Budget must include provisions for funding

March 11, 2003

Keeping campaign promises is admirable, but some promises kept harm the constituent more than help him.

One might wonder if it’s about keeping promises or the promise of re-election.

For months, we’ve encouraged the South Carolina Legislature to raise the tax on tobacco from our current 7 cents (among the lowest in the nation) to fund the ailing Medicaid program, now some $80 million short. Even less than an additional 50 cents per pack of cigarettes is estimated to raise $150 million.

With every dollar we don’t fund in Medicaid at the state level, we lose $3 of matching federal funds. How complicated can the math be?

Yet the latest budget discussions in Columbia don’t even mention any increase, despite a study funded by the state Chamber of Commerce that says medical costs for the insured will rise dramatically if Medicaid for the poor is not fully funded.

The results of the study, that those who can pay will end up paying for those who can’t, through higher hospitalization costs and higher insurance costs, are not surprising. This isn’t the first time that those who can aid those who can’t, and we have a certain obligation to help those less fortunate. To not do so is neglecting an act of simple human kindness. Thus for our legislature to ignore a possible funding resource to enable that aid to continue just doesn’t make any sense. And all because of a pledge not to raise taxes espoused by some lawmakers and our governor. Gov. Mark Sanford’s issue is that he won’t raise any tax unless it is accompanied by a corresponding decrease in the state income tax. The idea that in our current budget climate we should cut a source of revenue just doesn’t make any sense. Our state is already $500 million in the hole; will we only dig ourselves in deeper to make a point?

The House was to begin the budget debate on Tuesday and although there is no bill to raise tobacco taxes (and we stress, tobacco taxes, not just cigarettes), an amendment could be filed to bring the subject into the discussion.

We encourage our lawmakers to do the right thing, not the politically beneficial thing. We have the opportunity to fund Medicaid and also other health care programs by adding less than 50 cents to a product that although legal adds millions to health care costs annually.

South Carolina currently has a 7-cent tax per pack compared to the tax in most other states that ranges from 50 cents to $1.40. While we don’t think the tax increase should be so high as to be a gouge on consumers, to bring South Carolina to even the lowest of other state levels is not just a practical move — it would be one that decreased our deficit.

Those who oppose any increase have said it not only targets a segment of the population but disproportionately affects the poor. Higher costs of any product disproportionately affect the poor; that, too, is simple math. Has our legislature come out to fight for lower gasoline costs?

An editorial last year quoted a spokesman for one of the major tobacco firms who said it wasn’t "fair to single out smokers to pay for things that will benefit everyone."

As we said at the time, it’s done every day. Retirement-aged residents (as well as childless and newlywed couples) pay school taxes because a good public school system is a community benefit. Workers who commute in from another community pay sales taxes and support local businesses while they’re in town. We all pay a share for the greater good.

While lawmakers are discussing all the cuts that are coming for our state agencies, and thus the people of South Carolina, in services and benefits, they should not ignore an option to keep Medicaid afloat.
Forget about campaign promises.

Live up to the promise of service to the people of South Carolina.

Copyright 2003, Anderson Independent Mail. All Rights Reserved.