N E W P A G E
Now into its work, at the third meeting (twice a month schedule), sub-committees created.
The opening meeting of this new Commission announced a summer reading list which can be found on this webpage: https://www.cga.ct.gov/fin/taskforce.asp?TF=20180710_Pension%20Sustainability%20Commission
Please note that written presentations by invited guests online
READING LIST AND OTHER DOCUMENTATION
F.O.I. complaint re: Sub-Commmittees
Since nobody has met as a subcommittee yet, the staff will be sure to post meetings.
NEW LOTTERY "EXECUTIVE DIRECTOR" (left, below)
- Risky? Reliability of Lottery revenue? CT very reliable.
- CT #5 in lottery revenue in U,S,A..
- What percentage goes to players? 60% goes to players...we didn't catch the rest, but this is apparently awesome result.
SAL LUCIANO JUST APPOINTED (not shown)
STATE LANDS: Conservation Easements? Define the problem. Political point -
benefits of non-public control gets rid of patronage? Prioritize? Who can help us?
HOW A BILL BECOMES A LAW INDEED. G.A.S.B. 48, 61. EXPLAINED
"Provocateur" comment - Chairman cannot believe this was such an awesome meeting! Judge is satisfied.
Legacy Obligation Trust (LOT), Lottery, anything else - expand commentary?
- O.L.R. report needed on answer to the question.
- TRS report has
- Treasurer's Office reports exactly how they decide which
properties to "excess" (how about Haddam Land Swap?)
10am to 12:30pm - next meeting on the 31st.
LOTTERY CAN' T BE THERE TODAY SO COMMISSIONERS DID ROUND TABLE IDEA SESSION
Taking advantage of the opportunity, Commission puts forth questions.
State loses control, asks the teachers' union? Next meeting
will be presentations by Treasurer's Office as well as the Lottery
re: Assets available for "Trust" concept.
Cede control of assets? "Our of the box" worth a try!
Lots of questions. Why they are seeking a consultant. Both lawyers - one for C.E.A. and another for Treasurer, we think.
Can't wait to find out why this "out of the box" thinking cannot translate into a silver bullet for CT!!!
Or can it, but no one wants to give up anything?
VERY INTERESTING MEETING
Chair. Steinberg states that research has reached the next phase. Subcommittees actively at work and testing out ideas.
WE"RE WATCHING THIS AFTER THE FACT - ALTHOUGH WE DID WATCH IT ON TV LIVE...MID-WAY INTO NEXT SPEAKER TO THE END.
Hey, almost no problem. Market our cities differently.
Differentiate CT cities. Business by business. Investment
metrics - CT is small but exports a lot.
FAIRNESS OF INCENTIVES - PARTNERING WITH MUNICIPALITIES
Next speaker talk about direct and indirect impact (my own thought
about how many jobs are created by industry (3-1), commercial (2-1) and
"government" (1-1) jobs. " Economic multipliers."
NEW IDEA FROM DETROIT EXPERIENCE - WHY WAIT UNTIL BANKRUPT? BECAUSE STATES CAN'T DECLARE BANKRUPTCY?
A lot is an empty place. But not this meaning of "LOT."
"Working Groups" report in October. Need to be strategic - no fire
sales like Chicago.
QUESTIONS AND FINAL COMMENTS - NEXT MEETING OCTOBER 4TH TO INCLUDE LOTTERY.
More than 3 hr. meeting.
SEPTEMBER 7, 2019
PENSION SUSTAINABILITY COMMISSION
SEPT. 7, 2018 MEETING
Infrastructure asset class. Public-private ownerships. Concession financing. Valuation. (LWVCT in 2011 had Annual Meeting speaker Nicole Gelinas on this subject. Video of her presentation on video.)
Governance, length, JMO apples and oranges between Chicago and Australia.
PRESENTER ON TRANSFER
Into the weeds. Rating agencies. Mike Imber presents...
CREATE A TRUST
Legacy Obligation Construct $15-30k fee. "White Paper"
Optimization of assets; current market evaluation: CONSULTANTS? Comptroller-Treasurer might be able to help...
CAN'T FORGET G.A.S.B. RATING
Don't sell off assets right away. How we account for
this...two categories - money makers/losers; undeveloped assets
and capturing value. Some reaction below.
Commission lawyer-members chime in.
STRUCTURE OF COMMISSION SUB-GROUPS DISCUSSED - FOUR SUB-COMMITTEES:
Capital Assets selection group
NEXT MEETING ON SEPT. 21st...
QUESTION: How broad can recommendations be? Reestablish
credibility. Most interesting discussion from legislators on the
AUGUST 17, 2018 meeting - presentation from Fiscal Stability & Economic Growth Chairs., consultants.
- Structured asset transfers.
- Reduce spending recommendations.
- Revenue pro growth rebalancing.
- Unfunded liability a terrible problem because they have been growing faster than the economy.
- Chicken before the egg. Asset transfer? Feasibility of rebalancing.
- Keep T.R.S. at State level - O.P.E.B. at local.
- Find a way to get teachers into medicare.
Jim Millstein: Illinois and CT not far behind Puerto Rico. (From his time surveying all 50 states working for Tim Geithner.) Washington D.C. now addressing modifications.
- Let's not kid ourselves. 6% return more realistic. $22 billion, 55% underfunded.
- "The magic of compounding" - more assets earning 6% the
better. Increase cash contribution. Or seek to reduce
- Modifying benefits won't get you much.
- Increase asset balance.
- He says "Mike Imber proposed survey of excess CT real estate (land)" was a good
idea. Inventory of built real estate now suggested, off the cuff. (FWIW I've thought of
- Optimize: Undeveloped properties for real estate assets.
- Lottery assignment of their Teachers Retirement System.
- Can you make it more than a wash? Restructured amortization period. The Legislature has some power.
- Australia had this problem and gave bonus to states.
- Changes in U.S. Tax Law being considered. Every state is looking at this.
"Tsuris" or distress, to be avoided.
Privatization now a no-no (in CT it is a union issue). An intergovernmental transfer would avoid this.
IMPACT ON BUDGET? NEW JERSEY EXAMPLE. Changing
assumptions. Volatility. N.J. effective minimum.
Investment bank estimate. "Who the hell knows?"
Chair, quotes Mike Imber a lot
NEXT MEETING: Sept.5, 6 or 7 - beware Jewish Holidays - generally every two weeks (Wednesdays).
OPENING MEETING: http://www.ctn.state.ct.us/ctnplayer.asp?odID=15473
July 24, 2018 first meeting - Sec'y Barnes' power point.
What did one member ask? ANS: "YES, BUT..."
"Are the properties listed on your website (the State website) the actual list of State of Connecticut - owned properties?"
What are some mechanisms to adjust stuff? How about data available on assets?
You could shift funds within the State Budget to make the books balance
(my words here). Data resources now posted - a page from PEW - we
suppose this reflects the timing of investment problem...
HOW DO YOU SUGGEST THIS WILL ALL END? WILL THE LOTTERY FINANCE PUBLIC SECTOR & TEACHER RETIREMENT?
Not joking, Sec'y Barnes describes the act of drowning in debt as we
will be witnessing when the "balloon" payment hits or pops.
2025 is a big year.
...Professor Saulnier explained what would happen when the U.S. no longer had enough gold to back the dollar.
(The currency would then "float"). He drew two lines crossing in
an "X." Turning to the large lecture hall he said: "I
don't want to be here when that happens (which it did, in @1971)"
We are going through the reading list from top to bottom...
- PEW: https://www.cga.ct.gov/fin/tfs/20180710_Pension%20Sustainability%20Commission/PEW%20Report.pdf
- "ECONOMICS 101": https://www.cga.ct.gov/fin/tfs/20180710_Pension%20Sustainability%20Commission/Brookings%20Institute%20-%20State%20Local%20Pension%20Deficit%20Funding%20Primer.pdf
Norwalk HOUR, 9-11-18: https://www.thehour.com/news/article/Wilms-calls-for-structural-changes-to-state-13218719.php
CTNEWSJUNKIE "EXTRA EXTRA":
CT MIRROR: https://ctmirror.org/2018/07/24/panel-seeks-new-ways-slow-skyrocketing-state-pension-costs/