U.S. State and Local Issues

Spending on Tobacco Prevention: South Dakota

Last updated December 05, 2012

Summary: The U.S. Centers for Disease Control and Prevention (CDC) recommends that South Dakota spend $11.3 million a year to have an effective, comprehensive tobacco prevention program.  South Dakota currently allocates $4.0 million a year for tobacco prevention and cessation.  This is 35.4% of the CDC’s recommendation and ranks South Dakota 11th among the states in the funding of tobacco prevention programs.  South Dakota’s spending on tobacco prevention amounts to 4.4% of the estimated $90 million in tobacco-generated revenue the state collects each year from settlement payments and tobacco taxes.

Background and Recent Developments: South Dakota’s lawmakers allocated $4 million of state funding for tobacco prevention and cessation programs in FY2013, the same amount as in FY2012. This is a slight increase from the FY2011 appropriation, but it is still less than half of the CDC’s recommended spending for South Dakota.

A November 2006 ballot initiative increased the state cigarette tax by $1.00 per pack and increased the tax on other tobacco products to 35 percent of the wholesale price. This measure was expected to provide approximately $5 million per year for tobacco prevention and cessation. But during the 2010 legislative session, the legislature decided to reduce spending on tobacco prevention and cessation to $3.5 million for FY2011, and funding has remained below $5 million since then.

The combination of South Dakota’s state and federal funds meets the state’s statutory requirement that the tobacco prevention program spend $5 million annually.

In addition, South Dakota is receiving $1.0 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).