Tobacco revenues falling short of expectations.

• Position: News Briefs

State governments may soon have to rethink their plans to fund health, education, and other programs with the money from the $240 billion national tobacco settlement. According to a recent study by the Council of State Governments, revenues from the settlement are coming in significantly lower than what was initially projected. Tobacco revenues were 11 percent less than anticipated through April, and the shortfall is expected to be 20 percent, or $14 billion, by 2010. The decline is attributed to steadily reduced cigarette consumption nationwide and to an increase in cigarette sales by small...