*For FY2009, federal spending refers to a nine-month grant provided to the states by the U.S. Centers for Disease Control and Prevention for the period beginning July 2008. In April 2009, the CDC will transition to a new funding agreement with the states that will provide the usual 12-month grant.
Summary: The U.S. Centers for Disease Control and Prevention (CDC) recommends that Ohio spend $145.0 million a year to have an effective, comprehensive tobacco prevention program. Ohio currently receives $7.1 million a year for tobacco prevention and cessation, which includes both state and federal funds. This is 4.9% of the CDC's recommendation and ranks Ohio 45th among the states in the funding of tobacco prevention programs. Ohio's spending on tobacco prevention amounts to 0.6% of the estimated $1.25 billion in tobacco-generated revenue the state collects each year from settlement payments and tobacco taxes.
Recent Developments: At the time of the 1998 state tobacco settlement, Ohio leaders promised to use a portion of the approximately $300 million in settlement funds the state receives each year for programs to prevent kids from smoking and help smokers quit. A 2000 state law created the Ohio Tobacco Prevention Foundation (OTPF) to receive a portion of the settlement funds and establish a permanent endowment. In 2008, Governor Strickland and legislative leaders proposed taking $230 million of the $270 million endowment to fund an economic stimulus package. Subsequently, in an effort to ensure its funds were used as intended for tobacco prevention programs, the Foundation entered into a contract to transfer $190 million of its funds to the American Legacy Foundation, which pledged to use these funds for the benefit of Ohio. This contract was executed shortly before the Legislature passed and the Governor signed into law emergency legislation to liquidate the endowment. OTPF filed a lawsuit challenging the constitutionality and legality of the law, and the presiding judge ordered the Foundation's money frozen. The lawsuit is pending. In FY09, Ohio will spend $6 million on tobacco prevention and cessation. Combined with funds from the CDC, total FY2009 spending on tobacco prevention and cessation will be $7.1 million, 85 percent less than in FY2008.