A study was released yesterday detailing how Ohio can positively impact the budget deficit by focusing on tobacco-tax increases.

Distinguished Professor Frank J. Chaloupka of the University of Illinois issued one of the studies that demonstrates that state cigarette and other tobacco tax revenue are among the most predictable, steady and reliable revenues that Ohio receives. This study, titled “A Significant Cigarette Tax Rate Increase In Ohio Would Produce A Large, Sustained Increase In State Tobacco Tax Revenues", found that while those revenues do decline gradually as smoking and other tobacco use declines, the reductions in revenue are modest, predictable and offset by the related reductions in public and private sector health care and other economic costs caused by smoking.

“Smoking declines produce enormous public and private-sector savings that more than offsets any revenue reductions that Ohio would experience from fewer packs being sold,” said Chaloupka. For example, the report states a decline of 1 percentage point in adult smoking rates will save Ohio $837.9 million in health-care costs, including $148.5 million in state Medicaid costs.

To read the study click here.