RD215 - Annual Report on the Activities of Tobacco Indemnification and Community Revitalization Commission


Executive Summary:
This report covers the 6th fiscal year of the Virginia Tobacco Indemnification and Community Revitalization Commission. The numbers, lists and brief descriptions of our projects are but a snapshot of the true scope of our charge. Since 1999, we have invested more than $389 million in Virginia’s tobacco-producing regions. These monies have indemnified growers and quota holders, built educational facilities, provided critical infrastructure and allowed new jobs to locate in the region, but most importantly, our Commission has provided hope and assistance to a region in transformation.

This past year the Commission received $67.1 million from the Master Settlement Agreement (MSA). As per your legislative mandate these funds were used exclusively for two purposes: indemnification and revitalization. Thirty percent of MSA revenue was used for indemnification purposes, 67 percent went into revitalization projects, and three percent was used for administration. This report details the specifics of revenues and expenditures.

The most dramatic change that occurred during this fiscal year was the securitization of one-half of the Commission’s share of future MSA revenues. This securitization will allow us to continue our long term strategy for revitalization in tobacco-producing regions while minimizing the risks associated with future tobacco settlement revenues.