Proposed Budget -- 1991

Tobacco Institute

Proposed Budget -- 1991

Date: 1991
Length: 225 pages
TIMN0390579-TIMN0390803
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Type: BUDGET / FINANCIAL
Characteristic: CONFIDENTIAL; MARGINALIA
Named Organization: Epa; Tobacco Institute; OSHA; Lmc; Tobacco Industry Labor Management Comm; National Chamber Foundation; Ncf; Hbi; Powell Adams; Fleishman Hillard; TI; Covington & Burling; Tbd; Information Center & Production Servic; Hill & Knowlton; Tobacco News Today; Tnt; Lan; Oclc; Capcon; Special Libraries Association; Ast; Ibm; American Agricultural Movement; League Rural Voters; Aam; Tilmc; Coalition Against Regressive Taxation; Congress; National Tobacco Council; National Association Tobacco Distribut; James Savarese & Assoc; Congress Ca Seniors; Fl Council Sr Cit; Senior Citizen Ed & Researh Assn Ny; Labor Council Latin American Advanceme; Fl Tax Reform Coalition; Il Ctj; Nj Citizen Action; Ia Citizen Action Network; MN Ctj; WA Fare Share; TX Alliance for Human Needs; Wi Action Coalition; Il Rainbow Coalition; National Consumers League; Consumer Public Safety Commission; Tsg; Cpsc; Congressional Fire Services Institute; International Association Fire Chiefs; International Society Fire Service Ins; National Association State Fire Marsha; National Volunteer Fire Council; International Association Black Profes; National Fire Protection Association; Burn Concerns; Pan Educational Institute; Tridata; Sparber & Associates; Carolyn Perroni Communications; Zoeller & Associates; University Ga; Tri Data; Zoeller & Assoc; Pan Education Institute; Occupational Safety & Health Administr; Tobacco Action Network; Natd; Tobacco Merchants Assn; Retail Tobacco Dealers Assn; Tobacco Associates; Cigar Association; Smokeless Tobacco Council; National Assn Wholesale Grocers; National Grocers Assn; Food Marketing Institute; National Assn Wholesale Distributors; National Assn Convenience Stores; General Merchandising Distributors Cou; Chain Drug Assn; Afl Cio; Willard & Auge; Jarvis; Coalition Labor Union Women; A Philp Randolph Institute; Labor Council for Latin American Advan; American Medical Association; Aba Journal; Legal Times; National Academy Sciences; Environmental Protection Agency; Department Transportation; Ashrae; Healthy Buildings International; Chamber Commerce; Cluw; Lclaa; Apri; National Energy Management Institute; Safe Workplace Air Coalition; University Pittsburgh; US Department Health & Human Services; American Economic Association; Southern Economic Association; Western Economic Association; Atlantic Economic Association; American Legislative Exchange Council; National Conference State Legislators; Council State Governments; National Governors Association; Production Services
Site: Cb1334, TI Storage Box 5358
Author (Organization): Tobacco Institute
Box: 133
Request: Mn1-98; Mn1-100; Mn1-106
Litigation: Minnesota AG
Named Person: Kennedy; Waxman; Tollison, B.; Wagner, D.; Holcomb; Weeks; Peterson; Davidson, J.A.; Powers, C.; Stuntz, S.; Dawson, B.; Gleason, M.; Merryman, W.; Lauria, T.; Nork, S.; Panzer, F.; Rinker, M.; Thomas; Hrycaj; Merkle, M.; Ransome, S.; Fernicola, K.; Cannell, A.; Booth, M.; Smith, J.; Dowden, J.; Mcnelis, V.; Villanueva, M.; Wright, J.; Schnicke, U.; Burgess, K.; Collins, M.; Cronan, S.; Dawson; Booth; Dowden; Members Congress; Forscey, M.¹; Moakley, J.; Boucher, R.; Gleason; Fernicola; Lewis; Whitley; Vinovich; White; Dewitt; Mcgovern; Schaenman, P.; Pendergist, B.; Sparber, P.²; Peronni, C.³; Zoeller, L.⁴; Michard, D.⁵; Kimberly, J.⁶; Eisner, H.⁷; Brennan, T.W.⁸; Ackerman, J.⁹; Perroni, C.¹⁰; Whitehead, A.K.¹¹; Mccormack, E.H.¹²; Mccormack, E.H.¹³; Robinson, K.¹⁴; Robinson, K.¹⁵; Watts, J.M.¹⁶; Watts, J.M.¹⁷; Keefe, J.¹⁸; Keefe, J.¹⁹; Lemmon, C.²⁰; Lemmon, C.²¹; Pottmyer, A.²²; Pottmyer, A.²³; Kernus, S.²⁴; Ettling, B.V.²⁵; Ettling, B.V.²⁶; Holmes, T.²⁷; Holmes, T.²⁸; Smith, R.B.²⁹; Carlson, G.³⁰; Carlson, G.³¹; Jennings, J.³²; Lamboy, J.³³; Lamboy, J.³⁴; Oberg, F.E.³⁵; Campbell, N.³⁶; Campbell, N.³⁷; Synar, M.; Luken, T.; Kennedy, T.; Bates, J.; Waxman, H.; Merkle; Fox, J.; Vaughn, D.; Rinker; Ransome; Woodson; Avedon; Lieberman; Mcgill; Paul; Hastings; Cannell; Collins
Date Loaded: 05 Jun 1998
UCSF Legacy ID: gmj62f00

Annotations

1. Forscey, M. Named Person

Affiliation:
Wunder Ryan

2. Sparber, P. Named Person

Affiliation:
Sparber & Associates

3. Peronni, C. Named Person

Affiliation:
Carolyn Perroni Communications

4. Zoeller, L. Named Person

Affiliation:
Zoeller & Associates

5. Michard, D. Named Person

Affiliation:
Fire Chief Magazine

6. Kimberly, J. Named Person

Affiliation:
Firehouse Magazine

7. Eisner, H. Named Person

Affiliation:
Firehouse Magazine

8. Brennan, T.W. Named Person

Affiliation:
Fire Engineering

9. Ackerman, J. Named Person

Affiliation:
American Fire Journal

10. Perroni, C. Named Person

Affiliation:
National Volunteer Fire Council Dispat

11. Whitehead, A.K. Named Person

Affiliation:
International Association Firefighters

12. Mccormack, E.H. Named Person

Affiliation:
Voice
Affiliation:
International Society Fire Service Ins

13. Mccormack, E.H. Named Person

Affiliation:
Voice
Affiliation:
International Society Fire Service Ins

14. Robinson, K. Named Person

Affiliation:
Fire Journal
Affiliation:
National Fire Protection Association

15. Robinson, K. Named Person

Affiliation:
Fire Journal
Affiliation:
National Fire Protection Association

16. Watts, J.M. Named Person

Affiliation:
Fire Technology
Affiliation:
National Fire Protection Association

17. Watts, J.M. Named Person

Affiliation:
Fire Technology
Affiliation:
National Fire Protection Association

18. Keefe, J. Named Person

Affiliation:
Command Fire
Affiliation:
National Fire Protection Association

19. Keefe, J. Named Person

Affiliation:
Command Fire
Affiliation:
National Fire Protection Association

20. Lemmon, C. Named Person

Affiliation:
Iafc on Scene
Affiliation:
International Association Fire Chiefs

21. Lemmon, C. Named Person

Affiliation:
Iafc on Scene
Affiliation:
International Association Fire Chiefs

22. Pottmyer, A. Named Person

Affiliation:
International Connections
Affiliation:
International Association Fire Chiefs

23. Pottmyer, A. Named Person

Affiliation:
International Connections
Affiliation:
International Association Fire Chiefs

24. Kernus, S. Named Person

Affiliation:
Fire Control Digest

25. Ettling, B.V. Named Person

Affiliation:
Fire & Arson Investigator
Affiliation:
International Association Arson Invest

26. Ettling, B.V. Named Person

Affiliation:
Fire & Arson Investigator
Affiliation:
International Association Arson Invest

27. Holmes, T. Named Person

Affiliation:
Iabpff Newsletter
Affiliation:
Iabpff

28. Holmes, T. Named Person

Affiliation:
Iabpff Newsletter
Affiliation:
Iabpff

29. Smith, R.B. Named Person

Affiliation:
Fire Marshals Association North Americ

30. Carlson, G. Named Person

Affiliation:
Ifsta Newsletter
Affiliation:
International Fire Service Training as

31. Carlson, G. Named Person

Affiliation:
Ifsta Newsletter
Affiliation:
International Fire Service Training as

32. Jennings, J. Named Person

Affiliation:
Ca State Fire Marshals Newsletter

33. Lamboy, J. Named Person

Affiliation:
Size Up
Affiliation:
Ny State Association Fire Chiefs

34. Lamboy, J. Named Person

Affiliation:
Size Up
Affiliation:
Ny State Association Fire Chiefs

35. Oberg, F.E. Named Person

Affiliation:
MN Fire Chief Magazine

36. Campbell, N. Named Person

Affiliation:
Oregon Fire Service Gated Wye
Affiliation:
Oregon State Fire Marshals Office

37. Campbell, N. Named Person

Affiliation:
Oregon Fire Service Gated Wye
Affiliation:
Oregon State Fire Marshals Office

Document Images

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C O N F I D E N T I A L ~IMN 3905 7 9

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CONFII)ENTIALe MINNESOTA TOBACCO LITIGATION THE TOBACCO INSTITUTE PUBLIC AFFAIRS DIVISION PROPOSED BUDGET -- 1991 The following documents represent the budget for the activities proposed by the Public Affairs Division in its 1991 operating plan. This budget supports an overall program that builds on the successes we have enjoyed in the past, and that anticipates our key challenges for the coming year. These include: Continuing to respond aggressively to ETS activities at the federal, state and local level, through the identification and maintenance of a strong team of academic and consulting scientists and indoor air quality experts. Aggressively marketing our workplace smoking corporate assistance program, to help employers understand their obligations in light of the EPA risk assessment. Identification and support of fair tax coalitions at the state level, to assist us in carrying the regressivity message that we used so successfully at the federal level in 1990. At the federal level, preparing for the next tax battle: to respond to efforts to earmark cigarette excises to pay for specific government programs. Development and maintenance of allies and coalitions, particularly in the labor community, principally on tax and workplace issues. In 1991, as in the past, more than 75 percent of the Division's nonadministrative expenses will go toward direct support of The Institute's legislative and regulatory agenda. This year, more than two-thirds of our legislative support activities were devoted to federal issues: excise taxes, ETS issues at EPA and OSHA, Kennedy and Waxman advertising bills. For 1991, many of these battles will shift to the state level; we anticipate a corresponding shift in the application of our legislative support. Our budget recommendations for next year reflect that change. TIMN 390580

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t Notably absent from the 1991 budget request is the $6.649 million F.E.T. Direct Mail Project, which was authorized by the Executive Committee in January, for 1990 only. The net effect for 1991 is a 1 Percent increase over 1990 proiected sDending for the Divisionls onqoing Drograms. Highlights of the budget include: General Administration The 1991 budget request for General Administrative expenses (at Tab 1) is $2.294 million, or a 9 percent increase over 1990 actual. This increase is due to an increase in salaries and benefits, which were below budget in 1990 due to staff vacancies. Scientific Affairs The 1991 budget request for Scientific Affairs (at Tab 2) is $2.1 million, or a 34 percent decrease from 1990 actual. Academic scientist activity and legal fees incurred in responding to the EPA risk assessment pushed this cost center substantially over budget in 1990. However, the 1991 budget request also represents a 75 percent increase ($900,000) over the 1990 budget authorization for this cost center. This is due to: Legal fees. Staff budgeted $100,000 for legal fees in this area for 1990; we estimate that $545,000 will be spent. In 1991, we anticipate that legal fees will increase to $630,000. That accounts for more than two- thirds of the increase in our 1991 budget request. Anticipation that response to OSHA, as well as other federal and state regulatory issues related to ETS will require a high level of academic scientist activity, at least through the first half of 1991. Media Relations Staff vacancies and delays in the launch of the industry's youth initiatives accounted for substantial cost savings in the 1990 budget. The 1991 budget request of $737,000 (at Tab 3) is a 40 percent increase over 1990 actual, although only a 2 percent increase over 1990 authorized. The increase for 1991 is reflected in: CONFIDENTIAL: TIMN 390581 MINNESOTA TOBACCO LITIGATION

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A request from State Activities that funds ($125,000) be budgeted for local PR counsel to be retained to assist on specific industry issues in California, New England, and possibly North Carolina. This represents more than 65 percent of the increase requested. Similarly, State Activities has asked that media personnel assist them in developing a media component for key state and local hearings, following our successful federal hearing readiness program. We anticipate that this new on-site involvement will increase travel and related expenses incurred in promoting industry experts and allies. Information Center The 1991 budget request of $125,000 (at Tab 4) is a 5 percent decrease from 1990 actual. It represents a less than 1 percent increase over 1990 authorized, and is due to higher costs for equipment repair and maintenance. Excise Taxes The 1991 budget request of $2.004 million (at Tab 5) is a 9 percent decrease from 1990 actual. This decrease is due to the phasing down of the Consumer Tax Alliance project. Polling and other media activity were assigned to this cost center. However, the 1991 request also represents an increase of 27 percent over 1990 authorized. This increase can be attributed to: Support through the industry's Labor Management Committee of fair tax coalitions in up to a dozen high- priority tax states identified by State Activities. Many of these coalitions were identified and developed during our intensive year-long federal excise tax battle. However, most are now in a position to take an active role in state tax battles by identifying and promoting progressive alternatives to regressive excises proposed to fund state government budget deficits. Plans to replicate the Labor Management Committee's successful IAQ briefing program for labor, through promotion of a new tax fairness video and accompanying materials (developed in 1990). Our program calls for in-person briefings for national, state and local union meetings by LMC staff. CONFIDENTIAL: MINNESOTA TOBACCO LITIGATION TIMN 390582

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i Promotion of a new academic book on earmarking, through media tours to be conducted by the book's authors, and book reviews by other members of the economic consulting group. . Support to a senior citizens' group and to a consumer group_for development of materials identifying progressive funding sources for long term care and for health care. These would establish alternatives to regressive excise taxes. . National and state-specific economic studies of the impact of cigarette price differentials on bootlegging. Funding for this work is included in the Public Affairs budget at State Activities' request. In addition, we propose to continue the successful economist op- ed program, with a greater emphasis on state tax issues. We also will continue our support of long-time tax allies from the business and the labor/liberal sector. Fire Safety .The 1991 budget request of $835,000 (at Tab 6) is a 4 percent increase over 1990 actual, but a 4 percent decrease from 1990 authorized. Spending was cut back in this cost center in 1990 to meet cost overruns in the excise tax and ETS areas. The 1991 budget request supports a program plan that proposes.to maintain and strengthen existing relationships with the fire community and with other organizations that play key roles on this issue. In that regard, emphasis is placed on: Promotion of the latest Tri-Data research, offering case studies of successful fire department efforts at fire safety education. Many of these case studies feature TI-supported programs and materials. Development and promotion of a video featuring the TI- supported programs, with endorsements from representatives in the fire service. This video will be incorporated into the presentations made by TI staff at state and regional fire service meetings. The budget calls for funding of fire programs and grants at 1990 actual levels, which are slightly below those of previous years. General Coalitions The 1991 budget request of $2.397 million (at Tab 7) is a 12 percent increase over 1990 actual. Most of the continuing expenses in this cost center are directed to support of the CONFIDENTIALe TIMN 390583 MINNESOTA TOBACCO LITIGATION

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Tobacco Industry Labor Management Committee, including its consultants and those coalitions whose support on our issues cut across issue boundaries. The increase in the 1991 budget request is attributable to: State Activities requests that the Labor Management Committee identify and retain labor counsel in three additional states in 1991. Those states are Pennsylvania, Indiana and New Jersey. This would bring to 17 the number of states in which the LMC is represented by counsel. State Activities requests that the Division identify and retain local minority counsel to assist in developing personal relationships at the local level with Hispanic and other minority leaders in Texas and Florida. Advertising The 1991 budget request of $425,000 (at Tab 8) is a 26 percent decrease from 1990 actual. With the focus of activity shifting to promotion of the industry's new youth initiatives, the 1991 advertising budget proposes minimal funding of: Industry publications, chiefly the constitutional analyses of key Congressional advertising restriction proposals. Witnesses for federal and state advertising hearings, as well as counsel to assist in the development and preparation of testimony for allies and coalitions. Support to the Freedom to Advertise Coalition, chiefly for development of materials specific to proposals to restrict tobacco advertising. . General operational support to the ACLU and the Washington Legal Foundation. we propose eliminating funds to support CASE and other industry retail groups, as well as coalitions on the trade issue. Public smokinc Because much of the activity and many of the programs proposed in the 1990 plan were deferred in an effort to meet cost overruns from the EPA risk assessment, the 1991 budget request of $4.295 million (at Tab 9) is a 22 percent increase over 1990 actual. However, it is a 17 percent decrease from the 1990 authorized budget. CONFIDENTIAL: MINNESOTA TOBACCO LITIGATION TIMN 390584

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The focus for 1991 is expected to include: . Retention of a strong consulting scientist team, including individuals with expertise on ETS as well as indoor air quality issues. Although testimony costs for these individuals was down significantly in 1990, that is expected to change in 1991 as states and localities react to the EPA and OSHA actions at the federal level. With increased media opportunities in concert with legislative testimony, we recommend a decrease in stand-alone media tours. In past years we have budgeted for 36 tours a year, or 3 per month. For 1991, we propose 24 tours annually, or 1 ETS tour and 1 IAQ tour a month. Development through the Labor Management Committee of materials for and deployment of IAQ experts in most key states and regions. These experts represent the unionized sheet metal industry, and are prepared to participate in legislative briefings and hearings, as well as media and other promotional activity. Support through the Labor Management Committee of indoor air coalition activity at the federal and regional levels, including workshops, press events and other media activity. The same level of support to the LMC's indoor air briefings for state and local unions. Revisits will be needed to bring allies up to speed on the federal EPA and OSHA situations. Completion of a comprehensive ETS briefing book for the media, and development of materials, including economist op-eds, on science for profit and bias in reporting of,science. On the corporate workplace program, continued aggressive outreach to businesses. Also, a refocus of our successful legal "breakfast briefings" program to include employer obligations in light of the EPA risk assessment. New programs to address efforts by group health insurers to discriminate against smokers; to identify scientific biases in the awarding of government research grants on ETS issues; and to examine from a libertarian view extreme anti-smoker responses to annoyances. CONFIDENTIAL: MINNESOTA TOBACCO LITIGATION TIMN 390585

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a social co ts A substantial portion of the 1990 authorized budget for social costs was instead devoted to the federal excise tax issue. The 1991 budget request of $422,000 (at Tab 10) reflects a 58 percent increase over 1990 actual. It is, however, a 40 percent decrease from 1990 authorized. For 1991, the social costs program proposes to promote the research that has already been developed. Thus funding for additional research has been deleted from this request. Also dropped is a proposal for a symposium specifically on the social costs of smoking. Instead, we propose to work with the National Chamber Foundation to develop a symposium on the broader issues, with smoking included. Key elements of the 1991 program and budget include: Use of social cost economists to respond to the 1990 HHS "social cost" document, as well as earlier documents produced by the OTA that are being referenced by state health departments in generating state- specific data. Economists will respond via articles, op-eds, testimony and media tour, to these state- specific claims. The revision, update and expansion of "Smoking and the State," the social cost treatise that sold out its initial printing in 1990. Promotion will be via media tour, book reviews and op-eds. Full-year support to the National Chamber Foundation's social cost efforts, including publication of a journal, stand-alone articles and monographs, testimony and promotion of NCF activities. CONFIDENTIAL: MINNESOTA TOBACCO LITIGATION TIMN 390586

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Media Tour Activity Media tours by industry consultants are described in each issue plan, and budgeted in the appropriate issue cost center. Budgets for the media tours include time and travel for the expert consultant, and for the public relations agency that has been assigned to promote the expert. Expert consultants charge TI on a time and expenses basis. Public relations counsel have been awarded media tour contracts following submission of competitive bids. Their fees include all time and travel expenses, and average $6,500 per two-city tour. Proposed media tour activity for 1991 includes: Excise Taxes -- (At Tab 5) Five economist media tours in late spring/early summer to promote the newly published academic book on earmarking. Economists Bob Tollison and Dick Wagner would conduct the tours. Agency to be determined. Public Smokina -- (At Tab 9) "B" team scientists (Holcomb, Weeks and Peterson) and IAQ experts from HBI would between them account for 24 media tours throughout the course of the year, with most occurring in advance of legislative activity. For 1991 the focus will be on the EPA risk assessment. Scientist media tours are promoted by Powell, Adams & Rinehart. HBI media tours are promoted by Fleishman-Hillard. Social Costs -- (At Tab 10) Six social cost expert media tours are budgeted to promote the revised version of "Smoking and the State," and to respond in the media to state-specific social cost calculations. The book tours would occur late summer/early fall, with the agency doing the promotion still to be determined. The tours responding to social cost calculations by state health departments are expected in the first half of the year. These will be promoted in-house by TI media personnel. Youth Initiatives -- (At Tab 11) Jolly Ann Davidson, the national spokesman for the Responsible Living program (who would be representing the consortium of organizations and individuals who cosponsor the program) will conduct up to 18 media tours throughout 1991. Her appearances will be coordinated with federal and state legislative activity. Tours will be promoted by Fleishman-Hillard. CONFIDENTIAL: MINNESOTA TOBACCO LITIGATION TIMN 390587

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CONFIDENTIAL: MINNESOTA TOBACCO LITIGATION THE TOBACCO INSTITUTE 1991 BUDGET Public Affairs Division 1990 1991 Estimated Proposed Authorized % Change Budget ($000) Expenditures ($000) Authorized Positions Budget ($000) Positions 90 Requested 91 Est vs Budget 1301 General Administration $2,189 $2,102 27 $2,294 27 9% 1302 Scientific 1,200 3,160 - 2,100 - < 34%> 1303 Media Relations 720 525 - 737 - 40% 1304 Information Center 124 132 - 125 - < 5%> 1305 Excise Issue 1,566 2,205 - 2,004 - < 9%> 1306 Fire Safety Issue 865 805 - 835 - 4% 1307 General Coalitions 2,215 2,146 - 2,397 - 12% 1308 Advertising Issue 855 577 - 425 - < 26%> 1309 Public Smoking Issue 5,020 3,533 - 4,295 - 22% 1311 "Social Cost" Issue 698 267 - 422 - 58% Total Budget $15,452 $15,452 27 $15,634 27 1% ~ 10/25/90 PAD.DSR (TYP1)

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