NEW YORK–(BUSINESS WIRE)–Kroll Bond Rating Agency (KBRA) comments on the substantial assets many state and local governments control in the research report, “Untapped Resources May Help Fund Pension and Infrastructure Shortfalls.” The report notes the benefits of using assets to fund critical public sector needs and further details the principal credit considerations for state and local governments.
KBRA describes two examples of state owned assets being used or considered for addressing unfunded pension liabilities. Firstly, New Jersey has contributed its statewide lottery enterprise to its pension funds. Also, Connecticut is considering a similar approach with its lottery or other assets. State and local officials face difficult choices with limited resources as they develop programs that use assets to solve critical funding shortfalls.
October 30, 2018