Latest news with #TobaccoPreventionandReductionTrustFund
Yahoo
04-04-2025
- Health
- Yahoo
South Dakota tobacco tax shift burns up mosquito control money for cities, counties
A move to put more tobacco tax money toward South Dakota's day-to-day government expenses might mean more mosquito bites — and a greater risk of West Nile virus — after July. Gov. Larry Rhoden signed Senate Bill 54 into law on Friday. It reduces the amount of yearly tobacco tax revenue used to help people quit and avoid smoking from $5 million to $2 million. The rest of the money raised annually by the tax — more than $40 million, typically — goes to the state's general fund. Backers of the bill said smoking rates have dropped, the need for prevention is lower, and the state needs the money to pay for its expanded Medicaid program. Opponents called the move foolish, citing spikes in the use of nicotine vape products as a blind spot in tobacco prevention that could cause public health trouble down the road. One piece of the tobacco tax change didn't get much attention, though. For the past 10 years, South Dakota has funneled a half-million dollars of the sin tax bounty it collects annually from tobacco users into mosquito control grants for cities and counties. Those grants, cities and counties learned last week, won't be available for the next fiscal year, which starts July 1. The goal of the grant program was to reduce the risk of West Nile virus, the most severe version of which can be deadly. Fifty-four South Dakotans have died from West Nile since 1999. The loss of the grant money could impact smaller communities more than larger ones. Joe Kippley, public health director for the city of Sioux Falls, said his department anticipated the loss and has budgeted to continue mosquito spraying. In smaller towns, the loss of grant funding could be a little harder to replace. After this summer, 'we're not sure what will happen,' Viborg Finance Officer Brandy Skonhovd said. The story of how cigarette dollars turned into insecticide grants begins in 2006. That's the year voters passed Initiated Measure 2, which slapped an additional $1-per-pack tax on cigarettes and an extra 25% tax on other forms of tobacco on top of the state's existing tobacco taxes. The first $30 million of tax revenue generated as a result went to the state's general fund, the measure specified, after which $5 million would be put in the Tobacco Prevention and Reduction Trust Fund and used for anti-smoking programming. Tax collections beyond $35 million would split between the Property Tax Reduction Fund, the Education Enhancement Tobacco Trust Fund and the Health Care Tobacco Trust Fund. That setup had shifted by 2014. That's the year Doneen Hollingsworth, who was the secretary of the Department of Health, asked lawmakers to sign off on using a half-million dollars from the $5 million anti-smoking fund for mosquito control grants. The recession of 2007 through 2009 tightened budgets, she said. The state had already begun to dip into that fund to pay for things like childhood immunizations, she told them, and there was a new problem to address in 2014. The federal money for West Nile monitoring and mosquito control made available to states when the virus first emerged had dried up. Then-Gov. Dennis Daugaard proposed using tobacco tax money that year, Hollingsworth said, 'to address this urgent public health issue' by keeping the grant money flowing to local governments. That wouldn't break the law, Hollingsworth assured the Legislature's Joint Appropriations Committee. The state, in 2014 and today, gets about a million anti-smoking dollars a year from the federal government. As long as that money is available, she said, the state could skim up to a million prevention trust fund dollars off the top and still meet voters' expectations. 'We've always spent at least $5 million on tobacco prevention and control,' she said. Since then, the state has spent about $5 million from the fund to control mosquitoes. Grant awards, used for chemicals or the equipment needed to spray it, are tied to the prevalence and risk of West Nile in local communities. During debate on this year's legislative Senate Bill 54, Bureau of Finance and Management Commissioner Jim Terwilliger told lawmakers it never made much sense to tie the grants to tobacco funding. 'That's an example of the different things that I think can go away, and we could be smarter with these funds,' the commissioner told the Senate Appropriations Committee in February, during his pitch for reducing the amount of tobacco tax money the state spends on anti-smoking programs. Terwilliger rattled off statistics on lower smoking rates among teens and adults in the years since voters passed the tobacco tax, too, and said South Dakota spends more on anti-tobacco programming than other states. Jennifer Stalley, Midwest policy director for the American Cancer Society Cancer Action Network, was on hand to refute Terwilliger point-by-point in her opposition testimony. But she and Terwilliger saw eye to eye on one thing. 'I would tell you that I don't think that fits within the letter of the law,' Stalley said of the use of tobacco money for mosquito control. Lawmakers' passage of SB 54 put an end to the $500,000 carve-out for West Nile, and appropriators didn't supplement the state budget with any replacement funds to keep the grants going. Tia Kafka, spokeswoman for the state Department of Health, said the state will continue parts of its West Nile virus programming. That includes federally funded risk prediction modeling and a federally funded epidemiologist to serve as the program's overseer. Also continued will be the state's West Nile Virus dashboard, which shows modeled risk and the mapped results of the mosquito collection efforts that attempt to catalog the prevalence of the mosquito species that spread the virus. 'However, very limited mosquito testing will occur in 2025, and the program's sustainability beyond that year is uncertain,' Kafka said. Virus modeling predicted 60 cases for 2024; the dashboard lists 21 total West Nile cases and one death from the disease. The Health Department's website does not show a prediction for 2025. It costs Viborg around $2,500 to buy the insecticide used to reduce West Nile risk, according to Skonhovd, the city finance officer. The city got $8,000 last year, though, to pay for new equipment. The spraying in and around the southeast South Dakota town of 834 starts in May and continues into the fall. 'When we have football games, we try to keep the mosquito population down for those,' Skonhovd said. Paul Kosel runs the mosquito control program for Groton, population 1,355. Kosel is also the newspaper publisher and information technology supervisor for the community, bordered by wetlands on the eastern side of Brown County. That county has long been the state's most reliably risky for West Nile in the two-plus decades the disease has been endemic in South Dakota. 'Trying to do mosquito control in Groton is a living nightmare because we're surrounded by water,' Kosel said. Kosel and Skonhovd both say they feel confident they'll be able to pay for this year's work with the money that's available until July 1, when the tobacco-funded grant spigot turns off with the end of the state's fiscal year. After that, they both hope the state finds a way to keep things going. Insecticide and equipment can be a strain on a small-town budget. 'It's not cheap, that's for sure,' Kosel said. Larger cities could have an easier time. Joe Kippley, public health director for the city of Sioux Falls, set aside $750,000 for mosquito control this summer. Last year, the city received $20,000 from the state for spraying, but Kippley said the city knew the money would go away this year, and that it had previously set its budget up to withstand the expense of spraying with or without state help. 'We do not budget for these grant dollars annually because they are distributed through an application process and are therefore not guaranteed each year,' Kippley said in an emailed statement. 'The discontinuation of this funding will not impact the city's mosquito control program and services.' This article originally appeared on Sioux Falls Argus Leader: Tobacco tax shift burns up mosquito control money for cities, counties
Yahoo
02-04-2025
- Health
- Yahoo
Tobacco tax shift burns up mosquito control money for cities, counties
Tom Hedrick calibrates a mosquito fogger for the city of Groton. (Paul Kosel/Groton Independent) A move to put more tobacco tax money toward South Dakota's day-to-day government expenses might mean more mosquito bites — and a greater risk of West Nile virus — after July. Gov. Larry Rhoden signed Senate Bill 54 into law on Friday. It reduces the amount of yearly tobacco tax revenue used to help people quit and avoid smoking from $5 million to $2 million. The rest of the money raised annually by the tax — more than $40 million, typically — goes to the state's general fund. Backers of the bill said smoking rates have dropped, the need for prevention is lower, and the state needs the money to pay for its expanded Medicaid program. Opponents called the move foolish, citing spikes in the use of nicotine vape products as a blind spot in tobacco prevention that could cause public health trouble down the road. Budget committee approves $3 million cut to SD's tobacco-use prevention fund One piece of the tobacco tax change didn't get much attention, though. For the past 10 years, South Dakota has funneled a half-million dollars of the sin tax bounty it collects annually from tobacco users into mosquito control grants for cities and counties. Those grants, cities and counties learned last week, won't be available for the next fiscal year, which starts July 1. The goal of the grant program was to reduce the risk of West Nile virus, the most severe version of which can be deadly. Fifty-four South Dakotans have died from West Nile since 1999. The loss of the grant money could impact smaller communities more than larger ones. Joe Kippley, public health director for the city of Sioux Falls, said his department anticipated the loss and has budgeted to continue mosquito spraying. In smaller towns, the loss of grant funding could be a little harder to replace. After this summer, 'we're not sure what will happen,' Viborg Finance Officer Brandy Skonhovd said. The story of how cigarette dollars turned into insecticide grants begins in 2006. That's the year voters passed Initiated Measure 2, which slapped an additional $1-per-pack tax on cigarettes and an extra 25% tax on other forms of tobacco on top of the state's existing tobacco taxes. The first $30 million of tax revenue generated as a result went to the state's general fund, the measure specified, after which $5 million would be put in the Tobacco Prevention and Reduction Trust Fund and used for anti-smoking programming. CONTACT US Tax collections beyond $35 million would split between the Property Tax Reduction Fund, the Education Enhancement Tobacco Trust Fund and the Health Care Tobacco Trust Fund. That setup had shifted by 2014. That's the year Doneen Hollingsworth, who was the secretary of the Department of Health, asked lawmakers to sign off on using a half-million dollars from the $5 million anti-smoking fund for mosquito control grants. The recession of 2007 through 2009 tightened budgets, she said. The state had already begun to dip into that fund to pay for things like childhood immunizations, she told them, and there was a new problem to address in 2014. The federal money for West Nile monitoring and mosquito control made available to states when the virus first emerged had dried up. Then-Gov. Dennis Daugaard proposed using tobacco tax money that year, Hollingsworth said, 'to address this urgent public health issue' by keeping the grant money flowing to local governments. That wouldn't break the law, Hollingsworth assured the Legislature's Joint Appropriations Committee. The state, in 2014 and today, gets about a million anti-smoking dollars a year from the federal government. As long as that money is available, she said, the state could skim up to a million prevention trust fund dollars off the top and still meet voters' expectations. 'We've always spent at least $5 million on tobacco prevention and control,' she said. Since then, the state has spent about $5 million from the fund to control mosquitoes. Grant awards, used for chemicals or the equipment needed to spray it, are tied to the prevalence and risk of West Nile in local communities. During debate on this year's legislative Senate Bill 54, Bureau of Finance and Management Commissioner Jim Terwilliger told lawmakers it never made much sense to tie the grants to tobacco funding. 'That's an example of the different things that I think can go away, and we could be smarter with these funds,' the commissioner told the Senate Appropriations Committee in February, during his pitch for reducing the amount of tobacco tax money the state spends on anti-smoking programs. Terwilliger rattled off statistics on lower smoking rates among teens and adults in the years since voters passed the tobacco tax, too, and said South Dakota spends more on anti-tobacco programming than other states. Prevention groups fear consequences from Noem's proposal to reduce funding for anti-tobacco efforts Jennifer Stalley, Midwest policy director for the American Cancer Society Cancer Action Network, was on hand to refute Terwilliger point-by-point in her opposition testimony. But she and Terwilliger saw eye to eye on one thing. 'I would tell you that I don't think that fits within the letter of the law,' Stalley said of the use of tobacco money for mosquito control. Lawmakers' passage of SB 54 put an end to the $500,000 carve-out for West Nile, and appropriators didn't supplement the state budget with any replacement funds to keep the grants going. Tia Kafka, spokeswoman for the state Department of Health, said the state will continue parts of its West Nile virus programming. That includes federally funded risk prediction modeling and a federally funded epidemiologist to serve as the program's overseer. Also continued will be the state's West Nile Virus dashboard, which shows modeled risk and the mapped results of the mosquito collection efforts that attempt to catalog the prevalence of the mosquito species that spread the virus. 'However, very limited mosquito testing will occur in 2025, and the program's sustainability beyond that year is uncertain,' Kafka said. Virus modeling predicted 60 cases for 2024; the dashboard lists 21 total West Nile cases and one death from the disease. The Health Department's website does not show a prediction for 2025. It costs Viborg around $2,500 to buy the insecticide used to reduce West Nile risk, according to Skonhovd, the city finance officer. The city got $8,000 last year, though, to pay for new equipment. The spraying in and around the southeast South Dakota town of 834 starts in May and continues into the fall. 'When we have football games, we try to keep the mosquito population down for those,' Skonhovd said. Paul Kosel runs the mosquito control program for Groton, population 1,355. Kosel is also the newspaper publisher and information technology supervisor for the community, bordered by wetlands on the eastern side of Brown County. That county has long been the state's most reliably risky for West Nile in the two-plus decades the disease has been endemic in South Dakota. 'Trying to do mosquito control in Groton is a living nightmare because we're surrounded by water,' Kosel said. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX Kosel and Skonhovd both say they feel confident they'll be able to pay for this year's work with the money that's available until July 1, when the tobacco-funded grant spigot turns off with the end of the state's fiscal year. After that, they both hope the state finds a way to keep things going. Insecticide and equipment can be a strain on a small-town budget. 'It's not cheap, that's for sure,' Kosel said. Larger cities could have an easier time. Joe Kippley, public health director for the city of Sioux Falls, set aside $750,000 for mosquito control this summer. Last year, the city received $20,000 from the state for spraying, but Kippley said the city knew the money would go away this year, and that it had previously set its budget up to withstand the expense of spraying with or without state help. 'We do not budget for these grant dollars annually because they are distributed through an application process and are therefore not guaranteed each year,' Kippley said in an emailed statement. 'The discontinuation of this funding will not impact the city's mosquito control program and services.' SUPPORT: YOU MAKE OUR WORK POSSIBLE
Yahoo
23-02-2025
- Health
- Yahoo
Tobacco bill advancing through legislature
SIOUX FALLS, S.D. (KELO) — If it becomes law, Senate Bill 54 would decrease the amount of money that goes into South Dakota's Tobacco Prevention and Reduction Trust Fund. Those who support the change call it a necessary step because of the state's tight budget. Opponents worry it could impact smoking and vaping rates. Under the current South Dakota law, the first $30 million of tax revenue from cigarettes and other tobacco products goes to the state general fund. The next $5 million goes into the Tobacco Prevention and Reduction Trust Fund. Senate Bill 54 would reduce the amount going toward the Tobacco and Prevention Trust Fund to $2 million, allowing an extra $3 million to go into the general fund. Jim Terwilliger, commissioner of the Bureau of Finance and Management, is a proponent of the bill. 'This is one of the areas where we felt we could still do a really good job of offering tobacco prevention services but also be smarter with how we spend the money and then allocate some of those funds to the general fund, which will help cover some of our increased health care costs that we're seeing on the general fund side,' Terwilliger said. Carla Graciano with the American Cancer Society Cancer Action Network opposes the $3 million cut. 'The tobacco companies are spending about $24.9 million per year on marketing for their products in South Dakota,' Graciano said. 'We're only spending $5 million to fund our tobacco prevention and control program, and a $3 million cut is going to be detrimental to reduce smoking rates.' Terwilliger points to a recent decrease in smoking rates in South Dakota. Graciano says Senate Bill 54 could turn those numbers around. 'That problem has gotten gotten smaller over time. The public's attitude towards tobacco has changed, so we thought it was an opportunity to reinvest those dollars into other areas,' Terwilliger said. 'If we don't have the resources to keep programs like the Quit Line, we know that the smoking rates are going to increase, and the smoking deaths are going to also increase,' Graciano said. SB 54 passed the Senate by a vote of 21-14. Next, it heads to the House. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
29-01-2025
- Health
- Yahoo
Lawmakers advance bill to cut tobacco-use prevention fund by $2 million
State Sen. Kevin Jensen, R-Canton, contemplates a committee vote during the South Dakota legislative session in Pierre on Jan. 29, 2025. Also pictured is Sen. Sydney Davis, R-Burbank. (Joshua Haiar/South Dakota Searchlight) PIERRE — A committee of South Dakota lawmakers advanced a bill 5-2 on Wednesday at the Capitol to reduce state funding for tobacco and vaping prevention efforts. But the lawmakers softened the proposed cut following a debate over public health and budget priorities. The bill, originally intended to slash annual funding for the state's Tobacco Prevention and Reduction Trust Fund from $5 million to $2 million, was amended to set the new funding level at $3 million. Prevention groups fear consequences from Noem's proposal to reduce funding for anti-tobacco efforts The bill is a priority of former Gov. Kristi Noem, and now Gov. Larry Rhoden's administration. The Senate Health and Human Services Committee sent the amended bill to the Legislature's budget committee with a positive recommendation. Bureau of Finance and Management Commissioner Jim Terwilliger said the state needs to make budget cuts to help cover a $62 million increase in Medicaid costs. Opponents of the bill, including public health advocates and medical organizations, warned that reducing tobacco prevention funding could undo years of progress in reducing smoking and vaping rates, particularly among youth. Terwilliger said smoking rates have declined significantly in South Dakota over the past two decades. 'The $5 million that's been spent has been successful, certainly, but you're also looking at a smaller problem to tackle, if you will, in terms of tobacco prevention,' he said. Terwilliger said the state receives $1 million annually in federal tobacco prevention grants, which will remain intact. The reduced state contribution would continue funding South Dakota's QuitLine services and other prevention efforts, he said. Public health advocates pushed back, saying the state is trading short-term savings for long-term costs in health care. South Dakota voters approved a 2006 ballot measure to dedicate a portion of increased cigarette tax revenue to prevention efforts. Jennifer Stalley, a lobbyist for the American Cancer Society Cancer Action Network, helped make that happen. She warned that the bill undermines that commitment and could lead to a resurgence of youth tobacco use, particularly vaping and nicotine pouches. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX Stalley said the state is spending $5 million to fight a $75 million annual problem in smoking-related health care costs, driving up the cost of Medicaid. 'Taking our foot off the gas right now, because we're doing well, isn't going to make sure that we are successful,' she said. 'It's going to make sure that in five years or 10 years – hopefully, not me – we're going to be back here going through this litany of asks again to get back to a successful program.' Kim Malsam-Rysdon is a former secretary of the state Department of Health and a current Avera Health lobbyist. Avera has a contract to manage the state's QuitLine program. She said it is one of the most effective in the nation with a 49% long-term success rate. 'We need to continue to fund these services. We also need to continue our other prevention services so that people never have to get to the QuitLine,' she said. Sen. Tim Reed, R-Brookings, successfully proposed the amendment to set the new funding level at $3 million instead of the originally proposed $2 million. He said the change is a compromise that acknowledges budget constraints while hopefully preserving key prevention efforts.
Yahoo
27-01-2025
- Health
- Yahoo
Noem proposes major cut to tobacco prevention in South Dakota
If lawmakers approve Gov. Kristi Noem's proposal to cut the state tobacco prevention fund, anti-tobacco advocates say more children are likely to use tobacco and nicotine products, more adults will die early and the state will pay millions of dollars in new health care costs over the long run. Since 2007, South Dakota has allocated $5 million annually to a fund that pays for programs to help tobacco users give up the habit and to prevent children and adults from ever starting. The money pays for counseling services through the South Dakota Quitline, for medications to help people kick the addictive habit and for state and local tobacco-prevention programs. South Dakota lawmakers: Lab-grown meat should be clearly labeled The money comes from the state tax on annual sales of tobacco products, mainly cigarettes, and was part of Initiated Measure 2 that voters passed in 2006 to raise the tax on a pack of cigarettes by $1 and increase the taxes on other tobacco products. The ballot measure also dictated that the first $30 million in tobacco taxes would go to the state general fund and the next $5 million would go to a new Tobacco Prevention and Reduction Trust Fund, which pays for the South Dakota Tobacco Control Program. Tobacco tax revenues over the $35 million level would also flow into the general fund. IM 2 passed with almost 61% of the vote. This year, Noem has proposed cutting the funding of the tobacco control program to $2 million a year, a 60% reduction. According to Senate Bill 54, the other $3 million would be sent to the state's general fund each year moving forward. Aberdeen dining scene: Jersey Mike's opens new sub shop A spokeswoman for the state Department of Health, which administers the tobacco prevention program, told News Watch that the program's success at preventing tobacco use is the reason the funding can now be cut. "The program has a track record of success, and we have seen a downward trend in tobacco use," DOH spokeswoman Tia Kafka wrote in an email. "As a result, the governor's budget proposal right-sizes funding of tobacco prevention dollars.' State records show that the state spent about $5.3 million on tobacco and nicotine prevention in fiscal year 2024, with $4.9 million in contracted services for the state program and about $382,000 on grants and subsidies to local prevention organizations. The major expenditures, according to state contracts, were $1 million to Vilas Pharmacy of Pierre for tobacco cessation medications and $824,000 to Avera Health Plans to provide "telephone and other tobacco cessation counseling and support services for the SD Quitline." Tobacco tax revenues have fallen steadily over time in South Dakota. In fiscal year 2014, the state collected $52 million in state cigarette taxes and another $7.4 million in other tobacco taxes, for a total of $59.4 million. In fiscal 2024, state cigarette tax collections were $44 million and other tobacco tax collections were $11.8 million, for a total of $55.8 million, according to the Department of Revenue. Colin Keeler of the state Bureau of Finance and Management, said the health department will use the remaining $2 million in tobacco tax money and about $1 million in tobacco prevention money the state already receives from the Centers for Disease Control and Prevention to fund tobacco programs at an annual rate of $3 million. But at that level of funding, South Dakota will fall even further below the CDC's recommendation of $12 million in annual spending on tobacco prevention for the state. Even though tobacco use is dramatically down in South Dakota, an average of 1,300 people die each year from smoking-related illnesses and the state spends an estimated $433 million annually on associated health costs, according to the American Cancer Society. The number of adult cigarette smokers in the U.S. and South Dakota has declined sharply and steadily over the past several decades. In South Dakota, 15% of adults were smokers in 2023, compared to 11% nationally, according to the lung association. Smoking rates among Native Americans have also declined but not as much, and Native Americans smoke at roughly double the rate of non-Native adults in South Dakota and the U.S. Youth tobacco use nationally has declined over the past few decades, especially when it comes to cigarette smoking, with 34.8% of high school students smoking at least once in the past 30 days in 1995 compared to 1.4% in 2024, according to the U.S. Food and Drug Administration. In South Dakota, according to a 2022 statewide survey, 5.5% of high school students reported smoking cigarettes in the past 30 days and 15.8% reported using vaping devices in the past month. Jodi Radke, South Dakota representative of the Campaign for Tobacco-Free Kids, said her organization estimates that cutting tobacco prevention funding by 60% will increase youth smoking rates by 5%, lead 300 more children to become adult smokers, with 100 of those dying prematurely, and create $4.8 million in new health care costs due to smoking-related illnesses over the next few decades. "Funding tobacco control is critical to impacting youth rates, so to cut funding from that really does impact outcomes in terms of kids becoming lifelong users," Radke said. Ben Hanson, South Dakota policy director for the American Cancer Society Cancer Action Network, said the funding cut is a "rob Peter to pay Paul" maneuver the governor is using in a tight revenue year to fund other projects, such as $4 million in new spending on education savings accounts. Noem also has proposed cutting funding to the state library system and to South Dakota Public Broadcasting. "This isn't a haircut, this is gutting the fund," he said. "We're going to talk to each legislator one by one, and let them know the history of this and hopefully create a positive outcome.' This story was produced by South Dakota News Watch, an independent, nonprofit organization. Read more stories and donate at and sign up for an email to get stories when they're published. Contact Bart Pfankuch at This article originally appeared on Watertown Public Opinion: Noem proposes to cut SD tobacco prevention program funding
