• Font Size    

CBS4.com Top Videos

Burned Teen's Family Staying Positive
E-mail

Close Window E-mail This Page

State Panel May Borrow From Fla. Tobacco Fund

Required fields are marked with an asterisk(*)

The information you provide will be used only to send the requested e-mail and will not be used to send any other e-mail communications. Read more in our Privacy Policy

Send E-mail

   Print     Share +   
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.

(© 2009 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

Business and economic information you need to know

© MMIX, CBS Television Stations Inc. All Rights Reserved.