Washington, DCUpdated: December 9, 2009
*For FY2010, federal spending refers to a nine-month grant provided to the states by the U.S. Centers for Disease Control and Prevention for the period beginning July 2009. Tobacco Generated Revenue (FY2009) CDC Recommended Spending on Tobacco Prevention Actual Spending on Tobacco Prevention (FY2009)
Summary: The U.S. Centers for Disease Control and Prevention (CDC) recommends that District of Columbia spend $10.5 million a year to have an effective, comprehensive tobacco prevention program. District of Columbia currently receives $1.4 million a year for tobacco prevention and cessation, which includes both state and federal funds. This is 13.1% of the CDC's recommendation and ranks District of Columbia 31st among the states in the funding of tobacco prevention programs. District of Columbia's spending on tobacco prevention amounts to 1.6% of the estimated $87 million in tobacco-generated revenue the state collects each year from settlement payments and tobacco taxes. Recent Developments: The District of Columbia was among the last localities to make a decision on how to use its tobacco settlement funds. In 2001, after three years of budget debates with no spending decisions, the City Council agreed to then-Mayor Anthony Williams' (D) plan to securitize most of the settlement funds by issuing bonds backed by the $1 billion that city expects to receive over the next 25 years. The money raised was transferred into a trust fund and will be used to pay the city's debt. The tobacco settlement payments are used every year to re-pay the bonds. Once the bondholders are paid, any remaining money from the trust will be held in escrow for three years. Beginning in 2004, any remaining funds are to be available for expenditure for other programs. These funds are still subject to appropriation by the City Council and Mayor. A Reserve Fund was also created to cover any residual cost from each year's payment. If the money in the Reserve Fund is not needed for the bond payment in June, a portion will be released in July each year for other expenditures. The Mayor and City Council must then agree on how to spend any residual funds. Beginning in fiscal year 2007, the DC City Council allocated $10 million for a tobacco prevention program over three years. The program and funds are administered by the American Lung Association of DC. In FYs 2007-2009, DC spent a total of $10 million spread over three years in state funds for tobacco prevention programs. DC has allocated minimal funds to tobacco prevention despite the fact that the state is receiving more tobacco-generated revenue than ever before as a result of a 50-cent cigarette tax increase, bringing it $2.50 a pack, which went into effect in 2009. The DC City Council, through the DC Cancer Consortium, has allocated $850,000 for Quitline and free NRT services for FY2010. Combined with funds from the Centers for Disease Control and Prevention, total spending on tobacco prevention and cessation for FY2010 will be $1.4 million, significantly less than what was spent in FY2009. Additional Resources
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