Kansas City, Mo. ? Missouri spent nearly half of the money it received from a 1998 tobacco settlement last year to cover budget shortfalls and plans to do so again this year, according to a recent report by the federal Government Accountability Office.

Meanwhile, Kansas spent none of its settlement money last year on shortfalls and doesn’t plan to change that in fiscal 2005, the report said.

Under the settlement, tobacco companies are required to make annual payments to 46 states, the District of Columbia and five U.S. territories for past tobacco-related health costs. Overall, they will pay $206 billion over 25 years to the states.

Last year, Missouri received nearly $145.3 million in tobacco funds and expects to get $144 million in fiscal 2005, which ends June 30.

Kansas received $54 million in 2004 and expects to get about $57.3 million this year.

The report says Missouri used 48.7 percent of its tobacco money in 2004 — or almost $71 million — to cover budget shortfalls and plans to spend a similar amount in 2005.

Almost half of the money was spent last year on health-related costs, such as Medicaid payments to health-care providers and prescription drug assistance for low-income senior citizens, the report said, and roughly the same amount is expected to be spent this year.

An additional $4.4 million in tobacco money was allocated last year to Missouri’s general fund, which pays for education, Medicaid and other services.

Kansas spent the largest share of its tobacco money in 2004 — more than $32 million — on social services and expects to increase that to nearly $42 million in 2005, the report said. In 2004, $11 million was put into the general fund, but that number is expected to fall to about $5.1 million this year.

Nationwide, states received $9.7 billion in tobacco funds last year, spending 44 percent on budget shortfalls and 20 percent on health-related programs, the GAU said.

States have received about $47 billion in tobacco money since 2000, including proceeds from the sale of bonds backed by anticipated tobacco payments, the report said.