State could raise cigarette taxes by $1 a pack to pay for MAP grants

SPRINGFIELD -- The idea of raising Illinois cigarette taxes by a $1 a pack could come up again as early as next week as a way to pay for the state's biggest scholarship program.
Raising taxes by $1 was debated this spring as a way to generate more money for health care for low-income people.
Now, Gov. Pat Quinn wants to use money from a cigarette tax hike to pay for the state's Monetary Award Program. It's the biggest need-based scholarship program in Illinois, but the state's financial problems have left money for spring semester grants in limbo.
Though the Illinois Senate approved of raising cigarette taxes earlier this year, there weren't enough votes in the House to follow suit. Lawmakers returning to Springfield next week could try again.
The Senate sponsor of the tax plan said spending more on health care will draw in federal money. Then, state money could be shifted to pay for MAP grants.
"I don't think we're too far apart in our goals," said state Sen. Jeff Schoenberg, D-Evanston.
The tax hike faces opposition, though.
Republicans are pushing a plan to allow some people and businesses who are behind in paying their income and sales taxes to pay up without penalty in an effort to generate millions to pay for MAP.
State Rep. Dan Brady, R-Bloomington, said Republicans on board the tax amnesty plan want to see it approved before cigarette taxes are even considered.
Plus, he said, the effectiveness of a tax increase on cigarettes might be overestimated.
"More people will stop smoking," Brady said.
That's good for health reasons, he said, but not if the state is banking on getting more money.
Steve Brown, spokesman for Democratic House Speaker Michael Madigan, said the Republican plan won't work.
Giving people who are behind on their taxes a break could actually cost the state money, he said.
"This is money the state would already get, and with penalties," Brown said. "There's a reluctance to give a break for deadbeats.The annual fall session of the General Assembly starts next week.