SALT LAKE CITY -- As state lawmakers spent Tuesday considering deeper cuts to the current state budget, two legislators from the Top of Utah offered bills to raise more cash for the coffers by increasing taxes on tobacco products.
State Sen. Allen Christensen, R-North Ogden, announced he filed a bill that could add $50 million a year to state revenue by increasing the cigarette tax by $1.30 a pack to $2.
"It costs the state a tremendous amount in public finances, in public health ... something must be done about it," Christensen said about tobacco use in Utah.
The legislation comes as lawmakers heard testimony from state departments and agency leaders who have been asked to detail what would happen if another 1 percentage point in spending was lopped off their 2010 budget, which ends in July.
That would be on top of the 3 percent Gov. Gary Herbert ordered cut last month to make up for a $700 million budget shortfall.
Legislative leaders believe more cuts ought to be considered than does Herbert, so they will spend time exploring not only a deeper reduction this year, but 5 percent in cuts for the next two-year budget cycle.
"This is not without a loss of services," said Lisa- Michele Church, director of the Utah Human Services Department.
Church told members of the Health and Human Services Appropriations subcommittee Tuesday morning that a 4 percent cut would mean larger-scale layoffs and unfilled staff positions, plus program cuts in such areas as child and family services and disability support.
The state's human services department has 4,000 employees statewide.
Dr. David Sundwall, director of the Utah Department of Health, said he has already ordered furloughs for the people under his control, and more cuts mean layoffs as well.
"This is problematic for a lot of reasons," Sundwall said.
Senate President Michael Waddoups understood the extra percentage point and larger 2010-11 cut would have serious consequences.
"We must see if we can be more efficient," said Waddoups, who predicted the 4 percent cut would likely be enacted when lawmakers go into full session later this month.
After the committee hearings, Christensen separately announced his tobacco tax bill.
With him was state Rep. Paul Ray, a Clinton Republican who already introduced a similar bill.
Ray said they will likely combine or amend the bills into one.
Both lawmakers believe the health issues with tobacco use are more important than just bringing in more tax dollars.
"It will stop more people from smoking," said Ray, who expects a fight from tobacco companies over the legislation, which is similar to a bill introduced in the last session.
Because of budget cuts and the need to boost revenues, Waddoups said, the tobacco tax increase has more of a possibility of passing this legislative session, which starts Jan. 25.
Comments