proposition 10 established a 50 cent-per-pack tax on tobacco products towards the healthy development of california's children from prenatal to age five. declining birth and smoking rates is causing first 5 la's revenue stream to decrease. first 5 faces decreasing funding due to declining sales of tobacco products and increased administrative fees assessed by the state board of equalization for the collection of tobacco taxes. additional funding declines are fore coming due to state cutbacks. eighty percent of the commission's resources is divided among california's 58 counties, to be spent according to local needs and priorities.