Trustees of Louisiana’s Tobacco Settlement Financing Corp. on Monday gave preliminary approval to a proposal by Gov. Bobby Jindal to refund $823.1 million of bonds supported by the state’s portion of the 1998 master settlement agreement with cigarette companies.

Commissioner of Administration Kristy Nichols said the refunding should provide savings of $75 million to $85 million. The savings from lower interest rates would be allocated to a program that provides state-funded college scholarships. The program currently receives more than $100 million a year of general fund revenues, she said.

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