Summary: The U.S. Centers for Disease Control and Prevention (CDC) recommends that Indiana spend $78.8 million a year to have an effective, comprehensive tobacco prevention program.  Indiana currently receives $16.0 million a year for tobacco prevention and cessation, which includes both state and federal funds.  This is 20.3% of the CDC's recommendation and ranks Indiana 28th among the states in the funding of tobacco prevention programs.  Indiana's spending on tobacco prevention amounts to 2.4% of the estimated $660 million in tobacco-generated revenue the state collects each year from settlement payments and tobacco taxes.

Recent Developments: The biennial state budget for FY08-09, combined with Healthy Indiana Plan (HIP) legislation passed in 2007, produced a significant step forward for Indiana — with $16.2 million in state funds allocated for tobacco prevention and cessation programs each year. However, this year all state agencies were required to put seven percent of their appropriations into a state reserve, meaning actual FY09 state funding will be $15.1 million. Approved thanks to bipartisan support and the leadership of Governor Mitch Daniels (R), HIP increased the state cigarette tax by 44 cents to 99.5 cents per pack. The new revenue provided $1.2 million for tobacco prevention, and funded expanded health care access and childhood immunizations. HIP also includes a small business tax credit and funds for smoking cessation assistance. The remaining funding increase came from settlement payments through the state budget.  While a major step forward, $16.2 million a year still represents roughly half the amount allocated at the start of the MSA. Although past funding cuts have hampered the reach of the Indiana Tobacco Prevention and Cessation Agency (ITPC), the agency has shown impressive results particularly in combination with the cigarette tax increase. Cigarette consumption in Indiana decreased by almost a fifth from 2007 to 2008 and was accompanied by at 260 percent increase in calls to the state quitline.