Missouri Tobacco Tax Increase

1. Missouri Tobacco Tax Increase Misty Snodgrass Legislative/Government Relations Director American Cancer Society

2. Why a Tobacco Tax? • Each year thousands of Missourians are diagnosed with tobacco-caused cancers, heart and lung diseases, and many will lose their lives. • Missouri has the lowest cigarette tax (17¢ ) of all states in the nation, and very high smoking and other tobacco product use rates. • Costs an estimated $565 per household in public expenditures, and claims 9,500 lives per year in Missouri from cancer and other smoking-related diseases. • This ballot measure will mean increased longevity, improved quality of life, and fewer Missourians who will needlessly suffer and die from tobacco-caused diseases. • This is a public health initiative that will impact the lives of Missourians for generations to come, through better health and education.

3. Why a Tobacco Tax? Revenue Win • Provides CDC recommended levels of tobacco control funding • Provides additional revenue for K-12 and Higher Education, not subject to legislative appropriations Health Win • One of the most effective ways to reduce smoking rates and other tobacco product use, and helps prevent our youth from ever starting • Increase is on cigarette and other tobacco products

4. State Tobacco Tax Excise Rates

5. Background • A diverse group of organizations and individual Missourians led by the American Cancer Society has filed a proposition on tobacco taxes to provide badly needed funding for public education, higher education and public health in Missouri. • Due to the Hancock Amendment limiting state taxes, Missouri’s legislature can only raise the tobacco tax approximately 15 to 17 cents during a session. • Research shows that such a small tax increase would not produce the needed public health benefits.

6. Background • In addition to saving lives and reducing current and future health care costs due to smoking, the measure would help Missouri’s workforce infrastructure by enhancing education funding for tomorrow’s workers. • Increasing tobacco taxes is a proven way to decrease smoking rates and cigarette consumption, especially among children. • Tobacco use is the most preventable cause of premature illness and death in the United States and Missouri. • Tobacco use accounts for at least 30% of all cancer deaths and 87% of lung cancer deaths. • Increasing tobacco taxes is the single most effective way to reduce tobacco consumption and prevent youth initiation.

7. Health Impact in Missouri Smoking Prevalence • Missouri adults 21.1%, Missouri is 11th highest in smoking prevalence now • 19.5% high school students smoke • 8,600 Missouri kids (under 18) become new daily smokers each year. • Annual healthcare costs directly caused by smoking: $2.13 billion • Annual cost of smoking to Medicaid: $532 million

8. Surrounding States

9. $.73 Tax Increase Projected Benefits • Kids in Missouri kept from becoming addicted adult smokers: 40,800 • Current adult smokers in the state who would quit: 33,000 Smoking-affected births avoided over next five years: 8,200 • Missouri residents saved from premature smoking-caused death: 22,200 • 5-year health savings from fewer smoking-affected pregnancies & births: $17.69 million • 5-year health savings from fewer smoking-caused heart attacks & strokes: $11.80 million • Long-term health savings in the state from adult & youth smoking declines: $1.37 billion

10. Allocation of Funding • 50% Elementary and Secondary Education (emphasis in the classroom) • 30% Universities and Colleges (emphasis on training healthcare providers) • 20% Prevention and Quit Assistance

11. Elementary and Secondary Education • Prevent staff reductions & increased class sizes. • Ballot language includes safeguard to ensure additional revenue to K-12 education (supplement, not supplant) Distribution method • DESE shall distribute • Foundation formula until school funding formula is fully funded • Then funds will distributed on a per pupil basis • At least 25% of the moneys shall be used in direct classroom expenditures Purposes, include, but not limited to: • Teacher recruitment & retention, salaries or professional development; • School construction, renovation, or leasing; • Technology enhancements, textbooks, or instructional materials; • School safety; or • Supplying additional funding for required state & federal programs.

12. Higher Education • Department of Higher Education distributes to public colleges and universities • Based on proportion of basic operating appropriations for preceding FY • 25% shall be used for programs related to the education, training, and development of future caregivers • including physicians, dentists, optometrists, pharmacists, nurses, and other healthcare providers

13. Tobacco Prevention and Quit Assistance • Responsible for establishing initiatives to promote tobacco use quit assistance and prevention and public health for tobacco-related disease • including a comprehensive statewide tobacco control program • 15% may be used for public health, including loan forgiveness or scholarships for medical professionals who work in underserved areas

14. Timeline • Filed the final initiative in Jan. 2012 • Turned in Signatures: May 4, 2012 • SOS Approves: 30 Days After Signatures Filed • Ballot November 2012

15. Things you can do: • Reach out to Alumni: Support and Fundraising • Access to Campus • Campus Organizations • Faculty • Op/Ed and Letters to the Editor • Use Campus photos/images in promotional/ads • Endorsements

16. Thank You! Contact: misty.snodgrass@cancer.org 573.268.9046