About $11 million that the state could collect from a proposed a 75-cent increase to the state’s cigarette tax would be partly used to fund early childhood development under a proposal a powerful state Senate committee approved Thursday morning. But that’s not what the state House of Representatives had in mind—the version they passed would put the $11 million to K-12 education.
That disagreement between the two chambers was the latest drama of this week’s special session.
On Thursday morning, the Senate Finance Committee on a 7-2 vote required that the $11 million go to two separate areas: $4.6 million to the state pre-kindergarten programs administered by the state Public Education Department; and $6.4 million to early childhood programs administered by the Children, Youth and Families Department.
“I hope these are friendly amendments because there’s not a lot of time,” said Sen. John Arthur Smith, D-Deming, the chairman of the Senate Finance Committee chairman.
“I hope so too,” said Rep. Gail Chasey, D-Albuquerque, who sponsored the cigarette tax hike.
The disagreement between the two chambers over how to disburse the $11 million appeared to strain some lawmakers’ patience as many legislators are visibly antsy to return home after spending nearly four days in Santa Fe for this week’s special legislative session.
The cigarette tax hike is the last pieces of a package of bills that addresses next year’s projected budgetary shortfall of several hundred million dollars. The Legislature passed a $5.3 billion budget and measure that raises $240 million in revenue through various tax and revenue-generating measures.
“We’re running up against a motion to sine die,” Smith told Chasey, citing the phrase legislators use to adjourn. “This whole bill would be subject to being revived next year” if the two chambers couldn’t agree on a compromise.
The balance of the proceeds from the cigarette tax hike, or $22 million, would go into the state’s main account, or general fund.
The cigarette tax hike legislation now goes to the Senate floor. If it passes out unamended, the House can either agree with the change, sending the legislation to the governor, or disagree.
If the House disagrees, that would automatically set up a conference committee between the two chambers to reconcile their differences.
It is unclear what happens if the Senate were to adjourn prior to the House making its decision.