*For FY2009, 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 2008. In April 2009, the CDC will transition to a new funding agreement with the states that will provide the usual 12-month grant.
Summary: The U.S. Centers for Disease Control and Prevention (CDC) recommends that Minnesota spend $58.4 million a year to have an effective, comprehensive tobacco prevention program. Minnesota currently receives $21.5 million a year for tobacco prevention and cessation, which includes both state and federal funds. This is 36.8% of the CDC's recommendation and ranks Minnesota 16th among the states in the funding of tobacco prevention programs. Minnesota's spending on tobacco prevention amounts to 3.6% of the estimated $596 million in tobacco-generated revenue the state collects each year from settlement payments and tobacco taxes.
Recent Developments: In FY2009, legislatively-allocated funding for tobacco prevention remains low. However Minnesota's health continues to benefit from the 1998 settlement that the state and Blue Cross and Blue Shield of Minnesota (Blue Cross) reached separately with the tobacco industry. The settlement resulted in the creation of ClearWay Minnesota, an independent non-profit organization that impacts state spending on tobacco prevention separate from legislative action. In FY2009, Minnesota will receive $21.5 million for tobacco prevention and cessation programs--including $17.3 million approved by ClearWay Minnesota's Board of Directors, $3.2 million in state funds, and $989,000 in federal funds. Blue Cross was also a party to the state's individual tobacco settlement. Funded with $241 million in settlement funds, Blue Cross launched a long-term initiative in 2006 to improve the health of Minnesotans. Blue Cross expenditures on tobacco prevention, while substantial, are not public money and do not meet the criteria for inclusion in the state total for this report. Because of both public policy and program success, Minnesota's adult smoking rate is 16.5 percent, down more than a quarter in five years. However, Minnesota's tobacco prevention strategy is still unbalanced. Some aspects of CDC's best practices, like cessation, are pursued in aggressive and innovative ways, while others are not adequately addressed.