by Janice Francis-Smith The Journal Record 11/20/2006 OKLAHOMA CITY – Oklahoma has reached a historic point regarding the state of its citizens’ health, members of the Oklahoma Tobacco Settlement Endowment Trust Fund board of directors leaned Friday. For the first time, Oklahoma has more former smokers among its population than current smokers, who number about 600,000 people, said Doug Metheny from the state Health Department. Another first – the state’s smoking population has dropped below the 20-percent mark. As the success of smoking cessation programs increases, however, the state should examine how to make the most of the money invested in those programs, said James Wilbanks of the state treasurer’s office. Figures compiled from the Health Department combined with revenue reports from the Oklahoma Tax Commission show that Oklahoma’s tobacco tax increase yielded better results than similar measures undertaken by other states. On average, a 10-percent increase in the price of cigarettes results in a 4-percent decrease in consumption, said Metheny. Based on that estimate, an 8-percent decrease in cigarette consumption was expected in Oklahoma after the tobacco tax increase went into effect January 2005. Instead, Oklahoma has seen a 13-percent decrease in consumption, said Metheny. About 30,000 Oklahomans have quit smoking since the increase went into effect, and those who still smoke say they are lighting up less frequently. Examining the sales in neighboring states shows that Oklahomans did not simply make their cigarette purchases in other states – only Arkansas showed an increase in sales, and that increase was “a drop in the bucket compared to the numbers we were talking about,” he said. On the other hand, total cigarette tax collections are up by more than 240 percent. According to the Oklahoma Tax Commission, the state collected $56.3 million in cigarette tax revenue in the fiscal year that ended in June 2004 and $192.3 million in the fiscal year that ended June 2006. State Treasurer Scott Meacham’s office is recommending a slight alteration in the way it invests money received under the 1998 Master Settlement Agreement with tobacco companies, which is used to fund smoking cessation programs. Juggling the percentages invested in equity funds and bonds could increase the annual yield from 3.35 percent to 3.60 percent, said Wilbanks. That relatively small change could increase the amount of money available to spend on smoking cessation programs from $800,000 a year to $1 million a year, he said. Posted at 11/20/2006 09:51:00 AM