Publications

House committee approves $8.1 billion budget plan that boosts school aid, hikes cigarette taxes

Fri, 01 Jun 2012 10:18:00 EST

The state House of Representatives will be asked to vote next week on a new $8.1 billion state budget for the year starting July 1, following the budget's introduction and swift approval by the budget-writing House Finance Committee, shortly before midnight on Thursday.

State House, Senate approve general fund budget and send it to Snyder

Fri, 01 Jun 2012 10:11:00 EST

The state Senate and House of Representatives approved a $7.5-billion general fund budget today, sending the spending plans for 13 state departments to Gov. Rick Snyder. They'll miss a self-imposed June 1 deadline to finish all the budgets because education budgets have not been finalized.

Louisiana Senate passes state budget, but it is expected to face opposition in the House

Fri, 01 Jun 2012 10:08:00 EST

The stage is now set for another budget showdown in the House, where representatives who stripped $268 million in one-time money from the governor's proposed budget only to see it reinstated by the Senate vow to fight to reinstitute the cuts when the budget comes back to their chamber.

June Pension Litigation Update

Fri, 01 Jun 2012 09:45:00 EST

KRISTEN DE PENA

An examination of recent, relevant pension litigation in the states. The report is updated monthly.

Illinois lawmakers put off vote on pension reforms

Thu, 31 May 2012 23:31:00 EST

Tom Cross, the Republican leader of the IL state House of Representatives, announced that too few House Democrats would support the current form of the legislation so he had agreed with Governor Pat Quinn not to call for a vote on it.

Pension legislation gets new life in General Assembly

Thu, 31 May 2012 09:30:00 EST

Illinois House Speaker Michael Madigan abruptly reversed course, promising to remove a key provision from his pension restructuring bill that would have shifted the "normal" cost of pensions for teachers and university employees from the state to local school districts, universities and community colleges.

Money for education among last pieces needed to complete Michigan's state budget picture

Thu, 31 May 2012 09:20:00 EST

Funding for public schools and universities is one area preventing Michigan lawmakers from finalizing the state's next budget plan.

GOP legislative leaders mull state budget

Thu, 31 May 2012 09:14:00 EST

Republican legislative leaders want to have a budget deal to take to the governor by next week, well in advance of the June 30 deadline.

North Carolina House passes budget after heated debate

Thu, 31 May 2012 09:09:00 EST

$20.3 billion plan OK'd after heated debate.

RI state budget headed for first vote

Thu, 31 May 2012 09:03:00 EST

Rhode Island lawmakers are putting the finishing touches on a new state budget proposal.

Pension Fund Asset Allocation and Liability Discount Rates: Camouflage and Reckless Risk Taking by U.S. Public Plans?

Wed, 30 May 2012 13:43:00 EST

This study uses an international pension fund database to compare the asset allocation and liability discount rates of public and non-public funds in the U.S., Canada and Europe. We document that U.S. public funds exploit the opaque incentives provided by their distinct regulatory environment and behave very differently from U.S. corporate funds and both public and non-public pension funds in Canada and Europe. In the past two decades, U.S. public funds uniquely increased their allocation to riskier investment strategies in order to maintain high discount rates and present lower liabilities, especially if their proportion of retired members increased more. In line with economic theory, all other groups of pension funds reduced their allocation to risky assets as they mature, and lowered discount rates as riskless interest rates declined. The arguably camouflaging and risky behavior of U.S. public pension plans seems driven by the conflict of interest between current and future stakeholders, and could result in significant costs to future workers and taxpayers. Find the full study here.

Lansing racing to finish budget

Wed, 30 May 2012 10:20:00 EST

Lawmakers are trying to meet a self-imposed Friday deadline to finish the operating budget for the fiscal year that begins Oct. 1. Conference committees have already struck deals on most state agency budgets, but differences remain over public school funding and appropriations to the 15 state universities.

Fallin inks $6.8 billion budget for Oklahoma government

Wed, 30 May 2012 10:10:00 EST

While the budget for most state agencies were flat and received no increase in state appropriations, the bill did include targeted increases for a handful of state agencies. Overall, the bill represented an increase of more than 3 percent over last year's spending.

Three Hard Lessons from Illinois Public Pension Reform

Wed, 30 May 2012 10:07:00 EST

The Illinois General Assembly stands on the verge of passing an historic public pension reform. After many decades of serial underfunding, the legislature and Governor have finally agreed to act.

Maryland budget measure pressures counties -Moody's

Wed, 30 May 2012 10:03:00 EST

A move in Maryland to shrink a large budget gap by shifting millions of dollars in pension costs to counties will help the state's credit quality, but could hurt local governments' financial health, Moody's Investors Service said.

Calif. 9/11 fund raided for deficits

Wed, 30 May 2012 09:56:00 EST

While 40 percent of the money raised from the sale of speciality 9/11 license plates has funded anti-terror training programs, $3 million was raided by Gov. Jerry Brown and his predecessor, Arnold Schwarzenegger, to plug the state's budget deficit.

Hedge fund got most South Carolina fees while lagging on returns

Tue, 29 May 2012 12:02:00 EST

Mariner Investment Group, a hedge fund founded by a former Bear Stearns executive, charged South Carolina's public pension fund more than any other manager while delivering returns that trailed competitors.

Public Pensions Faulted for Bets on Rosy Returns

Tue, 29 May 2012 11:48:00 EST

Now public pension funds across the country are facing a painful reckoning. Their projections look increasingly out of touch in today's low-interest environment, and pressure is mounting to be more realistic.

NABL Releases "Considerations" from the Public Pension Disclosure Task Force

Tue, 29 May 2012 10:13:00 EST

The Public Pension Disclosure Task Force, convened by NABL, released on May 17, 2012, its considerations for preparing an official statement on disclosure regarding pension funding obligations. The pension funding obligations of state and local governments have received increased attention from the Securities and Exchange Commission, investors, and the news media. In response, the participants in the municipal finance market came together and agreed on guidance for municipal bond issuers and those who assist the issuers so that investors will have all the material information they need to make informed investment decisions.

Senate panel restores $340 million to state budget cut by House

Tue, 29 May 2012 09:40:00 EST

A Senate panel plugged about $340 million back into Louisiana's budget Monday, rejecting cuts demanded by the House that would have fallen heavily on higher education and health-care services.