Flynn Opposes Tobacco Funds for Fines

Signaling a growing rift over the county’s $260-million tobacco settlement, Supervisor John Flynn said Friday the county should reconsider its practice of using the settlement to pay off a $15.3-million fine to the federal government.

He said he will urge the Board of Supervisors when it meets Tuesday to find other funds in the county’s budget to pay off the fine, imposed several months ago over improper Medicare billings that continued for years.

Until now, Supervisor Frank Schillo had been the only board member to oppose using the money from the tobacco settlement to pay the fines. Flynn said he changed his mind after Community Memorial Hospital said it would ask voters in the fall to take the money from the county and give it to private health-care providers.

Also contributing to his change of heart was Friday’s announcement by the Healthcare Assn. of Southern California, which said it is categorically opposed to using the settlement to pay government fines. The association represents the seven private hospitals in Ventura County, as well as scores of private hospitals throughout Southern California.

“I can preach all day long . . . but there’s too much misunderstanding” among voters of the issues involved, Flynn said.

Community Memorial’s November ballot initiative hinges on convincing voters that the county is not committed to improving health-care programs with the settlement. The hospital hopes to show voters that paying off fines to the federal government is an example of bad government, and says giving the money to private hospitals ensures the funds will go to health care.

Supervisors last year approved in a 4-1 vote the use of settlement funds to pay off the first $3.1-million installment of the penalty, which is being spread out over five years.

Schillo, the lone dissent at the time, said the money should go toward improving health-care programs. He welcomed Flynn’s comments Friday, saying the board “has to consider all the aspects of what’s going on.” The initiative “is a major factor at this point in time.”

County interim Chief Administrative Officer Harry Hufford had planned on paying the next installment in the same fashion, and maintains it is a legitimate health-care expense. If supervisors want to revisit the issue he is willing to do so, he said. But he cautioned against being pressured into making policy decisions for political reasons.

Supervisor Susan Lacey could not be reached for comment Friday. Supervisor Judy Mikels declined comment through a spokeswoman. Supervisor Kathy Long, chairwoman of the board, indicated she would continue to support Hufford’s position.

“It’s not good public policy to keep changing your position every other day,” she said.

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Times Community News reporter Gina Piccalo contributed to this report.