Thursday, February 20, 2003

A coalition of public health groups yesterday vowed to campaign against Gov. James E. McGreevey's proposed 40-cent tax increase on a pack of cigarettes if he doesn't rescind his proposed cuts to anti-smoking programs.

At the same time, the groups said they would support an even bigger tax increase -- half a buck per pack -- if the extra dime was set aside for anti-tobacco efforts.

The health groups are angry at McGreevey for slashing two-thirds of the $30 million budget for programs aimed at keeping kids from getting into the habit of smoking, at the same time he is proposing to increase cigarette taxes and borrow more than $1 billion against future proceeds from a settlement with the tobacco industry.

"It's the first time in our history we are opposing a tobacco tax increase," said Larry Downs, director of New Jersey Breathes, representing about 50 public health organizations such as the American Cancer Society and the New Jersey Medical Society. "But raising the tax 40 cents merely for the purpose of balancing the budget is not a proposition we can support."

In a teleconference with reporters yesterday, the group said it will recommend McGreevey and the Legislature instead raise tobacco taxes by 50 cents and dedicate the 10 extra cents to anti-tobacco programs. The group says this would generate $32 million.

The health advocates also said restoring the tax on cigars would raise another $7.8 million, and raising the annual retail license fee to sell cigarettes by $100 would bring in another $2 million.

However, Micah Rasmussen, a spokesman for McGreevey, said the governor does not want to raise additional sources of revenue beyond the tax and fee increases he already included in his budget proposal.

"At some point, the question has to stop being, 'How do we generate more revenue'? It has to be, 'How do we live within our means'?" Rasmussen said. The governor has said his spending plan closes an estimated $5 billion budget shortfall.

The anti-smoking advocates said the additional cash is needed to sustain programs such as the "Not for Sale" ad campaign aimed at youth, and a hotline, Internet site and walk-in centers that help people live tobacco-free.

Downs said the state's efforts have paid off, particularly among kids. In 2001, just 6.1 percent of middle school students were smokers -- a 42 percent drop from two years earlier, and far below the national average of 12 percent. Smoking dropped 11 percent among high school students in New Jersey to 24.5 percent, putting them slightly below the national average of 26 percent.

William V. Corr, the executive vice president for the national and privately funded Campaign for Tobacco Free Kids, said McGreevey's plan to slash anti-tobacco programs is short-sighted. He said about $2.5 billion in public and private funds is spent each year treating tobacco-related illnesses.

"New Jersey will pay a high price if it cuts funding for its tobacco control program," Corr said. "More kids will become addicted to tobacco, more lives will be lost, and taxpayers will pay more to treat smoking-caused disease."