Nevada Gov. Proposes Sale of Tobacco Settlement Fund
Nevada’s estimated $340 million in future payments under the nationwide tobacco settlement would be sold off for less upfront cash under a budget plan proposed by the state’s governor, the Las Vegas Sun reported May 7.
Gov. Jim Gibbons, who wants to balance the state budget without raising taxes, included the selloff of the tobacco funds alongside proposals to open a $160-million line of credit and use federal stimulus money to pay for all-day kindergarten and a senior drug program.
Nevada gets about $40 million annually from the tobacco settlement and stands to do so for the next 20 years unless it is securitized and sold.