WSYR-TV explains Economics 101:
The governor wants legislators to return to Albany and balance the budget before the end of his term. Some of the $315 million budget gap come from lower-than-anticipated cigarette sales tax revenue, despite a tax increase last July.
Many smokers have quit, and many are taking advantage of the tax free status of cigarettes enjoy on reservations.
"I just go to the reservation now and get them instead of buying them downtown where it's maybe a little more inconvenient," said smoker Leanne Harper.
Lawmakers increased the tax in order to quickly raise more revenue for the cash-strapped state, but it seems to have backfired.
In June, 48 million packs of cigarettes were sold. The month after the tax hike, the total dropped to almost 29 million.
That number remained level through October. The drop parallels a previous decrease in 2008, when the state hiked the tax by $1.25.