MSA FUNDING

What is MSA Funding?

The Master Settlement Agreement was an agreement made between Pennsylvania and 45 other states across the country and the tobacco industry. The money earned from this agreement 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 to pay for the costs caused by lives lost due to tobacco.[1] In 2001, Pennsylvania created Act 77 which established the Tobacco Settlement Fund (where all MSA funds are place once received). It also established related programs that are supported by the fund. However, since 2001, our funding has been eroded. Without the necessary dollars from this Master Settlement Agreement, we wouldn’t have the prevention programs and the cessation programs to help teens in PA stay tobacco-free. 

Recently, in May 2020, we achieved level-state funding for our programs. However, this funding is only secure for the short-term budget that lasts until November 2020. As a result, we need the help of our advocates (like TRU groups!) to continue advocating for funding of our programs.

 

What Does this Mean for You?

Basically, this means that without the necessary funding, tobacco prevention programs like TRU wouldn’t exist! That’s why we need the help of TRU groups like YOURS to help us continually advocate for the right funding we need to make our programs great and to help protect youth across PA from a life of nicotine addiction. Find ways to advocate with our activities below or check out our Advocacy Toolkit and watch our Advocacy 101 webinar to learn more.

Recommendations

Allocate level state funding ($14.735 million) for FY21 to
comprehensive tobacco prevention and control programs.

 

Get Involved

1) Tell us why YOU believe that tobacco prevention and control funding is important by starting a social media campaign using the hashtag #SaveMSAinPA and tagging @TRUinPA

2) Using The Face You Fund activity linked in the below resources, create a large picture frame at home or use one of our digital frames to take a selfie and post on social media using the hashtag #TheFaceYouFund and tagging @TRUinPA and your lawmaker! This is a great way to showcase where those dollars go and how it helps people like YOU!  

 

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/.