MSA FUNDING

What is MSA Funding?

The Master Settlement Agreement was an agreement made with the tobacco industry. The funding is meant for cessation and prevention programs like TRU.

History of MSA

In 1998, Pennsylvania and 45 other states entered into a Master Settlement Agreement with the tobacco industry. The Master Settlement Agreement was estimated at a minimum of $206 billion dollars nationwide; Pennsylvania was allotted an estimated $11 billion dollars to be disbursed in the first 25 years of the agreement.[1] Between July 2016 and June 2017, Pennsylvania will receive approximately $354 million in MSA funding.

Recommendations

Total funding for comprehensive tobacco control at the levels recommended by the CDC to meet the needs of Pennsylvanians: $140 million annually

Funding Timeline

 

Year Funding Change
2001 In 2001, PA passed legislation (ACT 77), allocating 12% of the MSA budget to tobacco cessation and prevention. In the intervening years, that budget has taken several hits as described in these tabs. Tobacco prevention and cessation is now down to less than 5% of the MSA budget.
2005 3% of Tobacco Prevention and Cessation funds used to patch up holes in the state budget.
2010 Tobacco cessation and prevention fund decreased by 45%, forcing the elimination of the majority of tobacco cessation and prevention programs that target youth and the community.
2013 An MSA-Related arbitration panel ruled against PA in a non-participating manufacturer adjustment dispute, reducing the 2014 payment by $169.9 million.
2015 The tobacco cessation and prevention fund remains decreased by a 45% funding cut. The PA Department of Health estimates that $14.2 million will be allocated for tobacco control and prevention programming. This is only 10% of the CDC’s recommended spending level of $140 million.
2017 The Pennsylvania legislature floated a bond using MSA funds to balance the state budget. MSA funds no longer support tobacco cessation and prevention programs in Pennsylvania; without a dedicated funding street, future program funding may be vulnerable to budget cuts.

References:

[1] Pennsylvania Alliance to Control Tobacco (PACT). Tobacco Control Issues: Master Settlement Agreement. Available: http://pactonline.org/tobacco-control-issues/master-settlement-agreement/.