Effects of a 7-cent tobacco tax hike

Texas health and human services programs could receive nearly half a billion dollars in additional funding over the state's 1990-1991 budget period under proposals being advocated by Comptroller of Public Accounts Bob Bullock. The proposals center on a 7-cent rise in the state's cigarette tax, with equivalent increases in other tobacco taxes. Revenue from the additional tax--estimated at $166 million in 1990-1991--would be directed into state health and human services programs eligible for federal matching funds. By directing the money in this way, the state could receive $274 million in additional federal aid. The $166 million in additional cigarette tax revenue, combined with the $274 million in increased federal aid, would yield $440 million that could be used in a variety of ways in state health and social programs.