ND0423126

Title: Illinois Governor Proposes Higher Cigarette Excise Taxes

Description: Governor Pat Quinn?s plan to keep the state?s Medicaid program from collapsing is banking on a $1 increase in the state?s cigarette tax.

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CHICAGO ? Illinois Gov. Pat Quinn announced last week plans to increase the state?s current 98 cents per pack cigarette excise tax by $1 per pack as a means to close the $2.7 billion Medicaid budget gap, reports the Chicagoist.com.

A $1 per pack increase on cigarettes has passed twice in the state Senate in the past two years, but quickly died in the state House.

?I don?t think it?s something my caucus is going to like,? said State Rep. Patti Bellock of the cigarette tax increase.

Limiting Medicaid liability through revenues raised by a higher cigarette excise tax is a central component of the governor?s plan. Quinn?s website notes that the state?s Medicaid program is on the brink of collapse. The program, which provides health care to 2.7 million Illinois residents in need, will end this current fiscal year (though June 30) with $1.9 billion in unpaid bills. Unless action is taken to restructure Medicaid this session, the Civic Federation estimates $21 billion in unpaid Medicaid bills by 2017.

Content Subject: Operations

Formatted Article Date: April 23, 2012

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