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OCR Page 1 of 24TOBACCO-
Menu
Of the $18.9 billion/5yrs that is the federal share:
1. Require states to directly reimburse the federal government $2.8 billion or $700 million/yr,
which is (nearly) the $2.9 billion CBO cost of waiving recoupment. The proposal would use
these direct federal payment on:
Public Health ($300): Cessation, prevention and education, licensing and enforcement;
Related Federal Activities ($200): Farmers and research; and
Base Federal Programs ($200): Could be used for other programs in the budget.
By using these payments for federal spending, we would still have a $2.9 billion cost to the bill
(the same as Hutchison).
2. After subtracting these direct federal payments, approximately $4 billion/yr would be
available between FY01-FY04 to be spent by the states on a menu of activities that reflect shared
interests. The draf memo contains three broad categories: tobacco related public health, tobacco
farmers, and other shared state / federal programs.
Tobacco Related Public Health. No less than 15 percent of the funds must be spent in
this area on: cessation, prevention and education, and enforcement.
Tobacco Farmers }
Other Shared State/Fed. Programs
- Coordinated Public Health Services
- CHIP Outreach
*
- Maternal and Child Health Care
- Substance Abuse Treatment and Education
- Child care
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