A possible increase in federal tobacco taxes and other factors have the state of Ohio anxious to sell off its future tobacco-settlement payments in exchange for a lump sum, the Associated Press reported July 24.

State officials handling the proposed sale of up to $18 billion in future payments to yield $5 billion now said that the federal tax proposal, lawsuits against tobacco companies, and the unpredictable nature of the bond market argue in favor of a quick selloff.

"Five years from now, 10 years from now, smoking bans are kicking in, taxes may change, maybe court decisions," said state Treasurer Richard Cordray. "If the tobacco companies are not profitable, Ohio would be out its money. But if we cash in now, we will have our money and we will shed the risk."

Ohio governor Ted Strickland wants to use the money to build schools and give elderly and disabled residents a tax break.