While state lawmakers quibble over 20 cents – two dimes thatmany wouldn’t even bother to pick up if they were dropped – thereis more than “pocket change” at stake over how Mississippi will payfor a variety of services if the tobacco tax is not increased.

House and Senate negotiators last week missed a legislativedeadline for action when they could not agree on whether to raisethe state’s cigarette tax by 80 cents, which representativessought, or by 60 cents, an amount preferred by senators. Efforts torevive discussions over increasing Mississippi’s 18 cents per packtax, the third lowest in the nation, have so far beenunsuccessful.

The tobacco tax talk breakdown is a far cry from early sessionindications that the only uncertainty about an increase was not”if” but only “by how much.” Even Gov. Haley Barbour had gotten onboard with an expected tax increase.

An obvious fact – and the problem with the current stalemate -is that if the cigarette tax is not raised, it’s guaranteed that noincrease in revenue will be coming in to coffers to pay for stateneeds and services.

Raising the tax will bring in more revenue. But as we’ve saidearlier, at some point the high cost of smoking will eventuallyprompt some people to quit.

That will mean less revenue coming in from the tobacco tax. Andknowing that the revenue stream will be unstable is why lawmakersshould not plan to use tobacco tax-generated funds on recurringexpenses.

With tobacco tax hike plans stalled, lawmakers are looking toother sources to plug burgeoning budget holes.

One of those places is the state’s “rainy day fund.” But forsimilar reasons as tobacco tax revenue, “rainy day fund” moneyshould not be used to cover year-to-year expenses.

In fact, “rainy day” money is really “one-time” money thatshould be use sparingly in these uncertain times. The temptation isgreat to use it now in these rainy days, but wise stewardship sayskeeping a strong cash reserve is vital to the state’s financialstrength.

Therefore, lawmakers should do everything possible to return tothe bargaining table and reach an agreement on increasing thetobacco tax. Failure to compromise over a 20-cent difference willonly put more pressure on the state’s wallet.