Herbert said he's a fiscal conservative, and must be convinced that tax increases are the only way to plug critical budget holes. "And we aren't there yet. It's premature" to talk tax increases. In fact, he said, even talking about a tax increase could harm Utah's economy "as we seem to be rounding the corner" toward a rebound. "I understand that the Legislature (appropriates) every dime in the budget, and they will create a budget as they see fit."

Rep. Paul Ray, R-Clearfield, says in any case, he will run, again, a tobacco tax increase bill next session and expects the normal opposition.

One tobacco firm, Altria, has given Utah candidates, political parties and leadership PACs more than $200,000 since 2003, according to the National Institute on Money in State Politics.

Tired of the annual battle against the tobacco lobbyists and their political contributions, Ray's bill would peg Utah's state cigarette tax at 1 cent per pack above the national average of state tobacco taxes, adjusting automatically each June 1.

At the current national average, that would be an increase of $1.31 cents per pack, bringing in around $30 million a year more, Ray said. (The current Utah cigarette tax is 69.5 cents per pack.)

The groups pushing a tobacco tax increase say Utah should raise its tax substantially not to offset budget problems, but for health reasons.

The last time Utah raised its tobacco tax, in 2002, it went up 18 cents per pack. At that time, only 12.8 percent of Utahns smoked, the smallest in the nation. Still, that tax increase caused a drop of Utah smokers by 10 percent, statistics presented to the Tax Review Commission show.

Utah spends $104 million a year on Medicaid costs just for tobacco-related diseases, the TRC was told, or $63 per adult in the state each year. So the cost of Utahns smoking affects us all, Ray says.

"I want those smoking to stop, those who don't not to start," says Ray. "And raising the tax does that."

Adds Ray: "Yeah, $30 million or more to help the state budget is good, but it's not the reason to" significantly raise the tobacco tax.

Contributing: Lee Davidson

E-MAIL: bbjr@desnews.com