*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.
Summary: The U.S. Centers for Disease Control and Prevention (CDC) recommends that Rhode Island spend $15.2 million a year to have an effective, comprehensive tobacco prevention program. Rhode Island currently receives $1.9 million a year for tobacco prevention and cessation, which includes both state and federal funds. This is 12.2% of the CDC's recommendation and ranks Rhode Island 34th among the states in the funding of tobacco prevention programs. Rhode Island's spending on tobacco prevention amounts to 1.0% of the estimated $193 million in tobacco-generated revenue the state collects each year from settlement payments and tobacco taxes.
Recent Developments: The Rhode Island tobacco prevention and cessation program is funded entirely through the state's general fund. In 2002, the state approved a plan to sell, or securitize, the state's rights to $1.19 billion in future tobacco settlement payments, for a smaller, one-time payment of $600 million. The funds were used to address budget shortfalls and pay capital and operating expenses in FY2002-FY2004. Securitization left Rhode Island with no tobacco settlement funding available for tobacco prevention and other purposes after FY2004.
In FY2010, the state allocated $703,000 for the state tobacco prevention and cessation program, almost a quarter less than the amount that was allocated in FY2009. Combined with funds from the Centers for Disease Control and Prevention, total spending on tobacco prevention and cessation in FY2010 will be $1.9 million.
Rhode Island is spending minimal amount son tobacco prevention despite the fact that the state is receiving more tobacco-generated revenue than ever before as a result of a $1.00 cigarette tax increase in 2009, bringing the state's cigarette tax to $3.46 a pack.