California Online Voter Guide

November 2006 General Election
14th Edition

Proposition 86: Tax on Cigarettes. Initiative Constitutional Amendment and Statute. Failed

Summary

• Imposes additional 13 cent tax on each cigarette distributed ($2.60 per pack), and indirectly increases tax on other tobacco products.

• Provides funding to qualified hospitals for emergency services, nursing education and health insurance to eligible children.

• Revenue also allocated to specified purposes including tobacco-use-prevention programs, enforcement of tobacco-related laws, and research, prevention, treatment of various conditions including cancers (breast, cervical, prostate, colorectal), heart disease, stroke, asthma and obesity.

• Exempts recipient hospitals from antitrust laws in certain circumstances.

• Revenue excluded from appropriation limits and minimum education funding (Proposition 98) calculations.

• Fiscal Impact: Increase in new state tobacco excise tax revenues of about $2.1 billion annually by 2007–08, declining slightly annually thereafter. Those revenues would be spent for various health programs, children’s health coverage, and tobacco-related programs. Unknown net state costs potentially exceeding $100 million annually after a few years due to provisions simplifying state health program enrollment rules and creating a new pilot program for children’s health coverage. Unknown, but potentially significant, savings to the state Medi-Cal Program and counties from a shift of children from other health care coverage to the Healthy Families Program (HFP); potential state costs that could be significant in the long term for ongoing support of expanded HFP enrollment. Unknown, but potentially significant, savings in state and local government public health care costs over time due to various factors, including an expected reduction in consumption of tobacco products. Full Text of Proposition (PDF)

Official Campaign Web Sites and Contact Information

• Yes on Proposition 86

  Yes on Proposition 86
  555 Capitol Mall #1425, Sacramento, CA 95814
  (916) 448-2720 or info@healthycalifornia.com

• No on Proposition 86
  No on Proposition 86, Californians Against Unaccountable Taxes
  1415 L Street, Suite 1250, Sacramento, CA 95814
  (916) 708-6811 or info@noprop86.org

Who Signed the Ballot Arguments

• Yes on Proposition 86

Carolyn Rhee, Chair, American Cancer Society, California Division
P.K. Shah, M.D., President, American Heart Association, Western States Affiliate
Timothy A. Morris, Board Member, American Lung Association of California

• No on Proposition 86

Larry McCarthy, President, California Taxpayers' Association
James G. Knight, M.D., Past President, San Diego County Medical Society
Steven Remige, President, Association for Los Angeles Deputy Sheriffs

Follow the Money

Detailed information about all contributors for and against Prop. 86 is available from campaign finance reports at Cal-Access, the Secretary of State's campaign disclosure web site. To view the most recent contributions, select a committee and click "Late and $5000+ Contributions Received".

News Stories about the Propositions

CVF's News Stories section provides California voters with convenient access to a sampling of news articles that give an overview of the potential impact of each proposition on the ballot.

For More Information, CVF Recommends...

The California Secretary of State publishes the Official Voter Information Guide which features detailed information on Proposition 86, including the Legislative Analyst's nonpartisan analysis and official pro/con arguments from proponents and opponents.

Other good nonpartisan resources include: the League of Women Voters of California's Pros and Cons and In Depth Nonpartisan Analysis; HealthVote's Nonpartisan Analysis; the California Budget Project's Nonpartisan Analysis; the Easy Voter Guide; and Around the Capitol's Election Track, featuring up-to-date campaign contribution data.

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This page was first published on September 12, 2006 | Last updated on June 21, 2007
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