U.S. State and Local Issues

Spending on Tobacco Prevention: Vermont

Last updated November 29, 2011

  FY2012 FY2011
State Rank 11 9
State Spending on Tobacco Prevention $3.3 million $4.5 million
% of CDC Recommended Spending
($10.4 million)		 31.8% 43.4%

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 $3.3 million a year for tobacco prevention and cessation.  This is 31.8% of the CDC’s recommendation and ranks Vermont 11th among the states in the funding of tobacco prevention programs.  Vermont’s spending on tobacco prevention amounts to 3.1% of the estimated $108 million in tobacco-generated revenue the state collects each year from settlement payments and tobacco taxes.

Recent Developments: In FY2012, Vermont’s funding for tobacco prevention and cessation was $3.3 million, a 25 percent reduction from FY2011. Since FY2009, the total tobacco control program budget has been cut by 35 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.  The tax rates on other tobacco products were last increased in 2010, when the cigarette tax rate was increased as well.

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 2011 (from annual appropriations).

  • $75,365 from the Prevention and Public Health Fund in the new health care reform law.