NCPA - National Center for Policy Analysis


December 8, 2005

Only a fraction of the money that states receive from the 1998 tobacco settlement and tobacco taxes is being used to prevent smoking, according to a report released by several advocacy groups.

The report, titled "A Broken Promise to Our Children," was released by Campaign for Tobacco-Free Kids, American Heart Association, American Cancer Society and American Lung Association.

  • Researchers found that states in total have allocated $551 million for tobacco-use prevention programs in fiscal year 2006, although the Centers for Disease Control (CDC) recommend $1.6 billion in spending.
  • Meanwhile, the tobacco industry spends $15.4 billion to market tobacco products -- nearly 28 times the amount states spend on prevention.
  • Maine, Colorado, Delaware and Mississippi are the only states that spend at least the minimum levels recommended by CDC.
  • Michigan, Missouri, New Hampshire, South Carolina, Tennessee and Washington, D.C., spend no state funds on prevention programs, while 30 other states spend less than half of the recommended amount.
  • CDC's recommended minimums for individual states range from $7.3 million to more than $165 million, based on population size and need.

The researchers said that rather than funding smoking prevention efforts, states often use tobacco-related funds to pay off budget shortfalls or fund capital campaigns and construction projects. Tobacco industry officials said states should use funds from the $206 billion settlement for their intended purpose.

Source: "A Broken Promise to Our Children: The 1998 State Tobacco Settlement Seven Years Later," Campaign for Tobacco-Free Kids, American Heart Association, American Cancer Society, and American Lung Association, November 30, 2005.


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