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Thursday, 4/26/2001
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City

Conflict surrounds cigarette tax hike

By Heather Mangold
City Editor

A 50 cent increase in the Indiana cigarette tax is not receiving good feedback.

Rep. Sheila Klinker, D-27th, said while she supports Gov. O'Bannon's budget proposal, which includes a 50 cent cigarette tax increase for additional funding for education, voters have been expressing concern.

"What we're hearing in our caucus is that people are not willing to vote for the full 50 cents," said Klinker. "And I hear that is the story from the Republicans too."

Klinker said that voters might support the proposal if the tax increase was not so great.

She said that the proposal has definitely sparked public interest.

"Somebody is getting the message out pretty well and that's good," said Klinker.

Terry Strueh, vice president of state relations at Purdue, said he agrees that lawmakers are not enthusiastic about spending 50 cents more on each pack of cigarettes Hoosiers buy.

"The conference committees met (Tuesday) afternoon and not much support was expressed for the governor's cigarette tax," Strueh said.

He said that House Ways and Means Committee chairman Patrick Bauer, D-South Bend, proposed that the caucuses consider using gaming revenues for an additional means of funding for Indiana.

Strueh said the caucuses agreed that they would take the idea back to their colleagues. A response from the caucuses is expected later this week.

The conference committees reviewing all versions of Indiana's fiscal budget have until Sunday to resolve differences and come up with a final version of the budget.

Klinker said she was not sure if the committees would meet their deadline but said she was optimistic.

"Sometimes things can come together really, really quickly," said Klinker. "This one I can't tell you for sure, but I think they are getting closer day by day."

 

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CITY DESK PHONE:
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City editor:
Heather Mangold

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Purdue Exponent 2001