Program Funding

PACT Recommendation: Allocate funding for comprehensive tobacco control at the levels recommended by the CDC to meet the needs of Pennsylvanians ($140 million annually).

Funding for Cessation and Prevention Programs: Masters Settlement Agreement (MSA) with the Tobacco Industry

In 1998, Pennsylvania and 45 other states entered into a Master Settlement Agreem
ent with the
tobacco industry. The Master Settlement Agreement was estimated at a minimum of
$206 billion dollars
nationwide
;
Pennsylvania was allotted an estimated $11 billion dollars to be disbur
sed in the first 25
years of the agreement

In 1998, Pennsylvania and 45 other states entered into a Master Settlement Agreement with the tobacco industry. The Master Settlement Agreement was estimated at a minimum of $206 billion dollars nationwide; Pennsylvania was allotted an estimated $11 billion dollars to be disbursed in the first 25 years of the agreement.[i] Between July 2016 and June 2017, Pennsylvania will receive approximately $354 million in MSA funding. Between July 2016 and June 2017, Pennsylvania will receive approximately $354 million in MSA funding.

Tobacco Cessation Funding

Tobacco cessation and prevention funding for FY 17 comprises 13.7 million from MSA and $3.07 million in federal funding, for a total of $16.77 million. This represents only 12 percent of the CDC-recommended spending level of $140 million.

Funding Timeline

Year Funding Change
2001 In 2001, PA passed legislation (ACT 77), allocating 12% of the MSA budget to tobacco cessation and prevention. In the intervening years, that budget has taken several hits as described in these tabs. Tobacco prevention and cessation is now down to less than 5% of the MSA budget.
2005 3% of Tobacco Prevention and Cessation funds used to patch up holes in the state budget.
2010 Tobacco cessation and prevention fund decreased by 45%, forcing the elimination of the majority of tobacco cessation and prevention programs that target youth and the community.
2013 An MSA-Related arbitration panel ruled against PA in a non-participating manufacturer adjustment dispute, reducing the 2014 payment by $169.9 million.
2015 The tobacco cessation and prevention fund remains decreased by a 45% funding cut. The PA Department of Health estimates that $14.2 million will be allocated for tobacco control and prevention programming. This is only 10% of the CDC’s recommended spending level of $140 million.
agreement

[i] Pennsylvania Alliance to Control Tobacco (PACT). Tobacco Control Issues: Master Settlement Agreement. Available: http://pactonline.org/tobacco-control-issues/master-settlement-agreement/