Minnesota has completed the refinancing of tobacco revenue bonds after the state Supreme Court ruled the move is constitutional.

Minnesota Management and Budget said Thursday the state sold $656 million in state appropriation bonds to refinance the tobacco bonds it sold last year.

Officials say the refinancing will save the state $85 million in present value. The appropriation bonds received a true interest rate of 2.43 percent.

Last month, the Minnesota Supreme Court ruled the state has the constitutional authority to borrow money to refinance the bonds it sold last November using future revenue from its 1998 settlement with tobacco companies.

The state sold $757 million in tobacco bonds to help with a budget gap.