AB 75

Funding Sources

1. The first source of revenue for AB 75 Project programs is 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, and the tax revenues are deposited in various accounts to fund education, research, health, and welfare programs. Indigent medical services in San Francisco are funded through the State’s California Healthcare for Indigents Program (CHIP).
   
   Prop 99 Tobacco Tax funds are a diminishing source of revenue. 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. In the Fall of 2000, the Legislature created, through SB 2132 (Dunn/Perata), the Emergency Medical Services Appropriation (EMSA) to guarantee that a certain portion of Prop 99 dollars would continue to be used to fund emergency room physician services at the local level.
   
   It is estimated that in FY 2004-05 CHIP funding for San Francisco hospital and physician services will remain about the same as in the prior year. Funding allocations are made annually as part of the State’s budget process.
    
2. A second source of revenue is the Maddy Emergency Medical Services (EMS) Fund, created by the Legislature in SB 12/612 (Chapter 1240, Statutes of 1987), and set out in Government Code 7600 and Health and Safety Code Part I, Division 2.5, Section 1797.98. This state law mandates a $7 surcharge for every $10 of traffic fines collected for criminal offenses. 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. This amount of SB 12 revenues has fluctuated from year to year depending upon local enforcement of traffic violations and collection of traffic fines.
    
3. The third revenue source are 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 remains unchanged since its first allocation and will continue at the same level for FY 2004-05