Part of tobacco tax may go to transportation

Although Oregon is considering increasing tobacco taxes for health care, a legislative committee heard a proposal Monday to raise the tax by 7 cents per pack of cigarettes to pay for special transportation for seniors and people with disabilities.

Of the current tax of $1.18, 2 cents goes to such programs now — and the most recent increase was 20 years ago.

Advocates of an increase told the House Transportation Committee that the tax, even combined with federal transit grants and other state income, doesn't generate enough money to keep up with current and projected demands of an aging population.

"Because funds are limited, we must tell some of the people who ask to ride special transportation that they do not qualify," said L.M. Reese of Eugene, who came to testify at the Capitol via a special van.

"Some of these people learn to ride the bus, or have family and friends drive them around. But a lot of people just stay in their homes all the time or move to assisted-living facilities."

The rising cost of providing service under the Americans with Disabilities Act was singled out by Salem-Keizer transit officials in their decision to discontinue fixed-route Saturday service in January — and, according to the Oregon Transit Association, freed it from having to provide ADA rides.

Oregon's population of older adults and people with disabilities is projected to grow from 22 percent in 2010 to 28 percent in 2030. Fixed-route service is cheaper, but those older adults often require more costly demand-response service. Advocates said the alternative is immobility.

"Mobility is crucial to the health and well-being of all Oregon residents," said Margaret Neal, director of the Institute on Aging at Portland State University, who presented a report requested by lawmakers in 2007. "For older adults who do not drive, public transportation is vital."

As part of his transportation package, Gov. Ted Kulongoski has proposed an increase of 2.5 cents per pack, on top of the 60 cents per pack for health care. Rep. Terry Beyer, D-Springfield, who leads the transportation panel, has a different proposal for 7 cents per pack.

Rep. Mike Schaufler, D-Happy Valley, said he would support a "modest" increase.

"But these trends are totally unsustainable," he said. "We cannot raise enough money to support these services."

When John Charles, president of the free-market Cascade Policy Institute in Portland, suggested that a cigarette-tax increase was self-defeating because proceeds for special-transportation programs would decline over time with fewer people smoking, Beyer saw it differently.

"It will bring down health-care costs in our state and might make more money available to help fund these programs," she said.

Nah, I really hate it when I hear about taxes, It help us. . . mostly government officials are benefitting from this specially those corrupt officers.