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Cigarette tax plan would benefit schools
February 2, 2010
Cigarette tax plan would benefit schools
Education chief Rex wants smokers to pay much more
By GINA SMITH
Should smokers pay to keep S.C. teachers in the classroom?
State Superintendent of Education and gubernatorial candidate Jim Rex thinks so. The Fairfield County Democrat is working this week to build a statewide coalition of educators and health care advocates to pressure lawmakers into increasing the state's cigarette tax to the national average of $1.34.
That's a $1.27 increase from South Carolina's current 7 cents-a-pack tax, the lowest in the nation. An increase that large could raise more than $200 million, split roughly evenly between health care and education.
"This (proposal) is not inspired by my candidacy for governor," Rex said. "If anything, it's probably risky politically. But as we've looked at these cuts to education, as we've looked at the consequences, this just seems the time to do it."
Rex's plan calls for:
- The first 50 cents of the increase to help pay for the state's health care costs and smoking cessation programs. Lawmakers in both chambers approved a 57-cent increase last session, but Republican Gov. Mark Sanford vetoed it.
- The remainder of the increase would go toward public education. Specifically, Rex said the money could be used next year to keep teachers in the classrooms instead of taking five days of unpaid leave as is under consideration by House budget writers. That move would save the state roughly $100 million.
Lawmakers are trying to figure out how to fill a more than $500 million hole in the state's budget for its next fiscal year, which starts July 1. Public education makes up 38 percent of that budget and is a likely target for cuts.
Education groups who met with Rex on Friday say they're considering the plan.
"We think it certainly has merit, and we're looking at any and all outlets for trying to raise revenue," said Debbie Elmore, spokeswoman for the S.C. School Boards Association. "However, we're going to have to study this a little more."
Kathy Maness, director of the Palmetto State Teachers Association, said she backs the plan.
"That's exciting outside-of-the-box thinking. We're in a bad situation right now," said Maness, director of the organization of 6,300 teachers.
However, some lawmakers, including state Rep. Dan Cooper, R-Anderson, head of the House's budget writing committee, are skeptical.
"You're talking about using a declining source of revenue to fund education. Not a good idea. The goal is to get fewer people to smoke, so this pot of money is going to get smaller over time," Cooper said.
"The (cigarette tax) increase is not about revenue. It's supposedly about getting kids to stop smoking," Cooper said.
A University of Chicago study showed every 10 percent increase in cigarette prices yields a 7 percent decline in youth smoking.
Rex says that once the budget crisis subsides, revenue from the tax increase should go solely toward health care.
"I would not like to see education funding long-term dependent on this revenue source. Long term, we need to restructure the way we fund education." Rex said. "But short term, because of the budget crisis we find ourselves in, we need to split it between the immediate needs of health care and the immediate needs of education."
Anti-smoking groups, including the S.C. Tobacco Collaborative, said they welcome Rex and educators as new partners in their effort to raise the tax. This is the 10th year the collaborative - made up of 12 health organizations, including the S.C. chapters of the American Cancer Society and the American Lung Association - have fought to raise the tax.
"Certainly, health care and education are our state's biggest needs. It's exciting to hear someone talking creatively about meeting those needs," said Kelly Davis, collaborative spokeswoman.
Ben Fox, Sanford's spokesman, said the governor supports a cigarette tax. But the same conditions apply as last year.
"We definitely support a cigarette tax increase and that revenue can go toward health care, education, other shortfalls," Fox said. "The only condition we put on it is that there be a corresponding tax decrease somewhere like the personal income tax or corporate income tax."
Reach Smith at (803) 771-8658 or via email at gnsmith@thestate.com
