By Andy Arnold
Supporters of Amendment 3, the massive cigarette tax increase that will cost some Missourians up to $1.27 more per pack if approved by voters, have stated the money generated by the tax cannot be touched or diverted by the Missouri legislature. To quote one of their RJ Reynolds Tobacco Company affiliate funded television ads, “politicians can’t touch any of the money… not a dime”.
They call this a “lockbox” and have even gone as far as to argue that the money “stands appropriated” when challenged, an argument that ignores the provisions of Article 3, Section 36 of the Missouri Constitution, one of the few parts of the constitution Amendment 3 doesn’t trample.
Article 3, Section 36 states:
“All revenue collected and money received by the state shall go into the treasury and the general assembly shall have no power to divert the same or to permit the withdrawal of money from the treasury, except in pursuance of appropriations made by law.
So none of the money generated by Amendment 3 can be spent until the members of the Missouri legislature pass an appropriation bill authorizing that spending. Taxpayer dollars don’t just “stand appropriated”, as that would defeat the checks and balances in place and undermine the public trust. Any suggestion otherwise is either misinformed or just plain untruthful.
Section 36 goes on to set-out the order in which the legislature shall make appropriations, and because of the many Amendment 3 caveats that allow the legislature to use the money generated for-
- Tax collection cost reimbursement (1.5%);
- Discounts for tax stamp agents (3%);
- Enforcement of criminal tobacco activities (1%);
- Reimbursements to local governments that lose cigarette excise tax revenue because of reduced cigarette sales due to the new tax (4%); and,
- Administrative cost of the Early Childhood Commissions (3%)
Appropriations will have to be made by the legislature for these costs before the kids see a dime of this money. By allocating 12.5% for these other than kids program costs, Amendment 3 requires legislators to “touch” the money, a fact that A3 supported continue to ignore.
In addition to the required legislative action that diverts money away from Kids programs as outlined above, Amendment 3 allows the legislature to-
- Redefine administrative expenses and allocate more/less than 3% for these cost[1];
- Establish guidelines for administration of grants and recipient eligibility[2]; and,
- Change the make-up of the Commission[3].
The inclusion of language that allows the legislature to change or define key elements of Amendment 3, is just another example of how flawed this ballot measure really is. By requiring the legislature to appropriate 12.5% of the proceeds for non-Early Childhood Education expenditures (a diversion by any measure), and allowing the legislature to change administrative cost, set grant administration and eligibility guidelines and the make wholesale changes to the Commission “by law”, Amendment 3 claims of a “lockbox” and that “politicians can’t touch any of the money” are just plain false.
But, the many truths about Amendment 3, adding abortion language, stem cell research language, subversion of public school funding and banning grant recipients from advocating for tougher tobacco use laws, is something Amendment 3 supporters don’t want to acknowledge and that I predict will ultimately mean defeat on November 8th by Missouri voters.
[1] Amendment 3, Section 54(a). 2.
[2] Amendment 3, Section 54(b). 2.
[3] Amendment 3, Section 54(b). 3.
