The tobacco settlement looks like being a victim of its own success. The settlement with the states tied the money to future sales and restrictions on sales and high-costs for name brand cigarette makers are shrinking their share of the market, reports the Washington Post. And as market share drops, so too does the states' share of tobacco money.

Of course, the states have been using the money for all kinds of things besides anti-smoking campaigns and health costs. In Nevada, the money supports millennium scholarships, senior transportation services and a host of state activities. And they could be facing cuts.

Last week, the Business Press reported that there would be no way to restore funding from other sources despite a healthy surplus from other revenues until the Legislature reconvenes in 2007. The man who looks like a prophet without honor in his own state is Treasurer Brian Krolicki. He wanted to monetize the settlement - that is, sell bonds so the state would get the money up front and the bondholders would bear the risk of a falling market share.

The plan was rejected as a financial game akin to California's sale of bonds to balance its budget. Now, Krolicki's plan looks real smart because Nevada will have to bear the cost of the loss the Treasurer's plan would have avoided.