U.S. State and Local Issues

Spending on Tobacco Prevention: South Dakota

Last updated November 29, 2011

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 8th among the states in the funding of tobacco prevention programs.  South Dakota’s spending on tobacco prevention amounts to 4.7% of the estimated $85 million in tobacco-generated revenue the state collects each year from settlement payments and tobacco taxes.

Recent Developments: The FY2012 budget passed by the legislature and signed by Gov. Dennis Daugaard (R) allocated $4 million for tobacco prevention. While this is a slight increase from what was appropriated in FY2011, it is still well below the CDC-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.

In addition, South Dakota is receiving $963,055 from the U.S. Centers for Disease Control and Prevention in a 12-month grant for the period beginning April 2011 (from annual appropriations).