*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 South Carolina spend $62.2 million a year to have an effective, comprehensive tobacco prevention program. South Carolina currently receives $1.0 million a year for tobacco prevention and cessation, which includes both state and federal funds. This is 1.6% of the CDC's recommendation and ranks South Carolina last among the states in the funding of tobacco prevention programs. South Carolina's spending on tobacco prevention amounts to 0.9% of the estimated $114 million in tobacco-generated revenue the state collects each year from settlement payments and tobacco taxes.
Recent Developments: Under a 2000 agreement between the Legislature and then-Governor Jim Hodges (D), South Carolina securitized its future tobacco settlement proceeds by selling them to investors in exchange for a smaller lump sum payment. The $910 million raised was transferred into four trust funds. The Legislature is responsible for appropriating the money available from the trust funds annually for programs. No tobacco settlement funds have been dedicated to tobacco prevention since 2003.
For FY2009, South Carolina will receive $1.0 million in federal funds for tobacco prevention and cessation. The state Legislature allocated no funds for tobacco prevention programs for FY09. The state cut all funding from the $2.0 million it allocated for FY2008.