KINGSPORT, Tenn. – Efforts to pass a 40-cent cigarette tax increase in Tennessee broke down Thursday. Republican leaders in the state legislature and Democratic Gov. Phil Bredesen were unable to agree over cigarette tax initiative to help fund his education funding overhaul.

Those GOP leaders – Lt. Gov. Ron Ramsey and House Republican Leader Jason Mumpower – said Senate Republicans want a smaller increase staggered over three years. “I just don’t see how we ever get to the 40 cents,” Ramsey said to the Kingsport Times News.

Gov. Bredesen is seeking the cigarette tax hike to help fund at least half of his $475 million overhaul of the state’s Basic Education Program (BEP).

Mumpower and House Republican Caucus Chairman Glen Casada have called upon Bredesen to submit a budget with no new taxes. Mumpower noted that in addition to the $300 million surplus, the state has a $497 million Rainy Day Fund, plus millions of dollars in other recurring and one-time revenues.

“There’s $1.5 billion in new revenue on the table,” Mumpower told the newspaper, adding, “That revenue can be used to completely fund the BEP program that the governor is talking about. It can be used for a significant rollback in the sales tax on food, a salary increase for state employees, capital projects and an operation increase for higher education.”