North Carolina

Summary: The U.S. Centers for Disease Control and Prevention (CDC) recommends that North Carolina spend $106.8 million a year to have an effective, comprehensive tobacco prevention program. North Carolina currently receives $20.0 million a year for tobacco prevention and cessation, which includes both state and federal funds. This is 18.7% of the CDC's recommendation and ranks North Carolina 24th among the states in the funding of tobacco prevention programs. North Carolina's spending on tobacco prevention amounts to 4.7% of the estimated $428 million in tobacco-generated revenue the state collects each year from settlement payments and tobacco taxes.

Recent Developments: North Carolina's tobacco settlement funds are governed by a 1999 law that placed all of the monies into three trust funds. The Golden LEAF Foundation receives 50 percent of the funds for assistance to tobacco-dependent communities. The Tobacco Trust Fund receives 25 percent for direct aid to tobacco farmers, quota holders, tobacco manufacturing workers and tobacco-related businesses. The remaining 25 percent of the funds are placed in a Health and Wellness Trust Fund (HWTF), which is administered by the North Carolina Health and Wellness Trust Fund Commission.

North Carolina is spending minimal amounts on tobacco prevention despite the fact that the state is receiving more tobacco-generated revenue than ever before as a result of a 10-cent cigarette tax increase in 2009, bringing North Carolina's tax to 45 cents a pack.

In FY 2009, HWTF was scheduled to receive $43.8 million. However, the North Carolina General Assembly enacted legislation to transfer $24.4 million from HWTF to help address budget shortfalls. Another $5 million will be transferred in FYs 2010 and 2011 from HWTF to the State's general fund. In 2004, the General Assembly also enacted legislation requiring HWTF to pay over $352 million from FY2005-FY2030 in debt service for University of North Carolina construction projects under the State Capital Facilities Act of 2004. In FY2009, $10.7 million was transferred from HWTF for the debt service and the FY2010 payment is projected to be $21.7 million. In spite of all these fund diversions, HWTF has allocated $18 million for tobacco prevention efforts in FY 2010.

Combined with funds from the Centers for Disease Control and Prevention, total spending on tobacco prevention and cessation for FY2010 will be $20.0 million, more than what was spent in FY2009.