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Ohio uses tobacco fund to pay for economic stimulus

By JANE HOUIN
Ohio correspondent

COLUMBUS, Ohio — Gov. Ted Strickland recently signed legislation immediately abolishing the Ohio Tobacco Prevention Foundation (OTPF) and authorizing Ohio Treasurer Richard Cordray to liquidate the foundation’s $270 million in remaining funds.

House Bill 544 allows $230 million from Ohio’s tobacco master settlement agreement to help support the state’s $1.57 billion bipartisan economic stimulus package. The remaining $40 million will be distributed to the Tobacco Use Prevention Fund, which will be administered by the Ohio Department of Health.

“The Foundation supports job creation in Ohio – we don’t believe people have to give their lives to do it,” said David Rummel, board chairman for the OTPF. “The nearly two million Ohioans who are still affected by this deadly addiction need and deserve OTPF’s services, which are proven to be up to four times more effective than quitting cold turkey.”

Tobacco use is the leading cause of preventable death in Ohio. According to OTPF, its programs have been proven effective, helping decrease tobacco use by more than 40 percent among youth and nearly 15 percent among adults – rates significantly better than national averages. According to Rummel, research shows states that have diverted funds from tobacco prevention saw tobacco use rates skyrocket almost immediately.

Each year, the OTPF stated Ohio spends more than $4.5 billion tax dollars to provide health care for people suffering from tobacco-related illnesses.  According to the American Legacy Foundation, $1 spent on tobacco prevention and cessation programs saves at least $2 in state-funded health care costs – a 200 percent return and more money in taxpayers’ pockets.

“The result will actually increase the burden on Ohio’s taxpayers,” said Rummel. “Raiding OTPF’s endowment will jeopardize health services that are saving Ohioans’ lives right now.

“More than 110,000 Ohioans have called the Ohio Tobacco QUIT LINE – more than any other state – to end their tobacco addiction. More than 70 percent of the two million Ohio tobacco users say they want to quit and need help doing so.”

Unlike other public health issues, tobacco control is unique in that it has a formidable opponent in the tobacco industry, which spends more than $724 million a year on marketing in Ohio alone.

“Ohio’s tobacco problem isn’t solved. Even though tobacco use among adults has declined, Ohio’s adult smoking rate is still higher than the national average,” said Rummel. “This move would create open season for the tobacco industry to sell its products to our children and, as a result, thousands of Ohioans will be victimized and die prematurely.”

Additionally, Rummel said this redirection of funds could eliminate the jobs of approximately 400 health professionals working on the front lines of tobacco control in Ohio. He says this is counter to the goal of the stimulus program, as unhealthy populations are not attractive for job growth.

“One life lost to tobacco is too many, let alone the roughly 19,000 Ohioans who die every year from smoking-related illnesses,” he said. “Are we really willing to trade the life of an Ohioan for a building or a job? We believe there is a better way to continue saving lives and help the Ohio economy.”

Strickland’s stimulus package, announced earlier this spring, is designed to make major investments in workforce, infrastructure and new and emerging industries to spur job creation in Ohio. The $1.57 billion package is being funded, in addition to the OTPF money, by a combination of bond sales, existing revenue and other sources.

“This bipartisan jobs stimulus plan will create jobs, make us a leader in emerging industries and establish the foundation for long-term growth and prosperity in Ohio,” Strickland said.

Details of the new and emerging industries portion of the bipartisan economic package include $50 million for biobased products to help support and grow an industry aimed at producing polymers, plastics and other crucial modern materials out of Ohio-grown crops.

Nearly $150 million is earmarked for advanced renewable energy to create new jobs, including wind, solar and clean coal, and another $100 million for biomedical industries.

The infrastructure portion of the package includes $200 million for Clean Ohio Conservation to fund the preservation of farmland and green space, another $200 million for Clean Ohio Revitalization, $100 million for logistics and distribution, $200 million to help build local infrastructure and $120 million in historic preservation tax credits.

The package also includes $250 million for a higher education workforce initiative aimed at keeping more Ohioans in the state by linking them with good internships, cooperative education programs and jobs while they earn their degrees.

This farm news was published in the May 21, 2008 issue of the Farm World, serving Indiana, Ohio, Illinois, Kentucky, Michigan and Tennessee.

5/21/2008