Letter: Tobacco money wishful thinking
State Treasurer Brian Krolicki’s plan to “jump start its tobacco money program…by selling bonds” (Dec. 17 issue) should receive the wishful thinking award. Quote: “We could actually sell bonds against these payments” (translated receipts) and further in the article, “We would have our money in the bank and, if there’s trouble down the road it will be absorbed (lost) by the bondholders.” Also, “It shifts the risk that the payments might decrease or even stop if legal problems for tobacco companies continue to mount…could force tobacco companies into bankruptcy.”
Does he really believe that prospective purchasers of the “jump start” bonds are so naive that they would assume the risks, as stated, without a proportionately high interest rate or a guarantee of payment by the state? And wouldn’t that rate be higher than that earned on the “jump start” money referred to as “a large amount of money?”
Mr. Krolicki seems to be engaged in “creative accounting” and is counting his chickens before they’re hatched and all without risk(?) and why is there such a risk to implement the funding of programs, some of which are outside the original purpose of the “tobacco money,” which was to reimburse the state for medical costs incurred by disabled people whose health was destroyed due to their use of tobacco products.
Apparently we have already accepted Governor Guinn’s plan for scholarships which had nothing to do with the original purpose of the funds to be provided. Is it not possible that the Governor’s background in the field of education has biased his thinking and the setting of priorities?
What it all comes down to is the politicians just can’t wait to get their hands on that money immediately, regardless of the long range costs.