State should kick its habit of raiding tobacco fund
POSTED: Saturday, January 16, 2010
Hawaii earned sterling grades in the years following the 1998 nationwide settlement with tobacco companies for its use of the money to battle smoking. Last year's raid on the tobacco fund caused those grades to plunge. The state should prepare to restore the investment in health as soon as the economic crisis comes to an end.
For years, Hawaii earned a grade of A from the American Lung Association for the share of Big Tobacco money spent by the state on tobacco prevention and cessation programs. The shifting of money for other uses because of the recession has dropped the state's grade to D.
The state receives more than $53 million a year from the settlement and 24.5 percent has been going to the state's rainy day fund. Other amounts have been directed to the Department of Health, some of which are being diverted to the general fund, and the University of Hawaii's School of Medicine, leaving 12.5 percent for specific prevention and cessation programs.
Last year's Legislature cut the share of funds going to those programs to 6.5 percent. When combined with other federal and state funds, the amount going to tobacco prevention was dropped from $11.3 million to $8.8 million. According to rates recommended by the U.S. Centers for Disease Control and Prevention, Hawaii should be spending $15.2 million on those programs.
The Lung Association gave Hawaii an F for cessation coverage under the state Medicaid program and state employees' health plan. It gave the same failing score nationally while noting that the health care reform legislation includes expansion of coverage under Medicaid, Medicare and insurance programs; the House version provides broader coverage.
Hawaii earned a top grade for the extensive prohibition of smoking in government and private workplaces, schools, child care facilities, stores, bars and restaurants. Those rules were ahead of most other states' regulations.
The state also received a commendable B by the Lung Association for increasing the state tax on cigarettes last July from $2 to $2.60 a pack, to increase by 20 cents this July and again next year, to $3 a pack. Increasing prices by 10 percent reduces consumption by 3 percent to 5 percent and discourages young people from beginning the lethal habit, according to the Centers for Disease Control.
It may be wishful thinking by the state Department of Taxation that tobacco revenue will increase by more than $32 million in the current fiscal year. After all, the state can't reduce the number of cigarette purchases and tax them, too.