Lottery Funds Show State Is Terrible Investor
When Oregon politicians pretend to be experts on venture capital investing, it ends up costing the state millions of dollars in education money.
This is exactly what is going on with the Oregon Growth Board, a project of the Oregon Business Development Department. Tasked with generating a return on investment by financing venture capital funds in Oregon, the Board receives 10% of state lottery profits that are supposed to be apportioned to a state education endowment fund. Unfortunately for students, the Oregon Growth Account boasts a measly 1.5% return on investment over a 15-year period…
Perhaps the Oregon Growth Board would have a more reasonable ROI if they just flew to Vegas and put our education money all on red.
Does That Mean They Stop Investing?
State Treasurer Ted Wheeler has shifted his position on energy investments…
Wheeler…recently announced he would (1) seek to double Oregon’s investments in renewable energy…
“As a fiduciary of Oregon’s $90 billion portfolio, I am responsible for choosing investments that financially benefit our taxpayers, schools, communities and retired public employees…”
No – It Means They Do More of It
Oregon Legislature approves state-run retirement plan
Legislation that would create a state-sponsored retirement savings program is heading to Gov. Kate Brown for final approval.
House Bill 2960 requires businesses that don’t offer a retirement plan to automatically enroll employees in the state program and deduct a portion of their wages for it.
We Respond & Your Comments
So these guys can’t earn much more than some junk bond funds when they have buckets of lottery buck to invest.
They actually do worse on “Green Energy” investments. Think Redco, where they blew $11.8 million in tax credits. Or the Small Scale Energy Program, where they’re smoking about $20 million over 5 years.
But did these Warren Buffett wannabees learn anything? Sure – They learned they could grab 10% of your salary if your employer doesn’t offer a retirement program and “invest it.”
Will they make 1.5% on it? Probably not. Will they use it to bail out some green energy fantasy? Maybe. Will they use it to bail out PERS? Does a bear relieve himself in the woods?
http://www.oregonlive.com/politics/index.ssf/2015/02/oregon_signature_solar_project.html
http://www.oregonlive.com/business/index.ssf/2012/01/oregon_taxpayers_must_bail_out.html
Comments are closed.