Skip to main content

Minnesota to give up $1B in tobacco bonds to plug budget deficit

The state government will only get about half of that sum by asking for the money now in order to temporarily plug the state's budget deficit. Gov. Mark Dayton and lawmakers voted to borrow against the tobacco money in order to avoid tax increases and additional spending cuts.
  • Author:
  • Updated:
    Original:

The state government will only get about half of that sum by asking for the money now in order to temporarily plug the state's budget deficit. Gov. Mark Dayton and lawmakers voted to borrow against the tobacco money in order to avoid tax increases and additional spending cuts.

Next Up

Screen Shot 2022-09-28 at 3.36.57 PM

Scott County attorney candidates differ on marijuana possession

Scott County is one of a few Minnesota counties where the incumbent prosecutor is facing a challenger in November.

Screen Shot 2022-09-23 at 10.21.38 PM

Teen charged in shooting outside of Richfield football game

Due to the age of the suspect, the case won't be made public.

Screen Shot 2020-02-06 at 9.05.08 AM

Twin Cities Summer Jam no more: popular festival brought to an end

The festival noted how the land they host camping on has recently been sold.

image

Expect major traffic delays on Renaissance Festival's final weekend

Scott County officials said road closures will be to blame.

Voting survey vote election

Ramsey County sends out ballots with deceased candidate on it

The county said it's addressing the issue with the Minnesota Supreme Court.

Screen Shot 2022-09-28 at 12.30.28 PM

New haunted house experience coming to Inver Grove Heights

The exhibit will feature family-friendly and 18+ events.

Wayzata High School

Niche rankings identify best Minnesota schools, districts

Eden Prairie has schools ranked in both the private and public categories.

unnamed

Walker, The Current announce end of Rock the Garden festival

The Walker Art Center and Minnesota Public Radio announced the festival will retire so the organizations can dream up new events.

Related

Minnesota sells $757 million in tobacco bonds

The state plans to repay the bonds through future money from the tobacco settlement. The decision to sell the bonds played a key role in resolving the budget crisis that led to the state's historic government shutdown this summer.

Slow growth means Minnesota will likely face another budget deficit

The state's top economist says growth just isn't what it needs to be to keep the state in the black. The governor and the Legislature based their previous budget deal on growth of about 3.2 percent. Unfortunately, that's not what we're seeing, and that means Dayton and legislators will likely have to wrestle over another deficit soon.

Tobacco compliance reaches record high

The Minnesota Department of Human Services reports 97.6 percent of retailers checked selling tobacco products are following underage tobacco laws. In order to receive federal funding for prevention and treatment efforts, Minnesota is required to have a least an 80 percent compliance rate. During the 12-month survey, law enforcement agencies issued about 600 citations to store owners.

Why is Minnesota now forecasting a budget deficit?

It's the first time since 2013 the state is projected to lose money.

Republicans introduce bill to raise tobacco tax

A bill from two senators would raise the tobacco tax from 35 percent to more than 47 percent. The money would go toward the state's general fund.

Republicans want to use state budget reserve to pay off debt to schools

Minnesota has borrowed more than $2 billion from its schools to cover recent budget deficits. A group of Republicans says now that the economy is stronger the state should pay off that debt with money in reserve. But Governor Mark Dayton says raiding the reserve fund could leave the state vulnerable if the economy heads south again.

DFL lawmakers: No more borrowing against the state's tobacco settlement

One method off the table -- selling more tobacco bonds. House Democrats say the state cannot borrow against its multi-billion dollar tobacco settlement again.