The proposal to expand high-quality early learning opportunities with a 94¢ increase in the federal cigarette tax would produce the following benefits in Indiana.
Projected Benefits in Indiana from Increased Federal Funding for Early EducationThe proposed early learning initiative would benefit many Indiana children who currently lack the opportunity to participate in high-quality preschool. Currently, 10% of the state’s three-year-olds and 15% of the state’s four-year-olds are enrolled in publicly funded preschool (state preschool, preschool special education, or Head Start). The initiative would initially focus on children in low- and moderate-income families. In Indiana, 256,888 children under age six (50.7%) live in households with incomes below 200% of the federal poverty level. The proposed early learning initiative could result in the following additional federal funding for and increased participation in preschool and voluntary home visiting in Indiana in the first year alone:
Additional funds provided to the state for preschool: $62.40 millionAdditional children from low- and moderate-income families able to participate in preschool: 7,623Additional funds provided to the state for expanded voluntary home visiting program: $8.50 millionNumber of low-income women who give birth each year; these women and their children may benefit from voluntary home visiting: 25,816
In subsequent years, the funding and the benefits will be even larger, because the national funding for the initiative is $75.00 billion over ten years for preschool, only $2.74 billion of which would be provided to states in the first year, and $15.00 billion over ten years for home visiting, only $433.40 million of which would be provided to states in the first year.
Projected Benefits in Indiana from a 94¢ Federal Cigarette Excise Tax IncreaseEach year, smoking kills 9,700 Indiana residents and costs the state $2.08 billion in health care expenditures. In addition, 32,700 of Indiana youth try smoking for the first time each year. Increasing the federal excise tax on cigarettes would reduce the toll of tobacco in Indiana, including the following public health benefits:
Kids alive today prevented from becoming addicted adult smokers: 55,000Current adult smokers who would quit in the first year: 46,300Reduction in births affected by smoking over the next 10 years: 19,800Residents saved from future premature smoking-caused death: 30,50010-year health care cost savings from fewer smoking-caused lung cancercases, heart attacks & strokes, and smoking-affected pregnancies & births: $109.42 millionLong-term health care cost savings from adult and youth smoking declines: $1.95 billion