The 131st Annual Meeting (November 15-19, 2003) of APHA

Abstract #63955

James F. Igoe, MA, MLS¹, Raedell Wallace¹, and Melissa S. Albuquerque². (1) Center for Health Policy and Legislative Analysis, The MayaTech Corporation, 1100 Wayne Avenue, Suite 900, Silver Spring, MD 20910-5645, (301) 587-1600, jigoe@mayatech.com, (2) Office on Smoking and Health, Centers for Disease Control and Prevention, 4770 Buford Highway, N.E., Mailstop K-50, Atlanta, GA 30341-3717

In 1998, 46 states signed the Master Settlement Agreement (MSA) which requires the tobacco companies to make annual payments to the states as reimbursement for past tobacco-related costs. Tobacco companies must pay approximately $206 billion over the first 25 years of the MSA. Florida, Minnesota, Mississippi, and Texas signed earlier, individual agreements with the tobacco companies that total $40 billion over 25 years. The tobacco settlement agreements have no requirements on how the states spend their payments; states may choose to use the funds for any purpose.

This paper reviews how states are allocating their tobacco settlement payments for tobacco use prevention and cessation programs. Specifically, the paper examines: (1) the methodology used to analyze tobacco appropriations data gathered from state legislation, (2) the types of funding strategies created with tobacco settlement monies, and (3) the comparisons and trends among the states that have emerged over the past six years.

The data illustrate that the allocation of tobacco settlement payments for tobacco control purposes varies widely among the states. Recent trends indicate a decrease in the amounts allocated to tobacco control and a growing reliance on securitization of future payments in response to state budget pressures.

Learning Objectives:

• At the conclusion of the session, the participant will be able to identify and discuss state fiscal strategies for allocating tobacco settlement monies to support tobacco control efforts.

Keywords: Tobacco Settlement, Tobacco Legislation

Related Web page: www2.cdc.gov/nccdphp/osh/state/

Presenting author's disclosure statement:
I do not have any significant financial interest/arrangement or affiliation with any organization/institution whose products or services are being discussed in this session.