Nov 20, 2008 9:34 am US/Eastern
State Panel May Borrow From Fla. Tobacco Fund
State Wants To Avoid Unconstitutional Budget Deficit
The Budget Deficit May Exceed $2 Billion
Borrowing From Fund Could Wipe It Out
TALLAHASSEE (AP) ―
The State Board of Administration will discuss a plan to borrow money from the state's tobacco settlement trust fund to help Florida avoid an unconstitutional budget deficit.
The board, which oversees state investments, will meet Thursday.
Gov. Charlie Crist, who chairs the board, and a special legislative committee have the power to borrow up to $1 billion from the fund that invests tobacco money for future use on health care programs. The looming budget deficit my exceed $2 billion.
Borrowing from the fund, though, could virtually wipe it out, says Chief Financial Office Alex Sink, a member of the investment board. It recently dropped in value from $2.1 billion to $1.5 billion due to declines in the stock market.
(© 2010 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)
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