RJR: State Budget Could Affect 50,000 NC Tobacco Jobs

Source from:  WXII12.com 03/18/2009

The more than 50,000 tobacco industry workers in North Carolina could be affected if state legislators pass the budget proposed by Gov. Beverly Perdue, a spokeswoman at Winston-Salem-based RJ Reynolds Tobacco said Tuesday. North Carolina's historically low cigarette tax would soar by $1 per pack if Perdue gets her way with the state budget. Perdue's proposal would increase the cigarette tax from 35 cents per pack to $1.35 and seek a 5 percent tax surcharge on alcohol. The additional taxes, according to Perdue, would create $1.3 billion in tax revenue for the state. The plan will also reduce spending by $1.3 billion and slash the state's work force by 1,030 positions. While hundreds of jobs that Perdue targets are vacant and more people likely would be reassigned, about 270 could be thrown out of work altogether. And the job losses don't include expected employment reductions in the public schools and university system, which would have more flexibility in making their own cuts. "I am stepping up to the plate to help our citizens when they need it the most," Perdue said. "Despite our nation's tough economic situation, I stand ready to strengthen our middle class, improve public education and public safety, and ensure that government works smart for our citizens." The nearly $21 billion budget for next year would raise $508 million from the two proposed tax increases. RJ Reynolds Tobacco spokeswoman Maura Payne said this isn't the time or product to tax. Payne said the more than 50,000 jobs in the state that are tobacco-related could be in jeopardy if the legislation passes. "So if there are 50,000 jobs tied to the tobacco industry that are in jeopardy because of this proposed tax increase, that could have a tremendous ripple effect throughout the state," she said. Organizations that promote public health are applauding the tax proposal. "Governor Purdue's proposed increase in the cigarette tax is historic by North Carolina standards and demonstrates the Governor's continued commitment to improving the health of North Carolinians," The North Carolina Alliance for Health said in a statement. Perdue also wants to raise a licensing fee on "professionals" from $50 to $200 to raise another $27 million. The extra money attempts to deal with the state's worse fiscal conditions in a generation. The Legislature will review the plan as it approves its own budget by this summer. Enditem