Information on Prop EE funding to STEPP Grantees - June 27, 2024

We are planning for the distribution of Prop EE funding! Background: In 2020, Colorado voters passed Proposition EE, which increased taxes on cigarettes and other tobacco products and created a new tax on nicotine products, including vaping products. Current projections show that Prop EE is generating approximately an additional $20 million/year for the STEPP program. We are currently planning objective, transparent, and equitable contract increases that are consistent for grantees within their respective funding categories. All STEPP grantees will receive contract increases effective January-February 2025 (mid-year through the second year of this funding cycle).

• Local Health Agencies receiving core funding: We are partnering with CALPHO to discuss increases to the current core funding formula. We will receive feedback from CALPHO on June 20 regarding the increases and revised formula.
• All other STEPP grantees: We are currently planning for 10% increases to your base contracts.
• Some grantees will be eligible for additional funding above and beyond the base increase. This additional funding will be for work based on the original RFA strategies. In the coming weeks, these grantees will receive additional information on the process for developing and submitting those requests within the parameters of their current scope of work.
• Grantees currently on State Price Agreement: We will have a separate mechanism for discussing additional funding based on the status and timeline of the State Price Agreement process.

What is happening next: Your PO will send detailed processes, timelines, and information specific to your organization in late June. Your PO will be your main point of contact for all questions and guidance as we proceed. The July 19 Tobacco Review Committee (TRC) meeting will have dedicated time for this information to be presented in additional detail and to be discussed. We expect the August 16 TRC meeting to include a funding vote. Please expect to work with your POs in late summer/fall on the documentation needed to add funding to contracts. Our goal is for contract increases to be effective January-February 2025 (mid-year through the second year of this funding cycle). We are excited about the impact this funding will have across your communities and in service to our North Star: To Advance Health and Racial Equity for a Stronger Colorado! Please contact your PO with any questions. Thank you for all the work you do to make Colorado a healthier place.