Lawmakers Agree To Refinance Louisiana’s Tobacco Bonds

Lawmakers are planning to use the state's tobacco settlement money for next year's budget.

Lawmakers in the joint budget committee gave unanimous approval to the measure that would refinance Louisiana's tobacco settlement bonds to put million of cash into next year's budget, even though Louisiana State Treasurer John Kennedy criticized the move.

Kennedy says that Governor Bobby Jindal's administration pushed for the refinancing to plug the state's budget shortfall.  Kennedy says all it does is shortchange Louisiana in the long run because we would lose loads of money over the years.

Commissioner of Administration Kristy Nichols says the state will save about $140 million dollars over three years.  She disagreed Kennedy's claims.

The refinancing still needs approval from the Bond Commission.