The New Hampshire House Ways and Means Committee has recommended a tobacco tax increase to help fund education.
New Hampshire Public Radio's Dan Gorenstein reports.
Earlier this week, the Committee was presented with a handful of tax options, including the tobacco plan.
A number of key House lawmakers want to increase education aid as the state reduces its share of the funding.
Current law removes so-called donor towns, and targets much of the aid to property poor communities.
But some worry that some 115 communities face a dramatic drop in aid beginning this fall.
Republican Majority Leader David Hess, urged his colleagues to consider what towns would do without additional state aid.
3:08 ... if they are going to experience a reduction of 50 million dollars in state grants, that money will only be made up in one way. And that's by increasing the local property tax. So my vote is not a question of this tax, or no tax. It's a question of which tax.
In order to guarantee towns next year receive 90% of this year's funding the state needed to secure about 30 million dollars in new revenues.
By a vote of 9-8 vote, the Committee supported a tobacco tax increase to make up that shortfall.
The measure would raise the tobacco tax by 12 cents from July 1 2004 through June 30, 2005.
The tax would then be reduced to six cents for the next year, and sunset in 2006.
Democrats voiced opposition for a number of reasons.
Some were concerned a new education aid proposal would only delay school districts from knowing their budgets.
Others pointed out that Governor Benson is on record saying he would veto the measure.
Democrats wondered, given that, what's the point behind the legislation.
Ways and Means Committee Chair Republican Norman Major says the Committee should worry only about the committee.
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That doesn't mean we shouldn't do our job. We still have a responsibility to do our job. And it's up to the governor to take what we've done and assess that. And he makes the decision whether he wants to live with those consequences.
But Democrats have concerns beyond the tobacco proposal.
Durham Representative Marjorie Smith says some House Democrats fear supporting a tax in an election year that Governor Benson will only veto could be used against the party.
Track 4
1:23 for us to support an increase in the tobacco tax, when the Governor has made clear he does not support any effort to do what we should do...it's futile for us to support this.
It's not clear who exactly will support this tax proposal.
Just yesterday, a spokesperson said the Governor would not support any new tax or tax increase.
And House Speaker Gene Chandler says leadership is still mulling the plan.
Track 5
:05 We are just looking over what they are doing, and working with finance to see what they come up with. I think it's premature to for us to have any postion at the moment.
The proposal now moves to House Finance Committee, where the proposal originated.
The Committee is expected to vote on the tobacco tax increase this week.
The full House may vote on the bill as early as next week.
But before it gets to the Governor, the proposal has to survive the Senate.
And at least one Republican Senator predicts the plan is dead in the water.
For NHPR News, I'm DG.
