Panel To Discuss Borrowing From Florida Tobacco Fund
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Posted: 9:32 AM Nov 20, 2008
Panel To Discuss Borrowing From Florida Tobacco Fund
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.
Reporter: Associated Press
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TALLAHASSEE, Fla. (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.