By Phillip Brownlee
March 30, 2016

State budget director Shawn Sullivan hasn’t ruled out the possibility of the state bonding its future tobacco settlement payments in exchange for upfront cash. Though such a move might help the state get through its current budget problems, it would be costly. One “securitization” option would provide the state with about $782.5 million upfront, but it would have to pay bondholders $1.2 billion in principal and interest, and the state wouldn’t receive annual settlement payments again until 2029, the Kansas Health Institute News Service reported. It’s no wonder Senate President Susan Wagle, R-Wichita, called the bonding idea “a desperate move.”

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