State is criticized over its use of tobacco funds

Suzanne Struglinski

Thursday, Dec. 2, 2004 | 11:05 a.m.

WASHINGTON -- Anti-smoking groups want Nevada to spend more money from cigarette taxes and the tobacco settlement directly on smoking prevention programs, according to a report released today.

Nevada spends a large percentage of that money on college scholarships and prescription drug programs.

The state spends about $4.4 million a year directly on tobacco prevention programs, or about 3 percent of the $154 million it receives in tobacco tax and settlement money, according to the report by several anti-smoking groups.

The Centers for Disease Control and Prevention recommends the state spend between $13.5 million and $33 million a year to have an effective tobacco prevention program. Nevada ranks 23rd among the states in prevention program funding, according to the report.

But the state uses the bulk of its tobacco money for the Millennium Trust Fund to provide scholarship to Nevada universities, with other money allocated for a prescription drug program for senior citizens and the disabled.

"People who are better educated are healthier people, and studies have proven that," said Gov. Kenny Guinn's spokesman Greg Bortolin. "The governor has felt all along that putting money into the Millennium Scholarship will help educate people. The Millennium Scholarship is a major initiative, and a major response. It's an appropriate response."

But anti-smoking groups want to see states reach at least the minimum recommended amount for prevention programs, which in Nevada's case would take an additional $9 million, said Vince Willmore, communications director for the Campaign for Tobacco Free Kids. The Campaign released the report, along with the American Heart Association, American Cancer Society and American Lung Association.

Willmore said Nevada could reach a higher funding level for prevention programs and still have plenty of money left over for other purposes. He said the Centers for Disease Control and Prevention has specific recommendations for prevention efforts, such as ad campaigns, phone lines that offer counseling for those trying to quit, effective enforcement of youth smoking laws and others.

"The states receive billions of dollars from the tobacco companies, they have a moral obligation to use some of that," Willmore said. "It's good fiscal policy and would save the state money over time."

Nevada's $154 million in tobacco revenue comes from $117.8 million collected in state tobacco taxes and $36.3 million from the 1989 lawsuit settlement with tobacco companies. Nevada increased its cigarette tax to 80 cents in 2003.

A 1999 state law divided Nevada's settlement money with 40 percent earmarked to the Millennium Trust Fund for college scholarships; 10 percent to the Trust Fund for Public Health and 50 percent to the Fund for a Healthy Nevada.

Willmore said smoking and tobacco-related illness cost Nevadans $440 million a year in health care costs or about $486 in tax money per household in Medicare costs alone. Every $1 spent on prevention would save $3 in health care costs, he said.

He said he was not aware of any research that showed a direct link between higher education and smoking.

"It's a bank shot, it's a big bank shot," he said.

The state would have a greater and direct impact with prevention programs, he said.

But Bortolin said it is just a simple difference of opinion on what the anti-smoking groups wants and how the state see fits to spend the money.

"That's simply their point of view,' he said.

The multi-billion lawsuit settlement between 46 states and the tobacco companies reached in 1989 has no legal requirement the money be used for anti-smoking efforts, said Joy Johnson Wilson, health policy director at the National Conference of State Legislatures.

"State revenues have been an issue of late and every state has had to make tough choices about how to spend their dollars," she said.

The CDC recommended dollar amounts do not take into account the other spending the states have to do, she said.

"That's not the real world," she said.