Advocacy Efforts Needed for Dedicated Alcohol Tax Initiative

July 18, 2006

PCPA members are asked to assist with the next level of advocacy needed to realize the Dedicated Alcohol Tax for Treatment initiative. The association has been working with numerous other organizations to advance this initiative. PCPA and other supporting organizations have had some outstanding success, but additional support is crucial in order to make the initiative a reality. In light of the lack of any increases for D&A and the anticipated cuts on the federal level, it is believed that this initiative is the best hope for seeing any future increases in funding.

Some important organizations have either opposed this legislation (SB 727 and HB 1649) or not taken a position on it. A letter was sent July 12 to Pennsylvania Recovery Organizations Alliance (PRO-A), Pennsylvania Association of County Drug and Alcohol Administrators (PACDAA), and th Drug and Alcohol Service Providers of Pennsylvania (DASPOP) asking that they take another look at the legislation and requesting an opportunity to address any concerns that might exist in order for the field to move forward together.

This legislation focuses on an existing tax on liquor and wine often referred to as the Johnstown Flood Tax or the Emergency Tax. The Johnstown Flood Tax revenue is currently deposited directly into the General Fund and the funds for the five line items identified are currently coming out of the General Fund, which makes this revenue neutral in the first year. It would allow for small, incremental increases in future years as the revenue increases. The majority of these drug and alcohol line items have not seen an increase in many years. New funding is desperately needed given inflation, increased need for services, increased costs, and the loss of intergovernmental transfer funding. Also, funding at the federal level will likely remain flat or grow only slightly as pressure to constrain spending at the national level intensifies. In addition, the state legislature voted to lower the alcohol level for Driving Under the Influence (DUI) to .08 percent. As this initiative unfolds it will result in increased DUIs, increased costs to local communities, and an increased need for treatment.

If this legislation had passed three years ago there would be an additional $20.471 million dollars for treatment in the system today. The coalition believes strongly that this initiative will provide more security to the existing line items and realize much needed increases in funding.

All PCPA members are asked to contact known representatives in PRO-A, PACDAA, and DASPOP and ask for their much needed support. More information is available on PCPA’s web site in the Legislative Affairs section. Questions should be directed to Lynn Cooper at the association.

Please see the attachment which includes:

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