The CSAC Health and Human Services Policy Committee gave a nod to
the new tobacco tax and extension of one of the Proposition 30
taxes for education and health care on Monday, unanimously voting
to forward a recommendation of support on Propositions 55 and 56
to the CSAC Executive Committee.
The Committee was primarily focused on both measures due to their
potential to provide revenue for the state Medi-Cal program, fund
education, and improve public health. Proposition 55 would extend
only the personal income tax on high-income filers portion of
Proposition 30 until 2030. This funding would continue to fund
K-12 education and community colleges, and up to $2 billion could
be directed toward emergency and hospital Medi-Cal services,
including for county public hospitals.
Proposition 56 would add $2 per pack for cigarettes, and also tax
vapor or e-cigarette tobacco products. Because such a steep tax
increase is likely to reduce consumption – one of the goals of
the measure – any revenue raised would first be used to backfill
any potential losses for state and local First 5 (Proposition 10)
programs. Remaining revenue would be used to fund some Medi-Cal
costs, tobacco use prevention, research and law enforcement.
The CSAC Executive Committee will hear from proponents and
opponents of each measure during their meeting on August 4.
Should the EC accept the policy committee’s recommendation of
support, the decision will next move to the CSAC Board of
Directors for consideration at their September 1 meeting.
