The Democrat-controlled Senate approved the budget with a 34-22 vote on Thursday evening, which will allocate an additional $100 million to higher ed, $85 million for homelessness and $200 million toward pension plans.
The 2022 stock market plunge has taken a toll on some of the nation’s largest state and municipal pension funds, making it harder to pay for future retirement benefits to millions of K-12 teachers and other public employees.
As polluters pay up for absolution, state treasuries and public pension funds might be able to capitalize on carbon offset credits. Public forests and timberland investments could yield untapped value.
Officials in Kansas and Missouri worry that a federal default could severely disrupt a variety of government services that could cause local layoffs, jettison retirement funds, restrict Medicaid access and more.
So far, nine Democrats have officially declared their intention to run for the mayorship. Meanwhile true bipartisan leadership exists at the state level, Ohio's attorney general does double dipping and more.
Disinflation and economic deceleration will dominate state and local budgets and investments. Cash is king, at least for a while. Payroll costs will outrace revenues. It’s going to be a year for muddling through.
Inflation punished Wall Street and Main Street, and public financiers who ignored it squandered billions. Congress passed two bills important to states and localities. And pensions took a hit, but taxpayers won’t feel that pain for years.
When the governor-elect was serving as Montgomery County commissioner, he streamlined the county’s half-billion-dollar retirees pension plan. Some wonder if the state’s retirement plan will get a similar redo.
Inflation is pressuring state and local employers to grant big cost-of-living increases. But they’ll need to keep in mind the prospect of diminishing revenues in coming fiscal years.
Tax-exempt issuers’ costs have shifted upward dramatically this year as the Federal Reserve has pushed interest rates higher to fight inflation. It’s time to re-strategize debt management programs.
Across the nation, the poverty rate among adults 65 and older rose to 10.7 percent last year, the only age group that saw an increase. In Los Angeles County, homelessness in adults 55 and older has risen 20 percent since 2017.
If passed, a bill would divest the state’s pension fund from the 200 largest publicly traded fossil fuel companies no more than two years from the time the bill is enacted. The pension fund is valued at $92.9 billion.
New Jersey lawmakers are fast-tracking a bill that would reform the state’s pension law to tighten criteria under which former government workers convicted of on-the-job misconduct should lose some or all of their pension.
The State Employees’ Retirement System has sunk to $34.5 billion, a quarterly decrease of 8.5 percent. The system funds more than 70,000 older state and public school retirees with pension payments that haven’t changed since 2004.
An audit found that Massachusetts’ third largest city has made progress with the debt in its employees’ pension system, with 39 percent of future obligations covered. But there is still a long way to go to reach solvency by 2033.
Private equity interests have lurked behind the skirts of public pensions to dodge higher income taxes. Now Big Tech moguls are trying to play public servants for patsies to fight stronger federal antitrust laws.
