Indiana's $22 Billion Budget Shuns Tobacco

Carvlin, Elizabeth
April 2003
Bond Buyer;4/29/2003, Vol. 344 Issue 31624, p4
Trade Publication
Indiana legislators approved a 22 billion dollar biennial budget with plans to use about 300 million dollar of revenue bonds for economic development projects, instead of securitizing tobacco settlement funds for the state governor Frank O'Bannon. The legislature refused a tobacco securitization, but instead approved tax credits to spur development and will allow universities to sell bonds for the technology and development programs. The legislature also denied O' Bannon's request to raise appropriations for Medicaid and prisons, instead shifting some of the tobacco settlement funds to health-related costs that could be used to offset Medicaid costs. The legislature opted to use 404570360f the tobacco funds that O'Bannon had hoped to securitize for health-related programs. The budget also offers tax incentives for any airline that may sign up to use the United Airlines maintenance facility in Indianapolis that the airline is expected to vacate. The budget also pays for 165 million dollar of K-12 education programs with general funds that O'Bannon had hoped to fund with securitized tobacco funds.


Related Articles

  • Lawmakers' spring starts as Senate reviews budget. Feigenbaum, Ed // Indianapolis Business Journal;3/17/2003, Vol. 24 Issue 1, p14 

    Discusses the Indiana Senate's review of the state's budget in March 2003. House version of the budget that does not call for any direct general tax increases; Likelihood of supporting a bare minimum General Fund surplus; Senate Republicans' consideration of Department of Corrections issues;...

  • State finances are in a crisis. Keily, Patrick J. // Indianapolis Business Journal;6/18/2001, Vol. 22 Issue 14, p16 

    Ponders on problems and policies relating to the overall wellbeing of Indiana's economy. Budget passed by the state legislature; Revenue forecasts over a two-and-a-half period; Deficit spending.

  • Time to energize. Barkey, Patrick M. // Indiana Business Magazine;Jan2003, Vol. 47 Issue 1, p56 

    Reports on the use of tobacco industry settlement funds to finance Indiana's economic development initiatives. Diversion of funds originally intended for smoking cessation activities; Concerns about the state's budget deficit; Competition for new investments, jobs and residents.

  • Why we live where we live. Marcus, Morton J. // Indianapolis Business Journal;10/18/93, Vol. 14 Issue 29, p7A 

    Stresses the need for Indiana to focus on opportunities available to people in the state as part of its economic development efforts. Fictional conversation between a reader and the author concerning people's preference to live in the state; People's tendency to live near their birthplace;...

  • State exports extend climb.  // Indianapolis Business Journal;10/16/95, Vol. 16 Issue 30, p8A 

    Highlights Hosier and Indiana and how their exports surged in the second quarter of 1995.

  • Development help: Capitalism or piracy? Marcus, Morton, // Indianapolis Business Journal;06/09/97, Vol. 18 Issue 12, p6 

    Opinion. Comments on Indiana's economic development policy. Arguments against subsidies to new firms; Effects of government's support to competition.

  • N.Y., Deadlocked on Tobacco Bonds, Mulls Interim Plan. McKaig, Ryan // Bond Buyer;3/11/2003, Vol. 343 Issue 31590, p3 

    Reports on possible plans of using multi billion dollar in tobacco bonds to help in budget deficit for fiscal 2003 of New York. Proposal for providing security to multimillion dollar in annual payments under the national tobacco settlement; Reason for increase in budget deficit for the state;...

  • L.A. Plans $300M of Debt, But County Thinking Smaller. Finestone, Deborah // Bond Buyer;4/22/2003, Vol. 344 Issue 31619, p25 

    The city of Los Angeles, California plans to issue about $300 million of general obligation and lease revenue bonds in 2004, while Los Angeles County anticipates issuing only about $55 million of short-term paper this year. Mayor James Hahn's $5 billion budget includes a $214 million increase...

  • N.Y.'s $2.3B Tobacco Deal Coming Next Week. Braun, Martin Z. // Bond Buyer;6/2/2003, Vol. 344 Issue 31647, p1 

    This article reports that New York will sell $2.3 billion in tobacco bonds the beginning of the week of June 9, 2003, half of the $4.2 billion in tobacco debt the Legislature authorized to help finance the state's $92.8 billion budget. Under legislation passed by the state, the state...


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics