SALT LAKE CITY -- As state lawmakers draft the next two-year budget, business leaders are calling for both increased taxes on cigarettes and increasing funding for all of education.
Leaders from the Salt Lake Chamber, including Bountiful resident and Chamber CEO Lane Beattie, at a news conference Wednesday urged lawmakers to use an additional $50 million of the rainy day fund to fill gaps in the 2010-11 state budget.
"Today it's raining," said Beattie, who advocates state savings be used instead of other tax changes that could bring in revenue.
The Chamber, which represents 5,700 businesses, including some from Northern Utah, makes its position known as House and Senate members struggle with a potential 5 percent cut laid out by leaders for many state departments and agencies.
"Increasing the tobacco tax has overwhelming support from both the public and the business community," said Randy Shumway, Cicero Group president and a Davis County resident.
The Chamber position echoes the effort of two Top of Utah lawmakers, Sen Allen Christensen, R-Ogden, and Rep. Paul Ray, R-Clinton, both of whom have proposed legislation to increase taxes on cigarettes.
"There are still a lot of holes to be plugged. That money is needed," said Ray, whose bill calls for a larger increase than the Chamber advocates. But some in the GOP Senate leadership doubt a tobacco tax increase will prosper in the session, at least at this point.
"There is not a lot of support for it," said Wayne Niederhauser, R-Sandy.
Two of the other unknowns are how much money will go to higher education, and whether lawmakers will increase money for the 11,000 new students expected to be added to the K-12 state education system later this year.
Gov. Gary Herbert hopes to at least maintain the same amount of dollars available to public education as in the previous budget. Herbert has said he is not in favor of additional taxes.
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