Legislative Update on Cigarette Fee
The OAFP wanted to update you about the State Supreme Court ruling that the $1.50 per pack cigarette fee is unconstitutional. That leaves a $214 million hole in the state budget. While Gov. Fallin has said that special session is likely necessary, leadership in the House and Senate have been reluctant to go into special session because very little will have changed as far as members voting for any revenue measures.
Leadership has spoken to agencies and most have cash flow that can take them into February, when the legislature would go into session. At that time, the legislature could vote for supplemental allocations or other measures to fix the budget. Some agencies do not have the cash flow necessary.
So it remains to be seen whether the legislature will go into special session or not. In the meantime, things like reimbursements for Medicaid providers will continue to be delayed as the Health Care Authority works to make it through the budget situation.
We at the OAFP will continue to watch the situation and keep you posted.