New State Investment Plan

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(Sacramento, CA)
Monday, April 3, 2006

Angelides proposes the retirement systems for public employees and teachers invest five percent of their assets – or about 15 billion dollars total - in public works projects… the kinds he says would generate income from things like user fees:

“Projects like....Toll bridges and tunnels, energy transmission projects and energy conservation retrofits in public buildings.”

It’s an unconventional but not hare-brained idea, says Brad Barber, a Professor of Finance at UC Davis…but the but the bottom line is always getting the best return on investment :

This is true for stocks, it’s true for bonds, and it’ll be true for infrastructure as well.”

A spokesperson with the state’s public employees system agrees, and says this is an issue the board will have to take up.