FOR IMMEDIATE RELEASE
Bill to Increase Funding for Classrooms Passed by Key Senate Committee in Bipartisan Vote
$1.50 Cigarette Tax Will Pump $89 Million into Strapped Public Schools
(Santa Fe, NM) – The Senate Finance Committee tonight voted to advance with bipartisan agreement legislation that would give public school classrooms a significant funding increase of more than $89 million per year by increasing the state’s cigarette tax by $1.50. SB 231, sponsored by Senator Howie Morales of Silver City, would direct the new revenue to strengthen New Mexico’s K-12 classrooms, which have been hit with cuts worth tens of millions of dollars in recent years. The measure was approved on a strongly bipartisan basis. It now goes to the Senate floor for passage.
“Our classrooms need the money that a cigarette tax boost would bring. Public schools will be facing another dire funding crisis later this year, if Governor Susana Martinez sticks to her campaign promise to veto any new revenue bills. If we care about children as much as we all say we do, we must take action to help schools’ bottom line now. SB 231 will do that,” said Sen. Morales.
SB 231 would increase the tax on cigarettes by $1.50 per pack, with an equivalent increase in other tobacco products including e-cigarettes and chewing tobacco. The tax on a pack of cigarettes would increase from $1.66 to $3.16, generating new revenues of more than $89 million annually. The bill earmarks all the proceeds for the state equalization guarantee (SEG), or formula distribution, for all the state’s Kindergarten -12 public schools.
Supporters said the funds are necessary to backfill deep funding cuts to New Mexico’s public schools during recent years, to strengthen classroom’s budgets and improve outcomes for students. Without an infusion of new revenues, schools may see cuts of 5% to 7% across the board. The result would be larger class sizes; fewer teachers; fewer counselors; reduced classes in physical education, music, dance and art; cuts to all-day kindergarten and summer classes, and even school weeks being reduced to four days.
“This legislation would result in a quadruple win for our state by raising millions more in needed revenue for our public schools, saving the state millions spent on health care, keeping thousands of New Mexico kids from smoking, and helping thousands of adults quit,” said Sen. Morales.
SB 231 is endorsed by the state’s education advocates, and all the leading health organizations, including the American Lung Association, American Heart Association, the Campaign for Tobacco-Free Kids, and the American Cancer Society Action Network.
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