Legislative Co-Sponsors Needed for Dedicated Alcohol Tax Legislation

March 9, 2007

PCPA is in the process of reintroducing dedicated alcohol tax initiative legislation. This initiative would secure the current five line items for drug and alcohol (D&A) funding in the state budget. Senators Patricia H. Vance (R-Cumberland/York) and Jay Costa, Jr. (D-Allegheny), as well as Representatives Kathy Manderino (D-Philadelphia) and Katie True (R-Lancaster), are spearheading the legislative effort in the Senate and House, respectively.

Support for Security of D&A Funding Widespread
Security of D&A funding is not a Republican/Democrat or House/Senate issue. From the beginning, this effort to shore-up current D&A funding has been bi-partisan and bi-cameral. Therefore, both the legislative prime sponsors and PCPA are seeking as many legislators as possible to co-sponsor and support the dedicated alcohol tax legislation.

Synopsis of the Dedicated Alcohol Tax Initiative
As outlined in the co-sponsorship memo, the alcohol tax in question has been in existence since 1936 and is generally known as the Johnstown Flood Tax or the Emergency Tax. This is an 18 percent tax on wine and liquor only and is collected by the Pennsylvania Liquor Control Board. Currently the revenue is undesignated and goes into the state’s General Fund. The proposed legislation would designate that approximately 75 percent of these funds be dedicated to D&A treatment and prevention. The balance of the revenue would continue to go into the General Fund.

This proposal is revenue neutral in that the request is not new funds for these programs; rather these programs, which are currently funded from the General Fund budget, would, in the future, be funded by dedicated revenue from the alcohol tax. In future years approximately 75 percent of any increases in revenue generated by this tax would be distributed proportionately among the five identified D&A line items in the state budget.

How PCPA Members Can Assist in This Effort
PCPA members are asked to contact their respective legislators as soon as possible encouraging them to sign the co-sponsorship memo for the dedicated alcohol tax initiative. The memo is currently in circulation in the House. A memo will soon be available in the Senate. Also attached is a listing of House members who have already agreed to be co-sponsors (designated with an “X”). If one of the co-sponsors is your legislator please take a moment to thank him/her. If your legislator is not currently listed as a co-sponsor, please take a moment to contact him/her and request that the legislator sign on to the legislation.

Information regarding identifying your individual legislator or locating contact information for him/her can be found on PCPA’s web site in the Legislative Affairs section, at www.legis.state.pa.us, or at www.capwiz.com/lwv/officials/state/?lvl=C&state=pa link. The 2007/08 legislative directories will not be available statewide until approximately April.

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