Marin Institute Calls on States with Budget Shortfalls to Follow California in Proposing an Alcohol Tax Increase

Long Overdue Tax Increases Could Ease Budget Deficits in 39 States and Mitigate Alcohol-Related Costs

SAN RAFAEL, CA – Public health advocates are calling on policymakers around the nation to follow the lead of California Governor Arnold Schwarzenegger to help fund ailing state budgets through higher alcohol taxes. On Thursday, Governor Schwarzenegger proposed a nickel a drink tax increase on beer, wine, and distilled spirits to help reduce California's budget shortfall, while providing critical support to the state's programs that reduce alcohol-related problems.

At least 38 other states also face serious budget deficits, totaling more than $60 billion dollars, according to the Center on Budget and Policy Priorities. "A nickel a drink -- It's the change we need to fix budgets around the nation," said Bruce Lee Livingston, executive director of Marin Institute, the California-based alcohol industry watchdog. "The largest states, such as New York and Florida can avoid cutting essential programs through long-overdue alcohol tax increases," Livingston added. California's proposal accomplishes exactly that.

A nickel per drink increase in New York could raise an additional $355 million. Florida could add $430 million to its budget with a similar increase. Some states have not raised alcohol taxes in decades. For example, the last time alcohol taxes were raised in Massachusetts was 1975; while in Arizona alcohol taxes were last raised in1983.

"Too many states are facing serious budget shortfalls while leaving too much money on the table, said Michele Simon, Marin Institute's research and policy director. "In most of these states, inflation has eroded the real value of alcohol tax revenue.  Meanwhile governments continue paying for the rising costs of alcohol-related problems, such as healthcare and criminal justice. The time has come for states to join with California and raise alcohol taxes to reduce these costs."

For additional information on alcohol-related costs and taxes please visit www.marininstitute.org