Summary: The U.S. Centers for Disease Control and Prevention (CDC) recommends that New York spend $254.3 million a year to have an effective, comprehensive tobacco prevention program.  New York currently receives $81.9 million a year for tobacco prevention and cessation, which includes both state and federal funds.  This is 32.2% of the CDC's recommendation and ranks New York 19th among the states in the funding of tobacco prevention programs.  New York's spending on tobacco prevention amounts to 3.9% of the estimated $2.10 billion in tobacco-generated revenue the state collects each year from settlement payments and tobacco taxes.

Recent Developments: The 1998 settlement stipulated that the state of New York receives 51.2% of the tobacco settlement payments, New York City receives 26.6%, and the 57 counties outside New York City share the remaining 22.2%. The formula for disbursing payments to New York City and the counties is based on the localities' mandatory contributions to Medicaid costs. New York City's base-lined budget for FY2009 includes $11.2 million for tobacco prevention and cessation programming.  

New York's tobacco settlement funds are folded into the state's general fund and allocated through the annual budget process. In 2006, funding for tobacco prevention and cessation was nearly doubled by increasing the program's budget from $43.4 million in FY2006 to $85.5 million in FY2007. In mid-2008, funding was reduced as part of across the board budget cuts in response to a projected revenue shortfall.  

Combined with funds from the Centers for Disease Control and Prevention, total spending on tobacco prevention and cessation in FY2009 will be $81.9 million, more than $5 million less than the $87.6 million spent in FY2008.