CHICAGO — Iowa would issue $130 million of revenue bonds for a new prison and about $200 million of tobacco bonds under proposals contained in Gov. Chet Culver’s $6.4 billion fiscal 2009 budget unveiled this week.

The state in 2005 sold $800 million of new-money and refunding bonds secured by a portion of its $1.8 billion share of the 1998 Master Settlement Agreement between most states and the major tobacco companies. The deal restructured the state’s $650 million 2001 sale, leaving the state with $1.4 billion of outstanding tobacco bonds.

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