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Ballot Initiatives Would Raise Cigarette Tax to Aid Health Programs

March 06, 2002
By: Brian Connolly
State Capital Bureau

JEFFERSON CITY - With lawmakers scrambling to fund existing programs they say are essential, a statewide coalition is turning to cigarette taxes to help cash-strapped health programs.

A Jefferson City attorney on Friday filed ballot initiatives on behalf of Citizens for a Healthy Missouri, a coalition consisting of the Missouri Hospital Association, Civic Council of Kansas City, Civic Progress in St. Louis, and the St. Louis Regional Chamber and Growth Association.

Eight different initiatives were filed, with increases ranging from 50 to 55 cents per pack of cigarettes and slight variations in distribution and use of the new revenue. After review from state officials, the coalition will select one of the initiatives, said Dwight Fine, senior vice president for governmental relations at the Missouri Hospital Association.

The coalition estimates that the tax, which would take effect Jan. 1, 2003, would generate about $300 million per year, Fine said. Depending on which initiative is selected, 42 or 43 percent of that money would go into an account earmarked for health and mental health programs.

Fine said the coalition was motivated by concern that continued funding of some health programs might be at risk. He said "something needed to be done to make sure there would be an ongoing funding stream for programs important to us."

Money from the tax would also go towards paying hospitals for trauma services, life science research, early childhood development, and smoking cessation programs.

Rep. Vicki Riback Wilson, D-Columbia, said that in general it is appropriate to look at raising cigarette taxes. She said with one of the nation's lowest taxes and highest incidences of teen smoking, the tax could have a health as well as financial impact on Missouri. That includes a long-term source of money for programs Gov. Bob Holden plans to finance next fiscal year with his controversial Rainy Day Fund proposal.

"Part of what I've been saying is that if we use the Rainy Day Fund it gives us the time to put these other mechanisms in place," Wilson said.

Wilson was among the legislators who heard Holden's chief of staff discuss a cigarette tax increase during a House Budget Committee hearing Tuesday. On Wednesday Holden said it wasn't his effort, but he would consider supporting the increase.

"In a broad sense I would sure look at it," Holden said. "We need additional revenue for health care, but I haven't seen anything yet that I can support."

Petitions to place an initiative on the November ballot would still have to be circulated and filed by May 5. Fine anticipated that would give the coalition about four and a half weeks to get the required number of signatures. The tight timetable is one factor that could cause the coalition to delay circulation until after November's election.

In addition to the ballot initiative, legislation for a 41 cent per pack tax has been introduced by Rep. Lana Ladd Baker, D-St. Louis County. The ballot initiatives use similar language, and both Baker and Fine indicated the coalition's efforts might not be necessary if the legislation progresses.

"It gives us an option," Baker said.

This is the second revenue generating initiative that could face voters in November. Initiatives to fund transportation projects through increases in the state sales tax were filed last month.