PCPA has been working on a dedicated alcohol tax initiative which 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 Katie True (R-Lancaster) and Linda Bebko-Jones (D-Erie), 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
bipartisan and bicameral. 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.
A copy of the draft legislation and a co-sponsorship memo began circulating the Capitol in early May. To date, more than 47 House members and over a dozen Senators have signed on to the 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 tax is expected
to generate $207.6 million in the 2004/05 budget. The proposed legislation
would designate that approximately 75 percent of these funds ($154.627 million
in fiscal year 2005/06) would be dedicated to drug and alcohol 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 funding from the alcohol tax. In future years approximately 75 percent of any increases in the 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. Information regarding identifying your individual
legislator or locating contact information for him/her can be found in PCPA’s
Legislative Directory booklet or on the PCPA web site at
in the Legislative Affairs section.
 PCPA
Dedicated Alcohol Tax Position Paper02/24/05 |
Dedicated
Alcohol Tax Resolution |
| Drug
and Alcohol Treatment and Prevention Fund Act |
Senate
Co-Sponsorship Request |
| Derivation
of Funding Percentages Dedicated Alcohol Tax |
House Co-Sponsorship Request |
