Gov. Bill Owens on Thursday signed into law a bill that uses $140 million in new tobacco-tax revenues to provide health care benefits to thousands of low- and middle- income Coloradans.
The spending plan settles a session-long tussle between the Republican governor and Democratic lawmakers over how to divide money from the 64-cent-per-pack increase in cigarette taxes approved by voters in November.
The state began collecting the tax Jan. 1.
Democrats wanted more money channeled into expanded health care programs. Owens wanted more money set aside to cover the future costs of expanding those programs.
The governor, who called for a $45 million reserve fund in January, eventually won.
The funding plan sets aside nearly $80 million – the result of higher-than-expected revenues and a decision to postpone a plan to cover some adults for a year. “We agreed that new revenue wasn’t a blank check,” Owens said. “We needed to make sure we were conservative in terms of how we spend these dollars – strategic, effective and, above all, accountable.”
Barbara O’Brien, co-chairwoman of Citizens for a Healthier Colorado, which guided the tobacco-tax effort for two years, said many programs will be expanded or funded because of the new tax revenues.
Some examples include:
Tobacco-education programs will get $10.1 million during the current fiscal year and $26.8 million for the 2005-06 year beginning July 1.
Parents of children with disabilities were overjoyed with the new law, which Owens signed at Children’s Hospital in Denver.
Cindy DeSplinter said she will now be able to buy the supplies to feed her 3- year-old son, Micah, who has cerebral palsy. Without the new program, the family would have to spend $3,000 a month.
Christy Kopp will said she will be able to enroll her 6-year-old daughter, Kayla, in special therapy. Kayla was born with a rare metabolic disorder called Sjogren-Larsson syndrome.
Staff writer Mark P. Couch can be reached at mcouch@denverpost.com or 303-820- 1794.