National Report ranks Missouri last for
funding tobacco prevention programs

(Jefferson City) -"Show us the Money: A Report on the States’ Allocation of the Tobacco Settlement Dollars," released today by the Campaign for Tobacco Free Kids and other public health groups, ranks Missouri last among states across the nation in funding tobacco prevention programs. In 2002, Missouri was ranked 15th in the nation following the dedication of $18.7 million of tobacco Master Settlement Agreement (MSA) funds for tobacco-use prevention. However Missouri dropped to 51st place when Governor Holden used his executive authority in 2002 to redirect the MSA funds dedicated to tobacco prevention to balance the budget.

Last week Governor Holden announced during his budget address that he would not use any of the settlement funds for tobacco prevention in FY2004. Instead, he would ask the legislature to securitize a portion of the settlement to balance the budget.

In 2002, the Missouri Legislature passed a law authorizing the securitization, or sale to investors,of up to  30 percent of the $4.5 billion it expects to receive from tobacco settlement revenues over the next 25 years. At least 18 states and the District of Columbia have sold the rights to, or securitized, all or part of their future tobacco settlement payments to investors for a much smaller up-front payment. Governor Holden is now asking the legislature to approve a plan for the state to back the bonds sold as part of securitization and use these funds to offset the budget deficit.

"Scuritizing tobacco settlement funds is only a temporary fix for Missouri’s budget problems," said Lori Pickens, CEO of the American Lung Association of Eastern Missouri and Chairperson of Missouri Partnership on Smoking or Health. "It is like cashing in your child’s college fund to pay off your credit card bill. By using the settlement funds to balance the budget, state leaders are not addressing the enormous public health problem caused by tobacco use."

According the Missouri Department of Health and Senior Services costs every Missourian $700.00 a year. Medical costs related to smoking are estimated at $1.66 billion with Medicaid expenditures exceeding $415 million. Tobacco-caused productivity losses in our state are estimated at $2.17 billion annually. Missouri has the third highest adult smoking rate (27.2%) in the nation and over 10,000 smoking-related deaths occur every year. Nearly a third (30.3%) of all Missouri middle school students begin smoking on average at 11 years old. Almost 140,000 Missouri youth are projected to die 13.8 years prematurely if the smoking rate remains constant in our state.

"The evidence is clear that, even in these difficult budget times, tobacco prevention is one of the smartest and most fiscally responsible investments that Missouri can make," said Deborah Boldt, Executive Director of the Missouri Partnership on Smoking or Health. "Tobacco prevention is good public health policy that will protect our kids from tobacco and provide help to those who want to quit. It is also good fiscal policy to reduce the tremendous amounts spent to treat smoking-related diseases under Medicaid and other state-funded health care programs," she added.

States with successful tobacco prevention programs, such as Maryland, Maine, Minnesota and Mississippi, have demonstrated that prevention programs not only save lives, but money for taxpayers, saving up to three dollars in smoking-related health care costs for every dollar spent on prevention. The Centers for Disease Control and Prevention recommends that Missouri spend a minimum of $33 million dollars annually for an effective comprehensive tobacco prevention program. The state receives $268 million each year in tobacco settlement funds, yet Missouri has not spent any of these funds on tobacco prevention.

The Missouri Partnership on Smoking or Health is a statewide coalition advocating for better health for all Missourians through improved public policy on tobacco.

A copy of "Show us the Money: A Report on the States’ Allocation of the Tobacco Settlement Dollars" by the Campaign for Tobacco Free Kids, American Lung Association, American Cancer Society, American Heart Association, and SmokeLess States National Tobacco Policy Initiative is available at  www.tobaccofreekids.org