Tobacco funds to be used to fund the state job stimulus package – anti-tobacco advocates voice concern

A $1.57 billion bipartisan job stimulus package unveiled by state leaders this week tapped numerous other funding sources – including most of the money currently held by the Ohio Tobacco Prevention Foundation. The package includes a $400 million November bond issue that would double the size of the Clean Ohio Fund, which finances green space and industrial redevelopment projects. It would also provide: $250 million toward internships and co-ops under a Higher Education Workforce Program; $120 million for the Historic Preservation Tax Credit; and money for logistics and distribution projects ($100 million), bio initiatives ($150 million), advanced energy ($150 million), and local infrastructure needs ($400 million).

The AMCNO and other anti-smoking advocates including the Ohio Tobacco Prevention Foundation were not aware of state policymakers’ latest plan to divert previously earmarked money toward other uses until the announcement was made this week. The OTPF was notified of the decision through a news report. When it was set up by the state in 1999, OATF was projected to receive $1 billion for an endowment to continuously fund anti-smoking and cessation efforts. Funding, however, stalled at more than $300 million, and last year the state sold its future payments from Big Tobacco for a lump sum of about $5.5 billion – most of which was earmarked for school facility projects.

Saying the statewide smoking ban has curbed tobacco use across the Ohio in recent months, and that Ohio has spent significant money on health care upgrades, Gov. Ted Strickland said OTPF would have to be prudent with its remaining funds and raise private money through the authority it was granted last year.

In a statement released by the Investing in Tobacco-Free Youth Coalition, a coalition comprised of various healthcare organizations, hospitals and groups, including the AMCNO, it was noted that “it is especially ironic that a stimulus package to help improve Ohio’s economy is funded by money that provides for programs proven to reduce the huge economic costs to Ohio caused by tobacco use. Tobacco use costs Ohio over $7 billion every year, over $1 billion of which is for Medicaid which makes up a huge portion of the state budget. In fact, the average household in Ohio pays $642 in state and federal taxes related to smoking-caused government expenditures. Without sufficient investment in programs that reduce smoking rates, healthcare costs and productivity losses will increase, affecting the state, taxpayers, and employers.” 

The coalition is urging lawmakers to protect the Ohio Tobacco Prevention Foundation’s endowment. AMCNO will continue to monitor this issue and report back to our members.