Maryland's Tobacco Resource Center - Linking Professionals to Best Practices

Maryland Tobacco Industry and Its Distribution of Revenue Towards Tobacco Programming

May
2013

In 2000, the Maryland State Assembly created the Cigarette Restitution Fund in which significant funds are intended to go towards programs for cancer treatment and research, smoking cessation, and Medicaid expenses. These funds primarily come from annual payments made by tobacco companies as a part of the 1998 Master Tobacco Settlement Agreement with the tobacco industry. For the fiscal year 2013, Maryland acquired a total of $149.1 million for the fund of which approximately $85.7 million went to Medicaid and $17.6 million went to cancer prevention, screening, and treatment. Unfortunately, in that same time period, Maryland generated a total tobacco revenue of $555 million. Only $4.2 million or 0.8 % of that total revenue went to tobacco prevention and cessation.  Additionally, the $4.2 million falls short of the Centers for Disease Control and Prevention budget recommendation of $63 million on tobacco programming. Hopefully in the future Maryland will come closer to meeting its goal of $63 million and ultimately increase in prevention and intervention efforts towards tobacco use.