The Nation : Reagan Signs Budget Bill

President Reagan signed legislation that makes permanent the 16-cents-a-pack federal tax on cigarettes and distributes billions of dollars from offshore oil revenues to the federal government and coastal states. The White House announced that Reagan signed the omnibus budget-reconciliation act shortly after he returned from a brief trip to Baltimore to watch the first game of baseball season. The complex package, designed to reduce deficits by $18 billion over the next three years, makes permanent a 10% cut in highway funds to states that allow drinking before age 21. It also contains a new tobacco price-support program, aid to workers who lose jobs due to imports, and Medicare cost-containment rules.