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IL Cigarette Tax Picks Up Support

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Tuesday, May 22, 2012   

SPRINGFIELD, Ill. - Illinois lawmakers have less than two weeks in this session to do something about approximately $8 billion in overdue bills. The Democrats and Governor Pat Quinn have proposed a dollar-a-pack hike in the cigarette tax to offset painful cuts. The idea seems to be picking up steam.

Late last week, Republican state comptroller Judy Barr Topinka announced that she would support the cigarette tax if it's combined with spending cuts, and the latest poll finds 74 percent of Illinoisans would support it as well.

Kathy Ryg, president of Voices for Illinois Children, has analyzed the numbers.

"There would be a $50 million savings in Medicaid in the first year. That's a very sound policy and budget decision."

Ryg says the money brought in by the cigarette tax, when it's used for Medicaid, would be matched by federal dollars. Overall, the cigarette tax is expected to bring in around $700 million.

Quinn is looking to cut $2.7 billion from the Medicaid budget. If nothing is done, Medicaid bills are expected to hit $21 billion in five years.

Ryg says state lawmakers need to think about the long-term effect of cuts. For example, she says, the Teen Reach program that keeps pupils busy after school has been cut in half over the last three years and if proposed cuts for next year are passed, thousands of young people who will be left out may wind up costing the state a whole lot more.

"Those programs cost an average of $700 a youth per year. But if those kids engage in risky behavior and end up in the juvenile justice system, that cost is $70,000 a year."

To opponents who that say raising taxes on cigarettes would only encourage smokers to buy cigarettes elsewhere, Ryg answers:

"But it's a very sound policy position, by reducing the number of Illinois kids who would become smokers, and the Illinois Medicaid costs for smoking-related costs."

The American Lung Association of Illinois says that smoking-related illnesses cost nearly $2 billion a year. It estimates that a dollar-a-pack increase in the cigarette tax would result in more than 59,000 Illinois adults quitting and would discourage nearly 80,000 young people from ever starting.

In addition to the cigarette tax hike, Senate Democrats propose cutting 4 percent from most state agencies. Some Republican leaders say that's not enough.


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