Angelides wants to tap pensions for infrastructure


On Monday Phil Angelides proposed investing up to $15 billion of California's massive public employee pension funds in infrastructure projects. Senate leader Don Perata, D-Oakland, and Assembly Speaker Fabian Nunez, D-Los Angeles, said they support the proposal as a necessary tool to infrastructure bonds planned by the governor and lawmakers. Through the proposal, the state pension fund money would be used to make positive chabges to the state's water supply, bridges, toll roads, tunnels and energy transmission, and speed the movement of goods out of ports.
According to Angelides "We need to find innovative ways to finance infrastructure beyond general obligation bonds and beyond traditional government finance mechanisms." The pensions would compete with private firms such as Sydney-based Macquarie Infrastructure Group,which is the worlds largest developer of toll roads. It is expanding into the United States which is starting the trend to have states and local governments think of ways to raise money for roads and other than kiking taxes.
The California Public Employees' Retirement System and the California State Teachers' Retirement System manage a combined $337 billion portfolio. Angelides proposed public works investment would involve just 5 percent of the funds' money. Angelides is looking very good due to the fact that Schwarzenegger proposed a $222 billion public works spending plan earlier this year, but the Legislature hasn't agreed to put any of the $68 billion in needed bonds on the ballot.


Insidebayarea.com
By Steve Geissinger, SACRAMENTO BUREAU; April 4th, 2006