U.S. State and Local Issues

Spending on Tobacco Prevention: Vermont

Last updated December 05, 2012

Summary: The U.S. Centers for Disease Control and Prevention (CDC) recommends that Vermont spend $10.4 million a year to have an effective, comprehensive tobacco prevention program.  Vermont currently allocates $4.0 million a year for tobacco prevention and cessation.  This is 38.2% of the CDC’s recommendation and ranks Vermont 10th among the states in the funding of tobacco prevention programs.  Vermont’s spending on tobacco prevention amounts to 3.1% of the estimated $127 million in tobacco-generated revenue the state collects each year from settlement payments and tobacco taxes.

Background and Recent Developments: In FY2013, Vermont’s funding for tobacco prevention and cessation is $4.0 million, a twenty percent increase from FY2012’s funding of $3.3 million. Since FY2009, the total tobacco control program budget has been cut by more than 20 percent. In addition, Vermont’s Trust Fund, which was set up to insulate money from the Master Settlement Agreement and ensure the long-term health of the tobacco control program, has instead been used as a revenue source during budget shortfalls over the past two years. Approximately $19 million was diverted for general budget purposes, leaving the fund with a balance of only $4 million.

Vermont is spending less than the CDC-recommended amount on tobacco prevention despite the fact that the state is receiving more tobacco-generated revenue than ever before because of a 38 cent cigarette tax increase enacted in 2011, bringing the state rate to $2.62 a pack.  

In addition, Vermont is receiving $1.2 million in federal funds dedicated to tobacco prevention and control:

• $1.1 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).

• $50,000 from the Prevention and Public Health Fund in the new health care reform law for the period beginning August 1, 2012.