The four legislative leaders today sent a joint letter to the California Hospital Assn. expressing concern that a proposed ballot measure to increase the tobacco tax could put the state in violation of an agreement that settled nationwide litigation against the industry. That would lead to the forfeit of California's share of the settlement money from that lawsuit and force the state's general fund to repay bonds floated during the Davis Administration that essentially mortgaged that 25-year revenue stream to help bridge the state's budget deficit.
SacBee 02/17/06
39 posted on 02/18/2006 7:34:46 AM PST by Amerigomag
The four legislative leaders today sent a joint letter to the California Hospital Assn. expressing concern that a proposed ballot measure to increase the tobacco tax could put the state in violation of an agreement that settled nationwide litigation against the industry. That would lead to the forfeit of California's share of the settlement money from that lawsuit and force the state's general fund to repay bonds floated during the Davis Administration that essentially mortgaged that 25-year revenue stream to help bridge the state's budget deficit.
I was hoping there had to be a cap on this Tobacco Settlement. How much blood do the lawmakers expect to siphon from a smoker?!
54 posted on 02/18/2006 8:20:29 AM PST by SheLion
(Trying to make a life in the BLUE state of Maine!)