La. to get $1.2 billion in tobacco deal sale
As expected, the state will get $1.2 billion to help finance key state services by selling part of its share of a national tobacco settlement this week.
The state will collect the money on Wednesday, state Treasurer John Kennedy said.
Louisiana is one of 46 states sharing in a long-term settlement of lawsuits over the public cost of treating tobacco-related illnesses. The state expects to get $4 billion in the next 25 years.
Earlier this year the Legislature approved plans to use 60 percent of the money, $2.4 billion, to pay off $1.2 billion raised by the sale of bonds on Wednesday. Backers said the move was designed to protect the state against any financial collapse of tobacco companies before it collects all the money owed.
Kennedy said that, under the plan, $918 million will be placed in a Millennium Trust. Interest earnings will be used each year for state education and health programs.
Another $102 million goes to public schools, and $50 million will be placed in another fund for health care and education programs.