State cigarette tax now proposed at 90 cents

SPRINGFIELD - Told Thursday that their 75-cent cigarette tax increase likely won't bring in as many millions as first predicted, Senate Democrats responded by adding another 15 cents to make it a 90-cent per pack hike.

If approved, it would raise the state's total tax to $1.88 per pack, 7th highest in the country. However, numerous other communities around the state add on their own taxes. Chicago tacks on 68 cents and Cook County adds another $2.

With Democratic support possibly wavering on the plan, Senate leaders reached out to DuPage County in hopes of gaining support from that county's Republican senators. The latest version would let DuPage and every other county in Illinois impose up to a $2-per-pack tax. Currently only Cook County can do that.

DuPage County Board Chairman Bob Schillerstrom has spent months lobbying for this, saying a $1 tax there would raise $25 million annually, enough to restore jobs and social service programs cut from the county budget.

"We have made a substantial number of cuts in the last year," Schillerstrom said. "It's important that we don't make any more cuts."

State lawmakers, meanwhile, want to use the state cigarette tax money to finance billions of dollars in school and road construction. Supporters say the tax could pay off nearly $4 billion in construction borrowing.

Anti-tobacco groups pegged the initial, 75-cent tax increase as raising more than $325 million. That plan cleared a Senate committee Wednesday. But state economic forecasters lowered that to $300 million.

Upon getting that news, combined with wavering Democratic support, backers of the tax increase added another 15-cent tax and reached out to Republicans for support.

There are 37 Democratic senators in the 59-member Senate and if they can agree, they can pass anything the want. But getting them to agree has often proven a challenge this session.

The 90-cent tax is projected by anti-smoking groups to raise $380 million annually. State forecasters say it'll be $350 million.

To appeal to Republicans, the Democratic sponsors added in the provision for DuPage and other counties and earmarked $60 million of the money for a new fund that would pay down the lingering state backlog of payments owed to doctors, nursing homes and others who care for those enrolled in state programs. The backlog currently tops $1 billion.

Although all Republicans voted against the plan in a Senate committee Thursday, the strategy is likely to work with the full Senate. State Sen. Dan Cronin, an Elmhurst Republican said he supports it and sponsors said at least two other DuPage senators are also supportive.

"On balance, I think it's the best a guy in the suburbs, a minority Republican could hope for," said Cronin.

There are, however, lingering concerns, primarily with how the tax money, if approved, is spent by the state. This deal says it's for construction of schools, roads and bridges.

But state Sen. John Cullerton, a Chicago Democrat sponsoring the tax increase, said ultimately its up to the legislative leaders and the governor to decide.

Asked if the purpose of the cigarette tax could be changed, Cullerton said, "Oh yeah, it definitely could."

The Senate could take up the cigarette tax as soon as today. Lawmakers, now nearly two months into an overtime session, are still struggling to piece together a state budget they can agree upon. That budget was due May 31.

If a deal isn't struck soon, or a temporary budget approved, state offices and programs could begin shutting down next month.