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Indiana Appealing Decision That Cut Tobacco Money

Last updated on Friday, December 6, 2013

(INDIANAPOLIS) - Indiana is appealing an arbitration panel’s ruling that reduces the state’s share of tobacco settlement funds next year by nearly half to $68 million from about $131 million.

The office of Attorney General Greg Zoeller said Wednesday it was appealing the decision. The office says the arbitration panel of three retired federal judges exceeded its authority under law and the process they used hurt Indiana's case.

The panel decided in September to decrease Indiana's share by about $63 million next year because it found the state had failed to do enough to collect funds from cigarette companies that weren't part of the original settlementin 1998.

The money Indiana receives from the tobacco settlement pays for anti-smoking programs and other health care programs.

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