U.S. State and Local Issues

Spending on Tobacco Prevention: North Carolina

Last updated December 05, 2012

  FY2013 FY2012
State Rank 51 21
State Spending on Tobacco Prevention $0 $17.3 million
% of CDC Recommended Spending
($106.8 )		 0% 16.2%

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 does not currently allocate anything for tobacco prevention and cessation and as a result it ranks 50th among the states in the funding of tobacco prevention programs.  North Carolina collects an estimated $433 million in tobacco-generated revenue each year from settlement payments and tobacco taxes.

Background and Recent Developments: In FY2013, state lawmakers eliminated North Carolina’s tobacco control program. It is now tied for last in the nation for funding tobacco prevention and cessation programs.

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

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 Legislature failed to appropriate new state funding for tobacco prevention and cessation in FY2013 but elected to allocate $2.7 million in non-recurring federal block grant funds to continue the state’s quitline, with a small portion going to teen tobacco use prevention efforts.  

North Carolina is receiving $3.0 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 2012 (from annual appropriations).

  • $751,942 from the Prevention and Public Health Fund in the new health care reform law for the period beginning August 1, 2012. 

  • $554,222 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.