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Washington State Tobacco Settlement Authority, $344.4 million of tobacco settlement revenue refinancing bonds.
Parallel Iron would keep 42.5 percent of any settlement revenue and verdicts, with the rest split between IPNav and the lawyers it hired.
So far, Mr. Dixon said, 17 states have used tobacco settlement revenue as a vehicle for borrowing, 6 of them to address revenue shortfalls.
The use of the tobacco settlement revenue for capital projects is not frowned on by the credit agencies because borrowing is usually done to pay for these projects.
Instead, the states plan this week to enter the bond market, but they would back the bonds with their general fund and use the annual tobacco settlement revenue indirectly to pay the principle and interest.
The most hurtful, though, was the $66,000 decrease in tobacco settlement revenue, Lawrence said.
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Its bankruptcy would imperil the ability of states to continue plugging their budget gaps with settlement revenues.
The bonds would be backed by the tobacco settlement revenues, which would go directly to the corporation.
Seven states have already found an ingenious way of doing this, or are planning to: they get the bulk of their tobacco-settlement money now by selling municipal bonds backed by future settlement revenues.
The bill, to be paid for by tobacco-settlement revenues, would cost $28.5 billion, including $8.3 billion in grants to states for economic development in tobacco counties.Several other plans have been put on the table.
Today, Mr. McCall criticized the governor's proposal to borrow money against future tobacco-settlement revenues as lacking in creativity, and said that it was "outrageous" that Mr. Pataki had delayed negotiation on the transit strike until after the election, as transit union officials have claimed.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com