Tobacco.org

• State illegally took funds from anti-tobacco program 

State legislators and the governor acted illegally in taking $7 million from a 2006 tobacco-tax initiative to balance the state budget, the Arizona Supreme Court ruled Friday.

The justices rejected arguments that lawmakers are free to reallocate investment and interest income from the money raised by the tax as long as they do not touch the tax revenues themselves.

Justice Michael Ryan, writing for the unanimous court, said the legislators, and the governor who signed the measure taking the money, are wrong.

He said voters, in approving the 80-cent-a-pack hike in tobacco taxes for the First Things First program, specifically wanted all the proceeds earmarked to improve early childhood development. Ryan said the measure specifically gives the board charged with handing out the cash authority over any interest on funds received but not yet allocated.

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