BY MARK WINEKA
SALISBURY POST

State Sen. Jim Phillips, D-Lexington, says a tobacco settlement plan passed Tuesday by the General Assembly was the best thing to do for North Carolina’s future.

State Rep. Charlotte Gardner, R-Rowan, complains that it has the potential to create the state’s biggest slush fund ever.

The Legislature gave final approval Tuesday to a settlement plan that would pump half of the state’s $4.6 billion share from a national agreement into a nonprofit foundation.

The foundation is supposed to help tobacco-dependent communities in the wake of declining industry profits.

The plan calls for the remaining half of the money to go into two trust funds controlled by lawmakers. One would benefit farmers, industry workers and allotment holders; the other would aid health care interests.

‘‘It creates a foundation to boost economic development in our state’s economically distressed communities,’’ Phillips said in a statement. ‘‘It gives tobacco workers and farmers the help they need and deserve, and it sets aside more than $1.1 billion for pressing public health needs such as preventive care and teen smoking prevention.’’

Supporters of the plan, mostly Democrats, say the foundation proposal is the best hope for farmers to benefit from the $4.6 billion. Leaving the money instead to the whims of the yearly appropriations process would leave farmers with little or nothing, they say.

But many farmers felt betrayed by the General Assembly’s action Tuesday. Gardner said creation of the foundation is a ‘‘complete abdication of legislative responsibility.’’

‘‘The farmers in this state have been pawns in all of this, frankly,’’ Gardner said.

Farmers have been demanding that 50 percent of the settlement money go directly to them, even though many lawmakers have said the state constitution likely prohibits any direct payments to farmers.

North Carolina tobacco growers also stand to benefit from a voluntary agreement with tobacco companies, which is expected to put $1.9 billion into the pockets of farmers and allotment holders.

Farmers, though, are fearful that they may never see that money because of the tough financial times and continuing lawsuits against the cigarette makers.

‘‘I’m really glad my daddy’s dead, so he didn’t have to see this,’’ said Kenneth Talton, a Selma tobacco farmer who was among many farmers who packed the Legislature’s gallery Tuesday. ‘‘He would be really disappointed to see the party he had supported all his life to turn against the farmer.’’

‘‘They are down here playing politics with our livelihood,’’ added Caswell County farmer Harold Blackard.

Lawmakers said the foundation would be dedicated to tobacco workers, farmers, quota holders and ‘‘communities whose livelihoods have centered on tobacco.’’ A 15-member foundation board will be appointed by Gov. Jim Hunt, Senate Pro Tem President Marc Basnight and House Speaker Jim Black, all Democrats.

The other half of the settlement money will go into two trust funds: the Tobacco Families Support Trust Fund and the Public Health Fund.

The Tobacco Families Fund would give direct payments to tobacco factory workers, farmers and quota holders ‘‘who have been hit hard by instability in the tobacco industry,’’ Phillips said.

The Public Health Fund would dedicate more than $1.1 billion for the state’s pressing health needs, such as preventive care and teen-smoking prevention, according to Phillips.

The tobacco settlement legislation passed the House by a 61-58 vote. Both Gardner and Rep. Eugene McCombs, R-Rowan, voted against it. Five Democrats joined all but one House Republican in voting against the settlement.

Those against the bill said the foundation should be scrapped in favor of splitting the money between farmers and health programs.

The Senate, again mostly along party lines, approved of the settlement by a 34-14 vote.

‘‘They massaged the bill a little bit, which made it a bit more palatable,’’ Gardner said of the Democratic leadership, ‘‘but it certainly did not ease my comfort level to any extent.’’

Gardner continues to have questions about the foundation and the vagueness of some of the language associated with it. What does ‘‘economic-impact assistance to tobacco-dependent regions’’ really mean, she asked.

Gardner also fears that the foundation board will become too political because only the Democratic leaders are making the appointments. Judging from appointments made from last year’s Marine Fisheries Reform Bill, she doesn’t have faith in the appointment process, Gardner said.

The Joint Commission on Governmental Operations is supposed to have some oversight responsibilities with the new foundation, but Gardner said she looks on it as another political, rubber-stamp board.

One consolation is that the foundation’s board meetings will be subject to open meetings laws, Gardner said.

Sen. Betsy Cochrane, R-Davie, says her area, over time, could lose some 6,000 jobs from the decline in tobacco.

‘‘That magnitude of loss has a ripple effect on hardware stores, drugstores, retail shops, church giving, charitable contributions, etc.,’’ she said. ‘‘Even if the foundation money helps impacted communities, how does it do that fairly?’’

Both Gardner and Cochrane questioned whether the state will ever see any money from the tobacco settlement.