Gazette opinion: Take initiative to keep Montanans healthy
The tobacco tax and health care initiative on the November ballot offers Montana voters a workable solution to the problem of sustaining care for our neighbors in need — particularly U.S. military veterans, senior citizens, disabled persons and low-income workers.
To keep providing the publicly funded services now in place, and to boost funding for veterans, in-home care and tobacco prevention, Initiative 185 proposes to increase the state tax on cigarettes and other tobacco products. It would expand the definition of tobacco products to including e-cigarettes and electronic vaping products, but not the hardware used with them.
The Montana state budget office analyzed I-185 and prepared a 13-page fiscal note that concludes: “This proposed initiative is expected to increase state revenue by approximately $73 million per fiscal year once the new tax rates are in place.”
About 43 million packs of 20 cigarettes were sold in Montana in fiscal year 2016. The state now collects a tax of $1.70 per pack, which I-185 would increase to $3.70 per pack. That $2 per pack boost in cigarette taxes would generate the bulk of new revenue from I-185. The state budget office projects that fewer cigarettes would be sold with the higher tax, but the additional $2 per pack tax would still result in the projected revenue increase.
By approving I-185, voters will continue the HELP Act, which otherwise is set to expire on June 30, 2019. This state law extended Medicaid to all very low-income Montanans, regardless of age. Nearly 100,000 Montanans now are covered by Medicaid through the HELP Act. This includes parents of children covered by the Children’s Health Insurance Plan and low-income workers whose jobs don’t provide affordable private health insurance.
Opposition to I-185 is funded by big tobacco companies. Montanans Against Tax Hikes, a political committee that reported contributions of more than $1 million from tobacco companies as of July 27, has run television and radio commercials that misrepresent the initiative.
In fact, the only tax increase resulting from I-185 would be for people who purchase tobacco or e-cigarette products.\
Present law provides how the existing tobacco tax revenue is to be distributed. I-185 would maintain that distribution, but directs increased revenues to specific health needs: ongoing funds for the HELP Act, support for the other Medicaid programs that cover about 150,000 Montana children, senior citizens and people with disabilities; home and community services for seniors and disabled persons, veterans suicide prevention and tobacco use prevention.
Voter approval of I-185 won’t direct new tobacco tax money to the general fund. However, without I-185 and continuation of the HELP Act, the state general fund will have higher expenses. Since 2016 when the HELP Act took effect, the federal government has paid some costs of inmate health care that previously were 100 percent state expenses. Some Montanans now covered by the HELP Act would still qualify for Medicaid if the law expires, but they would revert to traditional Medicaid programs that require the state to pay a much higher share of the costs.
Substantial state budget cuts over the past year in health and human services demonstrated how difficult it is for our state legislature to raise any tax for any reason — and how the consequences affect young, old, sick, disabled and needy individuals in every Montana community.
I-185 would prevent low-income Montanans from losing health care they rely on now and it would improve care for our veterans, seniors and disabled citizens.