From: John Ruoff < This e-mail address is being protected from spam bots, you need JavaScript enabled to view it >

The House of Representatives will take up H. 3567 (http://www.scstatehouse.net/sess117_2007-2008/bills/3567.htm) next week, probably on Wednesday. That bill raises the cigarette tax by 30 cents a pack to fund:

1. An increase in the eligibility level for the Medicaid Low Income Families program from 50 % of the federal poverty level to 100 %--up to $70 million annually.
2. Youth Smoking Prevention and Cessation Fund -- 5 % of revenues
3. One penny per pack to DHEC for the SUPERB Fund to pay for cleanup of leaking abandoned gasoline tanks.
4. $1 million dollars to the Department of Agriculture for research and promotion of healthy lifestyles with food grown in this State.

In addition the bill cuts the tax on groceries in half to 1 1/2 percent and requires tax stamps on cigarette packs to discourage smuggling and black market cigarettes. It creates a Health Care Trust Fund and a reserve fund at HHS. SCHIP (children's health insurance) program eligibility is proposed to rise to 200 % of the FPL from the current 150 %, but through a budget proviso, not through cigarette tax funding. The Senate Finance Committee budget proposes to do that with recurring dollars. The House budget did it with nonrecurring dollars. Senators should be urged to adopt the SCHIP proviso. *Although it was a great victory getting the cigarette tax bill out of House Ways & Means, we face a tough fight in the House next week. We will only be successful if advocates for Medicaid and for the cigarette tax contact their House members in the next few days to let them know that you want them to support the cigarette tax increase to fund health care.* -- John C. Ruoff, Ph.D. Research Director South Carolina Fair Share 2001 Assembly Street - Suite 107 P.O. Box 8888 Columbia, SC 29202 803-603-3224

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