Some Democrats in the Mississippi House are backing off their insistence that a cigarette tax hike be earmarked for Medicaid, citing a need for compromise as the state tries to generate new revenue.
State Rep. George Flaggs, author of a bill that proposes using a tobacco tax hike for the health care program, said he is now willing to support putting the money into the general fund. That proposal is supported by Gov. Haley Barbour, a Republican who recently reversed his longstanding objection to the tax increase.
Lagging revenues are prompting lawmakers to look for new revenue to pay for state services. The state’s current budget is $65.2 million below estimates. Barbour has already trimmed $42 million from the $5 billion budget, and will announce deeper cuts next week that are expected to affect all agencies.
“If we earmark it, it can only go to Medicaid or health care. But if you don’t, it helps absorb the shortfall in every agency,” Flaggs, D-Vicksburg, said.
