122nd MAINE LEGISLATURE
		LD 1448		LR 1954(01)
	An Act To Stabilize and Strengthen the MaineCare Program
	Fiscal Note for Original Bill
	Sponsor: Rep. Pingree of North Haven
	Committee: Taxation and Health and Human Services
	Fiscal Note Required: Yes
Fiscal Note
					Projections	Projections
			2005-06	2006-07	2007-08	2008-09
Net Cost (Savings)
	General Fund		$6,046,898	$8,424,964	$8,198,969	$7,934,437
Appropriations/Allocations
	General Fund		$69,000	$0	$0	$0
	Other Special Revenue Funds		$55,691,607	$80,134,796	$79,546,776	$78,893,656
Revenue
	General Fund		($5,977,898)	($8,424,964)	($8,198,969)	($7,934,437)
	Other Special Revenue Funds		$55,691,607	$80,134,796	$79,546,776	$78,893,656
Fiscal Detail and Notes
	Increasing the cigarette tax by $1.00 to $2.00 per package of 20 cigarettes and dedicating the equivalent of 1/2 of the total revenue to the MaineCare Stabilization Fund will increase Other Special Revenue to that fund by $55,630,583 in fiscal year 2005-06 and $80,045,407 in fiscal year 2006-07.  This bill will also decrease General Fund revenue by $5,977,898 in fiscal year 2005-06 and $8,424,964 in fiscal year 2006-07 due to the net impact of a projected decline in cigarette tax revenue that would remain credited to the General Fund and an increase in sales tax collections.  Maine Revenue Services will require a one-time General Fund appropriation of $69,000 in fiscal year 2005-06 to support the administrative costs associated with this change.  This estimate assumes the bill is amended to reflect a tax rate of 100 mills per cigarette and to eliminate the benefit associated with the discount rate.
	Assumes the initial allocation for the MaineCare Stabilization Fund is set at the level of cigarette tax revenue estimated to be deposited in the Fund. The amount of additional revenue and offsetting collections specified in the bill  to be deposited in the fund cannot be determined at this time.