HomeMy WebLinkAboutMINUTES - 08121997 - SD3 SD 3
TO: BOARD OF SUPERVISORS Contra
• i l
FIiOM: SUPERVISOR DONNA GERBER Costa
GATE: AUGUST 12, 1997 .;T' Count
SUBJECT: SUPPORT FOR ASSEMBLYMAN TOM TORLAKSON' S PROPOSED LEGISLATION TO
RAISE TAX ON TOBACCO TO FUND HEALTH CARE PROGRAMS
SPECIFIC REQUEST(S)OR RECOMMENOATION(S)a SACKOROUND AND JUSTIFICATION
Recommendation:
That the Board of Supervisors of Contra Costa County supports Assemblyman Tom
Torlakson's proposed legislation to raise the state's tobacco tax. The increase would be
used to fund health care programs such as MediCal, insurance for children, school
nurses, and breast cancer treatment, freeing up General Fund dollars currently used to
pay for these health programs.
Background:
The Field Institute, California Center for Health Improvement, conducted a survey in
November, 1996, which indicated 81% of Californians (89% of Contra Costa County
citizens) support a tobacco tax increase to pay for community health programs. By
freeing up General Fund dollars currently paying for health programs, a tobacco tax
increase, as proposed by Assemblyman Tom Torlakson, would make room in the
budget for the return of property taxes to local governments.
Additionally, according to recent studies, every 10% increase in cigarette prices causes
a 14% drop in teenage smoking: an 80 cent increase per pack could result in a 44.8%
drop in teenage smoking.
The public clearly supports this type of user-based tax increase to fund health-related
programs; and an increased tax on cigarettes may help achieve the goal of reducing the
number of teenagers who smoke. Contra Costa County's Health Services Director
should convey the Board of Supervisor's support to Assemblyman Torlakson for his
efforts in this regard.
CONTINUED ON ATTACHMENT: YES SIONATURE:
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF SOARD COMMITTEE
APPROVE OTHER
StONATURE(SI:
ACTION OF BOARD ON August 12, 1997 APPROVED AS RECOMMENDED X OTHER X
Please see Addendum (Attached) for a list of speakers and Board action.
VOTE OF SUPERVISORS
1 HEREBY CERTIFY THAT THIS IS A TRUE
_X UNANIMOUS(ASSENT r)i s t_ i AND CORRECT COPY OF AN ACTION TAKEN
AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD
ABSENT: ABSTAIN: CIF SUPERVISORS ON THE DATE SHOWN.
CC Health Services Director ATTESTED August 12, 1997
County Administrator LOR,CLERK OF THE BOARD OF
Supervisors
gZ
S AND COUNTY ApmfNRrRA R
M382 (10/88)
ristine Wampler
SD.3
ADDENDUM
Item SD.3
August 12, 1997
Supervisor Gerber introduced this item and then Chairman DeSaulnier invited the
public to comment on the issues.
The following persons addressed the Board:
Stacy Brandle, 3019 Phillips Court, Richmond;
Karen Raju, 2117 Sugertree Drive, Pittsburg;
Maria Saucedo, 816 El Pueblo Avenue, Pittsburg;
Gloria Omania, Assemblyman Torlakson's Office, 815 Estudillo Street,
Martinez;
Latoya Brown, 114 E. Santa Fe Avenue, Pittsburg;
Brandy Galloway, 811 Brown Street, #A, Martinez;
Cheng Saechin, 595 8th Street, Richmond;
Jim Becker, Center for Human Development, 3607 Timothy, Antioch;
and
Delene Bliss, Tobacco Prevention Project, 2121 N. California
Boulevard, Suite 220, Walnut Creek.
All persons desiring to speak having been heard, the Board members discussed the
issues and took the following action:
1. APPROVED the recommendation on the attached Board Order adopting a
position in support of Assemblyman Torlakson's proposed legislation to raise
the State's tobacco tax; and
2. REQUESTED that County staff monitor and report to the Board of Supervisors
on the status of the legislation.
STATE CAPITOL COMMITTEES: 3
P.O.BOX 942849
SACRAMENTO,CA 94249.0001 CHAIR,HOUSING&COMMUNITY
(916)445-7890 DEVELOPMENT
FAX(916)327-2999
815 ES O STREET „I � � ��` � 1'�' � MEMBER:
MARTINEZ,
CA 94553
BUDGET
(510)372-7990
FAX(510)372-0934 BUDGET SUBCOMMITTEE:
EDUCATION FINANCE
JOINT GOVERNMENT CENTER TOM TORLAKSON LOCAL GOVERNMENT
420 W.3RD STREET ASSEMBLYMEMBER,ELEVENTH DISTRICT-- "- TRANSPORTATION
ANTIOCH,CA 94509 - WATER,PARKS AND WILDLIFE
(510)778-5790-5174 CO-CHAIR:
.- RECD ED .
FAX(510)778-51nG
E-MAIL:Tom.Torlakson®assembly.ca.gov LOCAL GOVERNMENT CAUCUS
August 12, 1997 AUG 1 2 WT
CLEM �osTA 0>�oas
Supervisor Mark DeSaulnier, Chair
and Members of the Board of Supervisors
651 Pine Street
Martinez, CA 94553
Dear Supervisor DeSaulnier and Board Members:
The long overdue State Budget was adopted by the State Legislature last evening.
I was one of 15 members of the State Assembly who voted against the spending plan
because it does not include a promised return to local government of property tax
siphoned off by the state since 1992.
Our cities, counties and special districts are in desperate need of these funds to
provide essential services such as fire protection, libraries and parks. The Governor's
directive to repay the debt to the Public Employees Retirement System eliminated any
opportunity during this budget year for the state to pay what it owes local government.
As co-chair of the Assembly Local Government Caucus, I will continue to lead the fight
for the state to pay its debt to local government.
As part of this fight, I urge your support for my proposal to increase the state's
tobacco tax by 80 cents to help fill the $1.36 billion hole in the budget that has been
created by the repayment to Ca1PERS. The revenues raised would fund health care
programs such as Medi-Cal, insurance for children, school nurses, and breast cancer
treatment.
This tobacco tax increase would raise approximately $1.2 billion and free up
$630 million in General Fund monies that could be spent on other high priority programs
including property tax return to local government, public libraries, and after-school
programs.
Printed on Recycled Paper
- S I), 3
Supervisor Mark DeSaulnier
August 12, 1997
Page TWO
The public overwhelmingly supports increasing the tobacco tax. A November
1996 field poll found that 81% of Californians support a tobacco tax increase to pay for
community health programs. In Contra Costa County 89% support this tax increase and
77% support an increase even if it is not targeted for health programs.
The state currently spends approximately $632 million a year on tobacco-related
health care costs. The current tobacco tax does not generate sufficient revenue to pay for
the current annual tobacco-related costs to the state, nor does it cover the billions of
California taxpayers' dollars previously unreimbursed. The Attorney General's lawsuit
on behalf of our state is far from settled, and only covers the last three years' health care
costs.
An additional important benefit of increasing the tax is the resulting decline in
teen smoking. Two studies estimate that every 10% increase results in a 14% drop in
teen smoking. An 80 cent increase would result in a phenomenal 45% drop in teen
smoking. For this reason alone, we should increase the tobacco tax.
Given the widespread support for a tobacco tax increase, the billions of dollars in
health care costs borne by the state, and the opportunity to make significant progress in
reducing teen smoking, I believe the time is right for all of us to act on this proposal.
Sincerely,
Tom Torlakson
TT:gro
Attachments
STATE CAPITOL '� y y COMMITTEES: S D�
P.O.BOX 902809 r/� � 1�1
SACRAMENTO,CA 90209-0001Y .if�T.IL CHAIR,HOUSING 3 COMMUNITY
(916)445-7890 DEVELOPMENT
FAX(916)327-22999 'y�' �J'rIr {� 1�'
MEMBER:
815 ESTUDILLO STREET ` ...���✓✓✓
MARTINEZ. -7 90553 BUDGET
(510)372-2.09 BUDGci SUBCOMMITTEE:
FAX(510)372.0930
EDUCATION FINANCE
JOINT GOVERNMENT CENTER TOM TORLAKSON LOCAL GOVERNMENT
420 W.3RD STREET TRANSPORTATION
ANTIOCH.CA 945C9 ASSEMBLYMEMSER,ELEVENTH DISTRICT WATER.PARIS AND WILDLIFE
(510)778-5790
FAX(5 10)778-5174
CO-CHAIR:
E-MAIL:Tom.T0Aak50n®assemC
N.Ca. w 9 NEWS RELEASE LOCAL GOVERNMENT CAUCUS
FOR IMMEDIATE RELEASE: CONTACT: Julie Snyder (916) 445-7890
Wednesday, July 30, 1997 Gary Gartner (510) 372-7990
DEMOCRATS ADVANCE NEW OPTION TO RESOLVE BUDGET GRIDLOCK
TORLAKSON PROPOSES 80e TOBACCO TAX HIKE TO FUND
HEALTH CARE AND PROGRAMS THREATENED BY WILSON'S PERS DECISION
SACRAMENTO --Assemblyman Tom Torlakson (D-Antioch) today announced a proposal to
increase the state's tobacco tax by 80 cents in response to Governor Wilson's decision to repay
immediately the state's debt to the Public Employees' Retirement System (PERS), which created
a$1.36 billion hole in the budget. The increase would fund healthcare programs such as Medi-
Cal, insurance for children, school nurses, and breast cancer treatment. Torlakson was joined at a
Capitol news conference by Democratic Caucus Chair, Assemblyman Kevin Shelley (D-San
Francisco) and Assemblymembers Mike Honda(D-San Jose) and Grace Napolitano (D-Norwalk)
to announce the proposal, which is supported by more than 25 members of the Assembly.
"Since the Governor insists on repaying PERS this year, we need to find creative ways to meet
public needs," said Torlakson. "With public support for a tobacco tax increase running at 68%
even in California's most conservative counties, this budget-balancer makes complete sense. It
allows us to provide health care coverage for children and fund other high priority programs."
By freeing up General Fund dollars currently used to pay for health programs, the tobacco tax
increase would make room in the budget for the return of the property tax to local governments,
food stamps for legal immigrants, a state infrastructure bank, battered women's shelters, a
buy-out of the proposed fee increase at UCs and CSUs, and the Governor's coastal initiative, as
well as other programs. All these programs are on the Governor's list of potential cuts needed as
a result of the PERS pay back.
(more)
Printed on Recycled Paper ��_
Assemblyman Tom Torlakson
80-cent Tobacco Tax Increase
Page 2
A November 1996 Field poll found that 81% of Californians support increasing the tobacco tax to
pay for community health programs: 89% in Contra Costa County, 86% in San Diego and Santa
Clara Counties, 82% in Los Angeles County, 77% in Orange County, and 76% in Fresno County.
The same poll found widespread support for an increase even if it is not targeted for health
programs: 86% in Santa Clara County, 82% in Los Angeles County, 77% in Contra Costa and
Orange Counties, 73% in San Diego County, and 69% in Fresno County.
"The public clearly supports this type of user based tax increase, as well as the programs we propose
to fund with the revenues,"Torlakson said. "Additionally, increasing the tax will reduce the
number of teenagers who smoke -- a very important goal."
Torlakson noted that according to two studies, every 10% increase in cigarette prices causes a 14%
drop in teenage smoking; an 80 cents increase would result in a 44.8% drop in teenage smoking.
"Since 89% of new smokers start to smoke by age 18, this tobacco tax would have a huge impact on
reducing the number of people killed each year by smoking," Torlakson stated. "Tobacco burns
huge holes in the state of California's budget every year. This `tax relief measure relieves the
damage wreaked on the budget."
Torlakson added, "It is also a huge health investment plan to save thousands of lives and save
billions in preventable health costs. Medical costs and lost productivity cost the state over $7
billion per year. Taxpayers directly pick up the tab for$600 to $700 million every year of tobacco
related health costs."
"Tobacco has been sending California taxpayers big bills every year. It's time we send back the
bill," Torlakson concluded.
9999
SD,3
STATE CAPITOL y y COMMfTTEES:
P.O.BOX 942849
SACRAMENTO,CA 94249-6001 .i�.7+.1i CHAIR.HOUSING 8 COMMUNITY
(916)445-7890 DEVELOPMENT
• FAX(916)327-2999
815 ES O 3
MEMBER:
MARTINEZ.CA 9455CIT'afiflaritia �, ?slYTNrr
BUDGET
(5 0)372-7990 BUDGET SUBCOMMITTEE:
FAX(510)372-6934 _
JOINT GOVERNMENT CENTER TOM TORLAKSON LOCAL GOVERNMENT
420 W 3RD STREET ASSEMBLYMEMBER,ELEVENTH DISTRICT TRANSPCRTATION
ANTIOCH.CA 94509 WATER.PARKS AND WILDLIFE
(510)778-5790
FAX(510)778.5174 CO-CHAIR:
E•MAILTom.Torlakson®assemory.ca.gov LOCAL GOVERNMENT CAUCUS
TOBACCO TAX BUDGET BALANCER: 80¢ INCREASE
PROGRAM TAX REVENUE
Medi-Cal: For tax dollars spent on cancer and other tobacco-related
diseases (Frees up General Fund dollars) 37¢ $555 million
Children's and Family Health Care 22¢ $330 million
School Nurses 10¢ $150 million
Disproportionate Share Hospitals (Frees up General Fund dollars)
5¢ $75 million
Substance Abuse Prevention and Treatment 3¢ $45 million
Treatment of Breast Cancer(For women identified by the state's breast
cancer screening program) 3¢ $45 million
TOTAL 80¢ $12 billion
TORLAKSON PLAN FOR ALLOCATION OF $630 MILLION
IN GENERAL FUND MONIES FREED UP BY TOBACCO TAX INCREASE
Property tax return to local $220 million Battered Women's Shelters $ 5 million
government(ERAF)
Legal Immigrants Drug Court Expansion $ 2 million
(food stamps) $120 million
Resources $ 55 million Higher Education:
(coastal and other programs) Fee increase buy-out $ 50 million
Infrastructure Bank $ 50 million Cal Grants $ 15 million
COPS $ 40 million 10th Campus $ 7 million
CYA Camps and Ranches $ 25 million Housing:
Farmworker Housing Grants $ 7 million
After-school Programs $ 20 million Emergency Housing Grants $ 2 million
Public Libraries $ 10 million Housing Rehabilitation $ 1 million
Regional housing needs
mandate(Los Angeles) $ 750,000
TOTAL :S'630 million::
All of these programs, except after-school programs, are on the Governor's July 28, 1997 list of those that may
be cut as a result of his decision to immediately repay the full amount owed by the state to the Public
Employees' Retirement System (PERS).
Printed on Recycled Paper
FROM :RSSM TOM 7CRLF7KSCN 915 32 2959 1:97.07-30 12:37 :.994 P.04/04
i
Opinions about Proposed
Statewide Initiative to Increase
Cigarette Taxes from 37 Cents
to $ 1 . Per Pack by County
% oppose % favor
18% San Francisco 79%
22% San Mateo 78%
22% Orange 77%
22% Contra Costa 77
I
?'-% San Bernardino 77
22 To Sonoma 7617o
24% Ventura 74%
25% Los Angeles 73%
26% 73%San Diego
26% STATEWIDE AVERAGE 72
24% Santa Clara
72,17c
. 26% Alameda 71 57,
3o% F Kern 70%
29% 1 Fresno 69
30% 1 Mendocino 68%
32% Riverside 67%
31% Sacramento 66
34% S an Joaquin 65%
34% Solano 64
(Differences between ioc%and sum of percentages shown for each cowry equal proportion with no opinion.)
THE GELD IrISTLIZI'f Q3��,�s"���js CALIF.�RNIA CEYLER FOFL HE.3I.ZH LMPRoVE1iEYI' ' .
November 1996 ; 6
Opinions about Increasing State
Faxes on Tobacco Products
to Help Pay for Community
Health Programs -- by County
f
oppose % favor
10% Contra Costa 89%
San Francisco 88%
13% Santa Clara 361%
4
13% San Diego 86%
15% San Bernardino 85 %
16% San Mateo 84%
17% Ventura 82%
17%a Los Angeles 82%
18% Alameda 82
19°.To _�___� STATEWIDE AVERAGE 81%
20% Sonoma $0
23% Grange I ,I. 77°1a
21% Sacramento 77%
24% Fresno 76%
2417a Mendocino 74%
25 Solan 74%
27% Riverside 73%
27% 1 Kern 72°Ta
31% San Joaquin
30% j m
Tehaa 68%
i
4 (Differences berween Ic)o%and sums ofpercentages show+t far each coanry equai praporrian with no apinioR.)
' HE ��..'LD INS'1?T0.17c Sg&w%widc eraahie 31 CALI,FOMgIA CEN=IZ FOR HEALTH IMPROVEMl: R
ItJ'IE ..,.,,...,.. . ,,,
November 1996 ?.i
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