Childhood-welfare agency worries proposed cigarette tax increase would reduce funding

SACRAMENTO â€”  Officials at a state childhood-welfare agency funded mostly through state cigarette taxes expressed concern Thursday that proposed legislation for a $2-a-pack tax increase could ultimately cause funding to drop.

The agency, First 5 California, already is searching for new sources to replace a decline in tobacco tax revenue, the result of fewer Californians smoking and lower cigarette sales.

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FOR THE RECORD: In the July 24 California section, an article about possible effects of a proposed state cigarette tax identified Erin Gabel as the executive director of First 5 California. She is deputy director of First 5 California’s external and governmental affairs division.

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Almost all revenue raised by the proposed tax would go toward education about tobacco, prevention efforts, tobacco-related healthcare and tobacco-law enforcement, largely eclipsing First 5.

George Halvorson, First 5 California chairman, said the agency should be among the beneficiaries of any new tax revenue from such sources as a tax increase on tobacco or a tax on e-cigarettes.

“This is the opportune time to get involved,� Halvorson said at the group’s meeting in Sacramento on Thursday. “We need to argue that point and try to be included.�

The agency also is exploring various proposed ballot measures to legalize the recreational use of marijuana as a potential funding source. Its revenue from the cigarette tax fell from $555.4 million in the 2008-09 fiscal year to $460.6 million in 2013-14 fiscal year.

California currently charges 87 cents a pack in taxes, after the voter-approved law that created First 5 added 50 cents a pack to support early childhood development programs.

A portion of the money covers collection costs and funds breast cancer research and other programs. The rest goes to First 5 to pay for an anti-smoking campaign as well as for education, child-care training, and to early childhood intervention programs.

A coalition called “Saves Lives California� — which includes the California Medical Assn., American Lung Assn. in California and the American Cancer Society Action Network — supports pending proposals for an increased tax. The coalition also is preparing a ballot initiative to raise tobacco taxes in case the bill fails.

First 5 would collect a small portion of any new tax money to make up for a drop in its revenue, because higher cigarette taxes could be expected to further lower tobacco sales.

Erin Gabel, executive director of First 5 California, said there appears to be “a window of receptivity� with the proposals’ supporters to provide more money to the agency to replace any lost revenue. But, she said, but it is “a huge uphill climb.�

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