Winning a Tax in Marlboro Winning a Tax in Marlboro CountryCountry

Sarah Mikesell Growney – Grassroots Manager– Wyoming Tobacco Use Prevention

(WYTUP)– American Heart Association, Fiscal Agent– Cody, WY sarah.growney@heart.org – 307.527.6311

OutlineOutline

Background

Grassroots Mobilization

Media Messages

Working with Legislators

Background Background

Tobacco Industry’s InfluenceTobacco Industry’s Influence

Numerous lobbyists hired from tobacco industry

“Incestual” relationships among lobbyists

Threatened pulling of rodeo scholarships if legislators support tobacco legislation

LandscapeLandscape Just under 500,000 people

Largest city Cheyenne, just over 50,000

72% republicans, 28% democrats

Election year, ½ legislators up for office

Very conservative, anti-tax

One of three states with no budget deficit

Excise Tax History Excise Tax History

No excise tax increase since 1989

Sales tax exemption removed from cigarettes in 1999

Small excise tax put on other tobacco products

Cigarette tax was 12 cents

Grassroots Mobilization and EducationGrassroots Mobilization and Education Tax targeted for 2003 session

Began building stronger coalition in summer of 2001

Typical partners and strong lobbyist associations such as AARP, Wy. Ed. Assn., League of Women Voters

Began educating with newsletter articles in March, 2001

Grassroots Mobilization, Ctd.Grassroots Mobilization, Ctd.

Excise Tax Task Force Meeting April, 2002

Grassroots mobilized to attend candidate forums and meet legislators– July, 2002 grassroots mailed packets with

assignments – Were very SPECIFIC WITH ASSIGNMENTS – August, 2002 follow up letters mailed along with

phone calls

Grassroots Mobilization, Ctd.Grassroots Mobilization, Ctd. Letter to the Editor Campaign

– Draft e-mail/letter to volunteers requesting help, offering to “help” draft letters to editor

– Set up assignments, 3 people per week 1 month prior to session and during whole session

– Deadlines– Talking points – Needed contact information for all newspapers

(local and statewide) – Follow-up, follow-up, follow-up

Grassroots Mobilization, Ctd.. Grassroots Mobilization, Ctd..

The key to grassroots mobilization is the opposite of “If you build it they will come”– You must go to them – Sell your product

How would you feel about writing a letter? How would you feel about calling Legislator Smith?

– Provide all necessary information– Deadline – Follow-up! – Direct targeting of grassroots in needed districts

Effective Media MessagesEffective Media Messages

When it comes to the tobacco tax, fairness goes up in smoke! – Equality State – Cost of Tobacco Use

Respond to people and legislators “we don’t believe the CDC.”

Draft resolution to be signed by physicians, dentists, teachers, etc for “release” in newspapers at optimum time

Legislature Education Legislature Education Targeted all legislators, candidates,

gubernatorial candidates , Revenue Committee, and Labor Health & Social Services Committee

Mailed compilation of newsletter articles in summer 2002, along with packets of information

Spoke in front of legislative committees during summer, with follow-up letters addressing concerns raised

Legislature Education, Legislature Education, continuedcontinued

Responded to “Tobacco Fairness Coalition Letter”

Two legislative committees sponsored bills

Legislative Breakfast, Lobby Day

Meet with governor in order to confirm support for bill(s)

Messaging for LegislatorsMessaging for Legislators

Problems in Wyoming with the “Kids” message – We “don’t care” about kids– Taxes should not be used for social engineering

Legislators care about money/budgets/fairness

User Fees

Lessons learned: Set the stage early for: “Receiving rodeo scholarships is not an exchange for votes.”

Legislator Messages, Ctd. Legislator Messages, Ctd.

Find out from state Medicaid officer what percentage of Medicaid expenditure is tobacco related

Call CDC to determine how your state’s direct medical costs and lost productivity is determined

Legislator Messaging, Ctd. Legislator Messaging, Ctd. Handout Legislative Notebooks to all legislators

who care (even remotely) about the issues– Include:

Bordering States Taxes Map (total, sales + excise) Info on Current Excise Tax Benefits from Tax Increase Reduce Smoking and Increases Revenue Other Tobacco Products Youth Tobacco Rates State’s Spending on Tobacco Prevention The Cigarette Tax and Settlement Payments Cross-Border and Internet Sales Regressivity Polling

Nebraska:Excise Tax: $0.64 Sales Tax: $0.18Total state tax per pack $0.82

Wyoming:Excise Tax: $0.12Sales Tax: $0.13Total state tax per pack $0.25

Montana:Excise Tax: $0.18Sales Tax: $0.00Total state tax per pack $0.18Considering $1.50 increase

Colorado:Excise Tax: $0.20Sales Tax: $0.00Total state tax per pack $0.20Considering future ballot increase $0.50

South Dakota:Excise Tax: $0.33Sales Tax: $0.14Total state tax per pack $0.47Considering $0.50 increase

Idaho:Excise Tax: $0.28Sales Tax: $0.158Total state tax per pack $0.44Considering moderate increase

Utah:Excise Tax: $0.695Sales Tax: $0.17Total state tax per pack: $0.87

Legislator Messaging, Ctd. Legislator Messaging, Ctd. Distribute newspaper articles of surrounding states

looking at tax increases

Avoid getting labeled as liberal organization

Hire/retain/recruit “conservative”, politically savvy lobbyists to speak to key/conservative legislators

Diverse team of lobbyists to target legislators

71% republicans voted for tax, 60% democrats

Be Prepared Be Prepared Although you want to stick to the health message, do

not ignore all sides of argument

Have fact sheets ready for amendments (lowering tax amount etc)

Pick a spokesperson for hearings that is good at “speech and debate”, not necessarily just a pretty face

Count on a little bit of good luck!

24 cents is not enough!Big Tobacco says price does matter:

 1.     The Surgeon General’s 2000 report shows that a 10 percent increase in price can lead to a 6.5 percent decline in youth consumption. An increase of 24 cents is not even a 10 percent increase. 2.     An insignificant price increase has no effect on the initiation of smoking among our youth. 3.     60-cent increase = 4,900 saved from addiction 48-cent increase = 3,900 saved from addiction  * In the move from 60 cents to 48 cents, we have already compromised 1,000 Wyoming youth. We cannot afford to compromise any more of our youth to addiction! 4.     60-cent increase = 3,100 fewer adult smokers 48-cent increase = 2,500 fewer adult smokers  * Again, with this move, we have already compromised 600 current smokers’ cessation and health.  5.     60-cent increase = $25 million in additional state cigarette tax revenue 48-cent increase = $20.3 million in additional state cigarette tax revenue  * The more the tax increase decreases, the more revenue decreases, yet the cost of tobacco use remains the same. 6.     Obviously, Big Tobacco knows that price does matter. Otherwise, tobacco industry lobbyists would not diligently oppose a 48-cent increase, while supporting an ineffective increase of 24 cents.

 24 cents is not a compromise…It’s siding with Big Tobacco.

Phasing is Ineffective 1.     Anything less than a 10 percent increase in retail price is not effective. An increase of 24 cents is not even a 10 percent increase and would not prove effective.  2.     An insignificant price increase has no effect on the initiation of smoking among our youth. 3.     Obviously, Big Tobacco knows that price does matter. Otherwise, tobacco industry lobbyists would not diligently oppose a 48-cent increase, while supporting an ineffective phasing option. 4.     In reference to past testimony, while cross-border sales account for only 1 percent of all cigarette purchases, Montana is considering a tax increase of at least $1.00, according to a Jan. 24, 2003 article in the Billings Gazette, bringing its total to $1.68, and Colorado is considering a moderate increase. 5.     60-cent increase = 4,900 saved from addiction 48-cent increase = 3,900 saved from addiction    In the move from 60 cents to 48 cents, we have already compromised 1,000 Wyoming youth. We cannot afford to compromise any more of our youth to addiction! 6.     60-cent increase = 3,100 fewer adult smokers 48-cent increase = 2,500 fewer adult smokers    Again, with this move, we have already compromised 600 current smokers’ cessation and health.  7.     60-cent increase = $25 million in additional state cigarette tax revenue 48-cent increase = $20.3 million in additional state cigarette tax revenue    The lower the tax increase, the more new revenue decreases, yet tobacco’s toll on Wyoming remains the same. 

Continue the support for HB 110 that four legislative committees have displayed.

What do you call the people

who save the lives of3,900 Wyoming kids?

 Wyoming’s 57th Legislature.

 By increasing the state’s cigarette excise tax by 48 cents,

3,900 of our kids will be saved from a life of addiction, disease and death that result from tobacco use.

Now, Wyoming joins the dozens of other states across the nationthat are taking a stand to protect kids.

Thank you for your leadership,Governor Freudenthal

andMembers of the House and Senate.