Gov. Arnold Schwarzenegger agrees to back Toabcoo Tax

[NorcalMark-cl]

Lottery lease plan dropped

Governor agrees to back a tobacco tax increase as a way of financing new universal health coverage. By Aurelio Rojas - arojas@sacbee.com

Gov. Arnold Schwarzenegger has scrapped his proposal to lease the state lottery to help finance a universal health care plan and agreed instead to Speaker Fabian Núñez's proposal to raise taxes on tobacco products, officials disclosed Friday.

Schwarzenegger also has agreed to establish a higher sliding scale fee on employers than he previously had to help finance the $14 billion plan.

The new proposal calls for requiring businesses, depending on their size, to spend 1 percent to 6.5 percent of their payroll on health care or pay into a state fund.

The governor had proposed that employers pay zero to 4 percent while Núñez, D-Los Angeles, and Senate President Pro Tem Don Perata, D-Oakland, had countered with 7.5 percent.

Aides to the governor and speaker confirmed the new developments as the Assembly prepares to vote Monday on the proposed health care legislation, but said the size of the proposed tobacco tax is being negotiated.

Aides to Núñez said the speaker wants to add $2 to the current 87-cents-a-pack tax on cigarettes, while the governor is proposing $1.50.

Aaron McLear, a Schwarzenegger spokesman, would not comment on the specifics of the negotiations, but confirmed that leasing the lottery is no longer part of the governor's plan.

"We have agreed to tobacco being part of the financing agreement that will go before voters," McLear said. "We're still negotiating the size and the terms."

Another stumbling block may be Perata's opposition to the tobacco tax, which he predicts will prompt the tobacco industry to mount an extensive campaign to defeat a ballot measure to provide funding for health care.

"The tobacco tax is flawed only because big tobacco has a huge amount of money to go through at this thing," Perata said Thursday after leaving a meeting in the Governor's Office.

A $2.60-a-pack increase, sponsored by California's hospital industry and health care advocates, was opposed by Schwarzenegger and rejected by voters last year.

On Friday, a spokeswoman for the Senate leader was waiting to see the language of the legislation the Assembly is scheduled to vote on Monday.

"We understand they are still making changes to the plan and (have) not settled on the amount of the tobacco tax," said Alicia Trost, a Perata spokeswoman.

With the window closing on his year-old campaign for universal health care, the governor visited a Southern California hospital Friday to tout the billions in federal dollars he said his plan would attract.

Some lawmakers, including Perata, believe the Legislature should weigh the service cuts that will have to be made because of the state's projected $14 billion deficit before it tackles health care.

But the governor told reporters during a visit to Long Beach Memorial Medical Center that "health care reform is essential" to fixing the state's fiscal imbalance because his plan would increase matching funds from Medicaid.

California ranks last in the nation in reimbursement rates from the federal program for the poor and disabled, called Medi-Cal in the state.

"Our plan will fix the problem because we will raise Medi-Cal rates," said Schwarzenegger, whose plan calls for leveraging more state spending on health care to increase federal matching funds and provide $4 billion more annually for Medi-Cal.

The governor said Long Beach Memorial lost $28 million last year alone because of uncompensated Medi-Cal services.

"The good news is that they're still treating the patients, because many of the hospitals have stopped treating the patients," he said.

In a move that reflects growing frustration over insufficient state reimbursement for health care, Sutter Roseville Medical Center this month severed its contract with Medi-Cal.

The decision means Medi-Cal patients no longer are being admitted to the 270-bed hospital for elective surgeries.

Sutter Roseville was the 15th hospital in the state to discontinue its Medi-Cal contract since 2002; two of those hospitals have since renegotiated their contracts with the state.

[Itsme-Speedy-G]

Here is the problem with the Republican Governor, He is a Democrat! The “State Fund” is also known as Worker Comp. That system is financially breaking business, POORLY mismanaged, full of corruption, and abused by those that it was made to protect.

I have the same bitch as the SCHIP, FIX IT BEFORE THROWING MORE TAX DOLLARS AT IT!!!!!!

[happy1]

The Governator has numerous liberal Democrats in the state legislation...The cigarette companies have already paid billions,what not the fast food industry??

[Itsme-Speedy-G]

for being a health and fitness buff, he should tax fast food. A Jack in the box ultimate cheese burger has something like 1010 calories, 71 g of fat, 28g of saturated fat, and 1580g of sodium.

I did not account for fries or a soda, either.

TAX THAT, Bitch

[happy1]

Originally Posted by Itsme-Speedy-G

for being a health and fitness buff, he should tax fast food. A Jack in the box ultimate cheese burger has something like 1010 calories, 71 g of fat, 28g of saturated fat, and 1580g of sodium.

I did not account for fries or a soda, either.

TAX THAT, Bitch

Amen Bro

Get rid of the liberals around the Governor and see what happens

[vicegrips.ceo.]

freakin sellout, you know how many pictures i've seen with him and a cigar. screw the governator.

[JohnRider]

That is a HUGE tax increase. California is just asking for trouble if they pass that. People will really have an incentive to smuggle/steal cigarettes.

[Itsme-Speedy-G]

The cigar tax is 43-47% here in Cali. That is why I buy boxes on line, most of the time

[Marlboro Cigars-cl]

Good job, Arnold.

[vicegrips.ceo.]

Originally Posted by Itsme-Speedy-G

The cigar tax is 43-47% here in Cali. That is why I buy boxes on line, most of the time

seriously mike-g,
that is going to kill some b&m's in the process if those taxes go through. everybody is giung to have to go the online route.

[Itsme-Speedy-G]

Originally Posted by vicegrips.ceo.

seriously mike-g,
that is going to kill some b&m's in the process if those taxes go through. everybody is giung to have to go the online route.

I spend plenty of $$ at the local B&M's They have monthly get togethers and get us liquored up enought to buy by the box. Like I said most boxes.



FYI: Cali tax on Cigars is 45.7% and .83 cents on a pack of cigarettes.

[tobacmon]

Originally Posted by Itsme-Speedy-G

for being a health and fitness buff, he should tax fast food. A Jack in the box ultimate cheese burger has something like 1010 calories, 71 g of fat, 28g of saturated fat, and 1580g of sodium.

I did not account for fries or a soda, either.

TAX THAT, Bitch

YA WHAT HE SAID---DOUBLE BuMP!azzapp:

[tobacmon]

Originally Posted by vicegrips.ceo.

freakin sellout, you know how many pictures i've seen with him and a cigar. screw the governator.

He's not a Gov.--He's a Fuc*in sell out---Cut His ASS OFF!

[Lok17]

Hey guys, we can't manage the billions of dollars we collect already... so ummmm you're going to have to give us more!!! But instead of making everyone pay for their own shit, well um, ya we are just gonna make a small minority pay for everyone!!!!!! YAY !!!

[tobacmon]

Yippie Yi O---- Cow Paddy!