It appears the idea of a cigarette tax in Kentucky has gone up in smoke. Negotiators have reached a compromise on the states budget, which calls for no tax increases. It does call for a 3% cut in higher education funding and a 1% pay hike for teachers and other state employees. It also includes the ability for local governments to work together to build large projects like roads and then collect tolls to pay for the projects. Both chambers are expected to vote on the budget before midnight Wednesday.