| Spano said he would send legislation to the Board of Legislators as early as next week calling for the county to securitize about $100 million of tobacco money that the county is expected to receive in the years 2011-2029.
Overall, Westchester County is slated to receive $480 million in payments from the tobacco settlement over 25 years.
The bond issue would provide tax relief for county residents next year, and in the future will offset a $40 million loss in state aid, Spano said.
``By coming up with an innovative plan to securitize the money we will get from the tobacco settlement, we can offset this hit from the state and additionally provide a $5 million tax decrease for our residents next year,'' Spano said in written remarks.
For the first 10 years of the settlement, the county would receive about $20 million of payments a year. Spano said the county would use that money to eliminate a financial obligation to the Westchester County Medical Center.
Spano said when he came into office, the county had a large financial burden to the medical center. The administration renegotiated the agreement and reduced the overall subsidy for a $185 million savings to taxpayers. With the tobacco revenues, the county's financial obligation can be reduced to zero, and at the same time, it would have money to help build a new Children's Hospital, he said.
Westchester County would follow in the footsteps of New York City and Nassau County, both of which plan to sell tobacco-backed bonds in November. |
