States take their share on every pack
Jump to full article: Lexington (KY) Herald-Leader, 2009-11-16
Author: Beth Musgrave
Intro: When legislators return to Frankfort in January for a new legislative session, they face a daunting task: how to pay for the state's essential services while revenue continues to decline.
Although official estimates won't be released until next month, initial projections show a $161 million shortfall for this fiscal year, which began in July. And the picture for the next two years doesn't get much better. There could be as much as a $1 billion shortfall for the next two years if the state keeps spending at its current rate of $9.1 billion a year.
While speaking to business leaders in Louisville last week, Gov. Steve Beshear said he has not ruled out any solution -- including another increase in the cigarette tax. . . .
Yet legislators and even Beshear said last week a cigarette tax increase is unlikely to be approved during the upcoming legislative session, despite the known health benefits and the state's desperate need for cash.
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