U.S. State and Local Issues

Spending on Tobacco Prevention: North Carolina

Last updated November 29, 2011

  FY2012 FY2011
State Rank 21 22
State Spending on Tobacco Prevention $17.3 million $18.3 million
% of CDC Recommended Spending
($106.8 million)		 16.2% 17.1%

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 allocates $17.3 million a year for tobacco prevention and cessation.  This is 16.2% of the CDC’s recommendation and ranks North Carolina 21st among the states in the funding of tobacco prevention programs.  North Carolina’s spending on tobacco prevention amounts to 4.0% of the estimated $431 million in tobacco-generated revenue the state collects each year from settlement payments and tobacco taxes.

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

In 2011, state lawmakers abolished the HWTF and transferred $22 million of the remaining HWTF funds as one-time funding to the North Carolina Department for Health and Human Services for public health programs, including tobacco prevention. The state will spend $17.3 million of that on tobacco prevention and cessation in FY2012, slightly less than was spent in FY2011.  However, these funds are non-recurring and funding for the program will expire unless the Legislature provides new funding starting in FY2013.  If the Legislature fails to provide new funding, North Carolina would be tied for last in the nation in funding tobacco prevention and cessation programs. 

North Carolina is spending minimal amounts on tobacco prevention even though the state is receiving more tobacco-generated revenue than ever before as a result of increases in the tobacco tax rates in 2009. The rate increases brought North Carolina’s cigarette tax to 45 cents a pack from 35 cents, and the tax on other tobacco products to 12.8 percent of the wholesale price.

In addition, North Carolina is receiving $2.4 million in federal funds dedicated to tobacco prevention and control:

  • $1.7 million from the U.S. Centers for Disease Control and Prevention in a 12-month grant for the period beginning April 2011 (from annual appropriations).

  • $139,210 from the Prevention and Public Health Fund in the new health care reform law. 

  • $595,026 from the Food and Drug Administration for enforcement of the Family Smoking Prevention and Tobacco Control Act, including the provision regarding tobacco sales to minors.