Ohio nets billions for schools with tobacco bonds sale

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COLUMBUS – The nation’s largest sale of tobacco bonds has landed Ohio $5.05 billion to build schools and pay for an already promised property tax cut for senior citizens and disabled residents.

Gov. Ted Strickland announced completion of the sale Monday morning. The sale and the cash it brought were not unexpected. The Legislature approved the sale as part of the governor’s two-year budget, which began July 1.

“The goal of our budget was to live within our means and invest in what matters, and a successful tobacco securitization was an important part of achieving that goal,” Strickland said. “The tobacco bond sale allowed us to invest in tax cuts for our seniors and new schools for our children.”

State Treasurer Richard Cordray said the state has received its check and the fund is drawing $650,000 per day in interest. He said the sale reduces the state’s risk in the profitability of tobacco companies. He said individuals and investment companies, the buyers of the bonds, are willing to take that risk. He said an increase in smoking bans and employers cutting back on employees who smoke will affect the future of tobacco companies.

“It’s almost as if we held stock in the tobacco companies,” he said.
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http://www.timesreporter.com/index.php?ID=74700&r=0

------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------It looks like the Democrats really delivered on this one. Ohio got a better deal than other states.

[Kolesar]

1. & tax cuts for Ohio's most active voting block--seniors

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2. I don't think the tax cuts are going to work as intended

The idea was that seniors would be willing to vote for school levies if they had a little more money.
That is not translating with the seniors I know. They have no intention of using their windfall for
schools. Money was never an issue for most of them in the beginning; they just used that as an excuse for
voting no.

[liberalnurse]

3. kick

[liberalnurse]

4. kick for Ohio kids!

and public education!