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.
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The state of Minnesota has completed the sale of $757 million in bonds, which it plans to repay through future money from a tobacco lawsuit settlement.

The decision to sell the bonds played a key role in resolving the budget crisis that led to the historic government shutdown this summer. But, as Politics in Minnesota reports, it hasn't been the most popular plan. Some critics worry it could lead to a pattern of borrowing to fill the state's general fund. Others don't feel the state should be tapping into the tobacco settlement money to plug the budget gap.

The Associated Press says paying back bondholders will cost the state about $1.2 billion over the next two decades.

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