The first source of revenue for AB 75 Project programs was Prop 99, the Tobacco Tax and Health Protection Act of 1988, an initiative approved by California voters in November 1988. This state law authorizes a tax of 25 cents per pack of cigarettes, or similar amount on other tobacco product items.
As anti-tobacco education programs become more effective, fewer people smoke or use tobacco products thereby reducing the amount of taxes collected. In addition, the State has, over time, diverted Prop 99 funding for local heath services to its own health programs.
Currently AB 75 is funded by the Maddy Emergency Medical Services (EMS) Fund, created by the Legislature in SB 12 and SB 1773. This state law mandates a surcharge for every $10 of traffic fines collected for moving violations. A portion of the surcharge is deposited into the local EMS Fund and used for the reimbursement of emergency medical services provided to persons unable to pay for their care. The amount of SB 12/1773 revenues has fluctuated from year to year depending upon local enforcement of traffic violations and collection of traffic fines.
The third revenue source is the local general fund dollars first allocated in FY 1999-00 to back-fill State CHIP allocation reductions. These funds must be used for direct services and not for administration. The amount of local general fund revenues has remained unchanged since its first allocation.