseph Katz/Clark M artin 66,000 66,000 66,000 Louis Wilson 5,000 - NEW MEXICO Bob Barberousse 30,000 30,000 32,500 NEW YORK Jim Featherstonhaugh 70,000 72,000 Jeff Hill 62,500 64,500 Daniel Adams 50,000 50,000 52,000 Norm Adler 20,000 (O 22,000 1 Q 00 V SAD.DRBA(DRBA) ~ 10/30/90 3-12

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COST CENTER THE TOBACCO INSTITUTE 1991 BUDGET State Activities Division National Headquarters No. 1401 Authorized Positions 1990 - 17 Authorized Positions Requested 1991 - 17 ACCOUNT 1990 BUDGET 1990 ESTIMATED 1991 BUDGET 2800 Staff Compensation $1,023,000 $1,069,000 $1,168,000 3200 Employee Benefits 276,000 289,000 316,000 3900 Travel 249,000 261,000 258,000 4000 Conferences & Meetings 347,000 347,000 347,000 4700 Furniture, Fixtures & 20,000 18,200 20,000 5000 Equipment Office Supplies 1,000 2,000 1,000 5100 Postage & Delivery 75,000 56,000 60,000 5200 Reproduction, Printing & 69,500 68,000 70,000 5400 Drafting Other Office Expense 2,000 1,000 1,000 5500 Membership & Staff Training 18,300 16,500 18,000 5800 Legal Fees 632,000 958,500 757,000 6000 Legislative Consultants 3,086,000 3,028,500 3,182,000 6600 Business Taxes 50,000 25,000 68,000 6900 Employee Recruitment & 80,000 120,000 80,000 7200 Relocation Miscellaneous Expense 3,000 1,500 1,500 7300 Professional Fees 1,949,400 1,578,000 2,029,500 7400 Purchased Administrative 8,000 6,000 6,000 7500 Service Suprt Tob & Oth organizations 651,100 697,800 723,500 7700 Contributions 364,000 313,000 400,900 9100 Data Processing Allocation 390,000 390,000 390,000 Totals $9,294,300 $9,246,000 $9,897,400 SAD.ASR (TYP4) 10/30/90 3-3

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The Tobacco Institute 1991 BUDGET COST CENTER National Headquarters No. 1401 1990 1990 1991 BUDGET ESTIMATED BUDGET Account #6000 - Legislative Consultants (Continued) Wendell K. Kimura $ 24,000 $ 24,000 $ 27,000 Tax project contingency 25,000 - Norman Suzuki (tax project) 16,500 Wendell Kimura (tax roject) 8 500 p , IDAHO William Roden 31,000 31,000 33,000 ILLINOIS Tom Lyons 42,500 44,000 Ward Johnson 33,000 33,000 34,000 Bud Kelley 50,000 T.B.A. 45,000 INDIANA Terry Pehler 58,000 58,000 59,000 Thomas F. Fruechtenicht 32,000 32,000 34,000 IOWA Charles Wasker 40,000 40,000 44,000 KANSAS Alan Alderson 18,000 18,000 25,000 Bill Mitchell 23,000 23,000 23,000 KENTUCKY Judith Taylor - 20,000 30,000 Bill Scent 20,000 20,000 15,000 LOUISIANA Joe G. Wood 47,000 47,000 48,000 MAINE Severin Beliveau 67,000 67,000 69,000 MARYLAND Bruce Bereano 46,000 46,000 46,000 MASSACHUSETTS Billy Coyne 101,500 101,500 O 101,500 ~ 0 00 W 01 SAD.DRBA(DRBA) ~ 10/30/90 3-11 V

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The Tobacco Institute 1991 BUDGET COST CENTER National Headquarters No. 1401 1990 1990 1991 BUDGET ESTIMATED BUDGET Account #6000 - Legislative Consultants (Continued) T.B.A. $ 120,000 $ - $ David Dudley 40,000 - NORTH CAROLINA Roger W. Bone 55,000 55,000 55,000 NORTH DAKOTA Al Wolf 32,000 32,000 32,000 OHIO Rick Baird - 48,000 48,000 Pete O'Grady 43,000 43,000 45,000 John Kelley 20,000 20,000 21,000 T.B.A. 48,000 - - OKLAHOMA Ken Nance 42,000 42,000 42,000 Bill Reynolds 10,000 10,000 10,000 OREGON T.B.A. 40,000 Hank Crawford 40,000 40,000 PENNSYLVANIA Bill Cornell (Lipse n, Hamb.) 79,000 79,000 81,000 Ronald A. White 20,000 20,000 - RHODE ISLAND Dennis Roberts/Kell y Sheridan 31,000 31,000 32,500 T.B.A. 20,000 - 20,000 SOUTH CAROLINA Sterling Smith 42,000 42,000 45,000 Tom Smith 15,000 - - Dariel Ogburn - 4,500 - SOUTH DAKOTA Jeremiah Murphy 34,000 34,000 36,000 George Valentine 10,000 10,000 10,000 (0 TENNESSEE ~ Cleve Smith 40,000 40,000 ~ 45,000 W SAD.DRBA(DRBA) Ot 4h, 10/30/90 (0 3-13

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The Tobacco Institute 1991 BUDGET COST CENTER National Headquarters No. 1401 Account #6600 - Business Taxes NATIONAL HEADQUARTERS The Tobacco Institute, because it makes state and local political contributions, is a "political organization" as defined in section 527(f) of the Internal Revenue Code. Such political organizations are subject to a 34% tax on their taxable income. For The Institute, taxable income is defined as the lesser of net investment income or campaign contributions. The Institute's 1989 net investment income was reduced to $53,000 by losses on subletting Washington, D.C. office space. Because there will be no subletting losses in 1990, The Institute expects to have approximately $175,000 in 1990 net investment income. The income tax on this invest- ment income will be payable ir 1991. Sales and miscellaneous business taxes. TOTAL 1990 BUDGET 1990 ESTIMATED 1991 BUDGET $ 43,000 . $ 18,000 $ 60,000 7,000 7,000 8,000 $ 50,000 $ 25,000 $ 68,000 SAD.DRBA(DRBA) 10/30/90 3-15

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The Tobacco Institute 1991 BUDGET COST CENTER National Hea Account #6900 - Employee Recruitment & Relocation NATIONAL HEADQUARTERS Recruitment and/or replacement of headquarters & field staff as the result of unplanned terminations. Relocation and housing dif- ferential payments to relo- cated State Activities Divi- sion employees. TOTAL arters No. 1401 1990 BUDGET 1990 ESTIMATED 1991 BUDGET $ 50,000 $ 95,000 $ 50,000 30,000 25,000 30,000 $ 80,000 $ 120,000 $ 80,000 SAD.DRBA(DRBA) 10/30/90 3-16

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The Tobacco Institute 1991 BUDGET COST CENTER National Headcxuarters No. 1401 1990 1990 1991 BUDGET ESTIMATED BUDGET Account #7310 - Local Counsel/Consultants (Continued) °Self-Extinguishing" State/local "self-extin- quishing" issues contingency including consultants $ 10,000 $ - $ TOTAL $1,071,000 $ 741,900 $1,103,000 co ~ 00 ~cAp~ V Cn CD SAD.DRBA(DRBA) 10/30/90 3-23

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The Tobacco Institute 1991 BUDGET COST CENTER National Headquarters No. 1401 1990 1990 1991 BUDGET ESTIMATED BUDGET Account #7310 - Local Counsel/Consultants ALABAMA Local contingency $ 5,000 $ - $ 5, 0 Tuscaloosa - 2,500 Montgomery (C. Whitesell) - 2,000 ~ ALASKA T.B.A. 15,000 15,00~0 / ~--~ ---`_ ARIZONA AZ local (E. Arena) 18,000 22,000 22,000 Minorities (W. Hausey) - 1,600 - CALIFORNIA Counties/municipal contingency 75,000 - -`25, 00Q' Los Angeles sampling 17,000 20,000 000 Minorities (W. Hausey) - 18,000 18,000 Minorities (R. Aros) - 18,000 18,000 Moreno Valley (Weitzman Co.) - 10,000 San Diego (Katz & Assoc.) - 4,500 Air Resources Bd. (Sierra Research) 6,000 500 Sacramento/North (Jack Schreder & Associates) 43,000 - COLORADO Local contingency 5,000 CONNECTICUT Local contingency 15,000 - 5,000 DELAWARE Local contingency 5,000 - 5,000 FLORIDA Local contingency 5,000 5,000 5,000 GEORGIA Atlanta (Thomas & Dotson) 18,000 18,000 18,000 (0 HAWAII Honolulu (N. Suzuki) 12,500 12,500 ~ 12,500 Ou W (n 10/30/90 SAD.DRBA(DRBA) w -P 3-18

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THE TOBACCO INSTITUTE 1991 BUDGET State Activities Division Authorized Positions 1990 - 44 Authorized Positions Requested 1991 - 44 ACCOUNT 1990 BUDGET 1990 ESTIMATED 2800 Staff Compensation $2,502,000 $2,550,000 3200 Employee Benefits 675,000 689,000 3900 Travel 792,912 850,304 4000 Conferences & Meetings 353,000 349,500 4100 Field Automobiles Total 127,900 127,900 4300 Rent - Space Total 160,337 159,826 4600 Other Occupancy Expense 16,644 20,379 4700 Furniture, Fixtures & 21,800 20,000 4800 Equipment Books & Subscriptions 9,121 11,005 4900 Equip. Rep. & Maintenance 4,685 5,327 5000 Office Supplies 14,850 18,965 5100 Postage & Delivery 132,360 126,117 5200 Reproduction, Printing & 122,042 124,242 5300 Drafting Telephone & Telecopy 129,620 128,277 5400 Other Office Expense 28,940 27,839 5500 Membership & Staff Training 52,784 54,383 5800 Legal Fees 632,000 958,500 6000 Legislative Consultants 3,199,000 3,156,000 6600 Business Taxes 52,265 27,472 6900 Employee Recruitment & 80,000 120,000 7200 Relocation Miscellaneous Expense 13,500 13,750 7300 Professional Fees 1,994,400 1,618,200 7400 Purchased Administrative 50,340 43,470 7500 Service Suprt Tob & Oth Organizations 682,100 720,800 7700 Contributions 374,500 323,000 9100 Data Processing Allocation 390,000 390,000 Totals $12,612,100 $12,634,2,56 1991 BUDGET $2,720,000 735,000 842,669 349,500 135,900 157,342 17,375 21,800 10,704 5,150 16,840 126,510 123,755 141,687 27,901 61,255 757,000~ 3,299,000 70,475 80,000 14,445 2,072,500 43,050 766,500 410,900 390,000 $13,397,258 O s 0 00 W 01 W 0o SAD.SUM (TYPS) 3-2 11/03/90

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THE TOBACCO INSTITUTE 1991 BUDGET COST CENTER Federal Relations STAFFING SCHEDULE 11-Oct-90 Months of Employment Employee Name ~-R. Lewis Sr. V.P./Division Director ® __ V.P./Democratic Liai.son R. Whtte V.P./Republican Liaison Vacan£ gislative Representativev~ Legislative Representativek/ B. DeWitt b Legislative Representative P. McGovern~ Legislative Representative Vacant Director - Agricultura V/1 i ons Relat Director - Federal Programs Legislative/Regulatory Analyst I . Ruyl4'4) Administrative Assistant A. Ek Federal Programs Assistant D. Dunn(a Secretary D. Kirby Secretary S. Etemadi Secretary 2-3 No. 1201 1990 1990 1991 Budget Estimated Budget

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The Tobacco Institute 1991 BUDGET COST CENTER National Headquarters No. 1401 1990 1990 1991 BUDGET ESTIMATED BUDGET Account #5800 - Legal Fees NATIONAL HEADQUARTERS Covington & Burling - state and local legislative mattery.,-~' $ 550,000 $ 900,000 $ 700,000 Nielsen, Merksamer - general legal matters, initiative research, campaign reporting and filing 15,000 15,000 15,000 MA - accounting/legal support for lobbyists' registration and filing requirements (Bulger) ME - King VS. Bangor Federal Union case (S. Beliveau) Contingency 12,000 12,000 - 1,500 55,000 30,000 12,000 TOTAL $ 632,000 $ 958,500 $ 757,000 SAD.DRBA(DRBA) 10/30/90 3-9

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THE TOBACCO INSTITUTE 1991 BUDGET State Activities - Headquarters 1990 1990 1991 Budget Estimated Budget Account: 7300 - Professional Fees Consultants (7310) Legal counsel, lobbyists, and con- sulting firms retained to represent and/or consult with TI on legisla- tive and regulatory matters of interest to the industry at the municipal, county, and state levels. $1,071,000 $ 741,900 $1,103,000 Special Projects (7320) Professional fees for cost impact studies, opinion polls, start-up costs for initiatives and referenda campaigns, fiscal analyses, ventilation studies and other pro- jects in support of legislative programs. 802,900 800,600 880,000 Honoraria Program (7330) Honoraria payments in selected states. 65,500 27,500 31,500 Legislative Reporting (7340) Tracking and reporting of local, city, county and state legislation and regulation; includes computer connect time (StateNet). 10,000 8,000 15,000 $1,949,400 $1,578,000 $2,029,500 07 1 C:) 11/5/90 00 W ~ ti1 W 3-17

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The Tobacco Institute 1991 BUDGET COST CENTER National Headquarters No. 1401 1990 1990 1991 BUDGET ESTIMATED BUDGET Account #6000 - Legislative Consultants ALARAMA Calvin Whitesell $ 53,000 $ 56,000 $ 56,000 ALASKA Wes Coyner 44,000 44,000 45,000 Neal Cooper 6,000 8,000 9,000 ARIZONA Ernie Hoffman 56,000 56,000 58,000 ARKANSAS Paul Bosson 30,000 30,000 30,000 CALIFORNIA A-K Associates - 120,000 120,000 Grant Kenyon - 100,000 100,000 -Xvftac 200,000 - - COLORADO ' Frank Hays 46,000 46,000 50,000 CONNECTICUT Bourke Spellacy 92,500 92,500 92,500 DELAWARE Dave Poffenburger 23,000 23,000 26,000 DISTRICT OF COLUMBIA Jim Christian 42,000 42,000 44,000 FLORIDA Guy M. Spearman 48,000 48,000 48,000 Arthur R. Collins ( Private Partnership Public ) - 20,000 25,000 GEORGIA Jim Hammock 30,000 30,000 40,000 ~ 20,000 20,000 - ~ .1 HAWAII Norman Suzuki 40,000 40,000 O 00 43,000 W V1 SAD.DRBA( DRBA) ~ 10/30/90 3-10

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The Tobacco Institute 1991 Budget Sumnary by Account Federal Relations State Activities Public Affairs A6ninistrative Account Totals 1990 1990 1991 1990 1990 1991 1990 1990 1991 - 1990 1990 1991 1990 1990 1991 Acct Description BUDGET ESTIMATE BUDGET BUDGET ESTIMATE BUDGET BUDGET ESTIMATE BUDGET BUDGET ESTIMATE BUDGET BUDGET ESTIMATE BUDGET 2800 Staff Compensation t 1,064 S 888 S 1,126 S 2,502 $ 2,550 f 2,720 S 1,203 S 1,185 t 1,302 $ 1,279 $ 1,305 S 1,384 S 6,048 S 5,928 f 6,532 3200 Employee Benefits 288 240 304 675 689 735 325 320 352 346 353 375 1,634 1,602 1,766 3900 Travel 860 880 925 793 850 843 415 235 315 230 235 235 2,298 2,200 2,318 4000 Conferences & Mt9s 353 350 350 10 3 - 140 195 195 503 548 545 4100 Field Automobiles 128 128 136 - - - - - - 128 128 136 4300 Rent - Space Total 160 160 157 - - - 792 862 908 952 1,022 1,065 4600 Other Occupancy Expe 17 20 17 - 38 46 44 55 66 61 4700 Furn. Fix., & Equip 16 15 10 22 20 22 - 4 - 353 345 290 393 384 322 4800 Books & Subscription - 9 11 11 45 53 45 7 6 7 61 70 63 4900 Equip. Rep. & Mainte 5 5 5 1 2 2 173 170 187 179 177 194 5000 Office Supplies - 15 19 17 11 4 4 112 117 120 138 140 141 5100 Postage & Delivery 17 25 25 132 126 127 125 129 145 97 95 97 371 375 394 5200 Repro, Print & Draft 20 45 30 122 124 124 707 400 555 167 178 181 1,016 747 890 i' 5300 Telephone & Telecopy 130 128 142 - - - 182 180 190 312 308 332 5400 Other Office Expense 135 135 143 29 28 28 84 84 94 116 105 100 364 352 365 5500 Memb. & Staff Train 30 20 30 53 54 61 28 18 21 50 52 52 161 144 164 5800 Legal Fees 500 950 950 632 959 757 260 635 725 1,200 1,200 1,325 2,592 3,744 3,757 6000 Legisl Counsultants 2,000 2,000 2,100 3,199 3,156 3,299 - - - - - - 5,199 5,156 5,399 6200 Adv. Space & Promo T - - - 10 6 10 10 6 10 6600 Business Taxes 52 27 70 45 37 39 97 64 109 6900 Empl. Recruit & Reto 80 120 80 75 75 75 155 195 155 7200 Miscellaneous Exp. 14 14 14 - - - 14 14 14 7300 Professional Fees 260 200 100 1,994 1,618 2,073 7,034 7,515 7,169 80 76 76 9,368 9,409 9,418 7400 Purchased Admin Svcs 10 35 10 50 43 43 26 21 21 23 5 13. 109 104 87 7500 Suprt Tob & 0th Orga 682 721 767 4,713 4,383 4,419 - - - 5,395 5,104 5,186 7700 Contributions 10 10 10 375 323 411 - - 385 333 421 8000 Computer Services 35 35 37 65 65 65 496 508 522 596 608 624 9100 DP Allocation 390 390 390 390 390 390 390 390 390 < 1,170>< 1,170>< 1,170> - - - 9300 TITL Adnin Alloc < 35>< 35>< 40> < 35>< 35>c 40> TOTALS $ 5,637 $ 5,868 S 6,190 $12,613 $12,633 $13,399 $15,452 $15,452 $15,634 $ 4,796 $ 4,940 $ 5,205 $38,498 $38,893 $40,428 ISR.SUM1(TYP6) 11/07/90 GZSSSOG6

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The Tobacco Institute 1991 BUDGET COST CENTER National Headquarters No. 1401 1990 1990 1991 BUDGET ESTIMATED BUDGET Account #7320 - Special Projects (Continued) Peoria tax (M.R.G.) $ 10,000 $ - $ INDIANA ~--~ 0 Local contingency 5,000 0 10,000 C~ 0 -" Vending association support - ~ZfOo 500 IATCD connection support - 1,000 - IOWA Tax Project (D.C.S. Mkt.) 12,000 - 12,000 Legislative reception - 1,300 1,000 KANSAS Legislative Reception 2,500 2,500 2,500 IAQ study - state capitol 5,000 - ® KENTUCKY Legislative function 1,000 1,500 1,500 KY Municipal League support 700 700 700 Labor News ad - 600 600 LOUISIANA Legislative Function 3,500 3,500 4,500 Support for Greenhouse 2,500 3,000 3,000 Wholesaler Assoc. convention support - 1,000 1,000 LA Grocers' Assoc support 500 - - MAINE ME Grocers' Assoc. support 5,000 5,000 5,000 ME Chamber project - 1,500 1,500 ME Retailer project - 1,000 1,000 ME Hospitality project - 1,000 1,000 MARYLAND O -~ Legislative Reception 3,000 3,000 O 3,000 Testimonial Functions 2,000 2,000 W 2,000 Montgomery Co. S/R (Madison (P Grou ) - 57 000 O) - p MD Restaurant Assoc project 17,000 , 8,700 N - SAD.DRBA(DRBA) 10/30/90 3-26

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The Tobacco Institute 1991 BUDGET COST CENTER National Headquarters No. 1401 1990 1990 1991 BUDGET ESTIMATED BUDGET Account #7310 - Local Counsel/Consultants (Cont inued) Local co ntingency $ 20,000 $ 10,000 OREGON Local co ntingency 10,000 PENNSYLVANIA Philadel phia (0. Kernodle) - 16,000 Pittsbur gh (R. Cohen) 20,000 20,000 Philadel phia (R. White) 20,000 20,000 Tax proj ect contingency 10,000 8,000 Local co ntingency 20,000 10,000 PATCDA c onvention support 1,000 1,000 PA Rest. Assoc. support 500 500 PA Chamb er of Comm. support 500 500 Western PA Tobacco Table 500 - RHODE ISLAND Local co ntingency 5,000 5,000 State sa (Phoenix mpling testimony Mkt.) - 1,000 SOUTH CAROLINA Greenvil le S/R (Carter, Smith) - 2,300 Local co ntingency 8,000 TENNESSEE Local co ntingency 10,000 10,000 TEXAS TX local ities (K. Benson) 40,000 40,000 Local Co ntingency 15,000 15,000 VERMONT Local co ntingency 5,000 - VIRGINIA Tidewate r area (L. Zambardi) 20,000 22,000 Counties /Municipal contingency 10,000 - WASHINGTON Local co ntingency 10,000 (D 8,000 1 0 ~ w ~ 24,000 23,000 10,000 10,000 1,000 500 500 5,000 40,000 15- 1 00 20,000 10,000 10,000 SAD.DRBA(DRBA) ~ 10/30/90 3-21 V

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The Tobacco Institute 1991 BUDGET COST CENTER National Headquarters No. 1401 1990 1990 1991 BUDGET ESTIMATED BUDGET Account #7310 - Local Counsel/Consultants (Continued) ILLINOIS Chicago/Cook County (T. Lyons) $ 40,000 $ 42,500 $ Local contingency 30,000 20,000 000 INDIANA Local contingency 15,000 - ' 15,000 KANSAS Local Contingency 5,000 2,000 5,000 Lenexa (K. Benson) 4,000 LOUISIANA New Orleans (Haras, Inc.) 25,000 25,000 25,000 MAINE Local contingency 5,000 - 5,000 MARYLAND Maryland city/county contingency 15,000 25,000 Montgomery Co. (B. Bereano) 35,000 Montgomery Co. (V. Crawford) 4,700 MASSACHUSETTS . Boston (B. Coyne, Jr.) 30,000 30,000 30,000 ities MA 000 24 000 24 24 000 c , , , Local contingency 10,000 - 10;600~ MICHIGAN Local contingency 10,000 10,000 10,000. MINNESOTA Hennepin Co./Minneapolis contingency (S/R & vending) 20,000 20,000 20,000 Ramsey Co./St. Paul contingency (S/R & vending) 20,000 20,000 20,00Q__' , - Local contingency Minneapolis vending (R. Randle) - 3,000 _"_T ,o 0 0 ~ 1 SAD.DRBA(DRBA) Q 00 CA3 0 Cn 10/30/90 07 3-19

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COST CENTER The Tobacco Institute 1991 BUDGET National Headquarters 1990 BUDGET Account #7310 - Local Counsel/Consultants (Continued) WISCONSIN Local contingency $ 15,000 WYOMING Local contingency 2,000 NATIONAL HEADQUARTERS Taxation State/local taxation issues contingency including economic consultants 100,000 Special tax/economic projects 20,000 Regional grassroots consultant (Region I test program) - Sampling/Vending/Advertising State/local sampling/vending /advertising issues contin- gency including consultants 10,000 Smoking Restrictions State/local S/R issues including consultants Martin Haley Companies Less 50% allocation to Federal Relations Div. < 20,000 100,000 50,000> No. 1401 1990 ESTIMATED 1991 BUDGET ----. $ - $ 10,000 - '2,000 - 100,000 - 30,000 - 50,000 - f 40,000 - _!~X 30,000 SAD.DRBA(DRBA) 10/30/90 3-22

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The Tobacco Institute 1991 BUDGET COST CENTER National Headquarters 1990 BUDGET Account #7310 - Local Counsel/Consultants (Continued) MISSOURI St. Louis/St. Louis County (Datra Herzog & Co.) $ Local contingency Local issues (K. Benson) NEW HAMPSHIRE Local contingency 5,000 NEW JERSEY Local contingency NEW MEXICO Santa Fe S/R (B. Barberousse) - Albuquerque S/R (B. Barberousse) - Albuquerque advertising (B. Barberousse) - Local contingency 5,000 NEW YORK NYC (N. Adler) - Buffalo/Erie County (J. P. Griffin) - Westchester County (A. Vitagliano) - Local contingency 40,000 New York City Contingency 50,000 NORTH CAROLINA Local contingency' Durham (Ken Spaulding) New Hanover Co. (Burney) Raleigh/Wake Co. (R. Bone/J. Ramquist) Greensboro (Isaacson) OHIO 10,000 Cincinnati (J. Kelley) 20,000 SAD.DRBA(DRBA) No. 1401 1990 ESTIMATED 1991 BUDGET $ 18,000 $ 1?~AA.Q 10,0 <. 8,500 . 10,000 7,000 7,000 5,000 5,000 40,000 40,000 25,000 25,000 22,000 22,000_ - ~15,QA0 2 0, O p¢._.~ 6,000 '16"000 15,000 - 4,000 2,300 20,000 (0 21,000 ~ 0 OJ W V1 O>1 10/30/90 3-20

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The Tobacco Institute 1991 BUDGET COST CENTER National Headquarters No. 1401 Account #7320 - Special Projects ALABAMA Legislative Function ALASKA State/local contingency Anchorage tax initiative (Evans/Kraft) State/local tax projects ARIZONA Hispanic coalition projects Legislative reception State/local contingency Minorities (NAACP) Minorities (SER) Minorities (Chicanos for La Causa) ARKANSAS Legislative Function CALIFORNIA Prop 99 - short term Prop 99 - long term State/local contingency CA restaurant project Los Angeles sampling (Ogilvy & Mather) Hispanic coalition projects CA Chamber of Commerce CA Coin Machine Assoc. CA Hispanic Chamber of Comm. Legislative/Cong. dinner CATCD - vending project San Diego S/R (R. Ottilie) Prop 99 - coalition program COLORADO Hispanic coalition projects Legislative Reception SAD.DRBA(DRBA) 1990 BUDGET 1990 ESTIMATED 1991 BUDGET $ 3,000 $ 1,000 $ 3,000 5,000 - /5,000 - 8,600 - 5,000 8,000 2,000 2,000 2,000 5,000 - 2,000 4,300 1,~00 9,500 1,000 500 500 2,500 2,500 3,000 150,000 80,000 150,000 50,000 20,000 50,000 75,000 50,000 25,000 25,000 30,000 20,000' 15,000 5,000 5,000 4,000 4,000 4,000 3,000 3,000 3,000 2,000 2,000 30,000 - 1,200 - 36,000 - - 10,000 1,200 1,200 ~ 1,200 0 0, W Cn 0) 0 10/30/90 3-24

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The Tobacco Institute 1991 BUDGET COST CENTER National Headquarters 1990 BUDGET No. 1401 1990 1991 ESTIMATED BUDGET . Account #7320 - Special Projects (Continued) CONNECTICUT CT Grocers' Assoc. $ 2,500 $ - $ 2,500 CT retail project - - 1,500 CT hospitality project - - 1,000 DELAWARE Legislative function 2,000 2,000 DISTRICT OF COLUMBIA Kennedy-King Dinner 500 500 FLORIDA ~ -°-~ " Tax project contingency 15,000 - ,t+ -° ~ - Minority caucus functions - 2 , 000 ~- -~ -, 0 00 Legislative reception 1,000 1,000 1,000 ALEC reception 1,500 500 500 Tax project poll (Kitchens & Assoc.) - 18,500 Tax project (special office) - 12,000 GEORGIA Local contingency 3,000 Legislative functions 2,500 2,500 Legislative Function 2,000 2,000 2,000 Jefferson - Jackson Day Dinner 1,000 1,000 HAWAII Local contingency 6,000 15,000 State tax project - phone bank (D.C.S.) 6,000 IDAHO Tax/IAQ issues 4,000 4,000 ILLINOIS State tax project 10,000 15,000 10,000 Legislative Function 1,500 1,500 1,500 IL Chamber of Commerce support 1,500 1,500 1,500 Retailer project - - ~p 1,500 O O W 01 SAD.DRBA(DRBA) ~ 10/30/90 3-25

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The Tobacco Institute 1991 BUDGET COST CENTER Federal Relations Division No. 1201 1990 1990 1991 BUDGET ESTIMATED BUDGET ($000) ($000) ($000) Account #6001 - Legislative Consultants c~1~ p.` U Griff~ohn$bn ~ASSOCiatLs Black, anafort, tone & Kelly Webster & Sheffield -. 9 240 150 Mike Forscey (Wunder, Ryan, ~ Cannon & Thelen) 120 A-K Associates V W-+~ Charles O. Whitley \I_ Paul, Hastings, et al Willard & Auge, Inc. V, 9( ite Consulting Group r ames N. Juliana Associates , ari & Cook ley ~.gmpas~es Allowance for additional legislative consultants and fee increases TOTAL FED.DRBA(DRBA) 90 n ~ 50 75 200 45 400 $ 2,000 245 240 240-/ 40./1 220 0ftWPZ--- 220 200 200 485~,~' 150 140 140 130 130 80 801~'c 90 90 50 50 118 t 555 $ 2,000 $ 2,100 10/30/90 2-6

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Tobacco Documents Online

State and Local Strategies of the Tobacco Industry