1889 Institute: Sell Unneeded State Assets to Shore up State Pensions

Sell Unneeded State Assets to Shore up State Pensions By Benjamin Lepak Oklahoma’s government owns a lot of property. This includes land and buildings, but it also includes valuable assets like the state-owned electric power company, the Grand River Dam Authority (GRDA). GRDA reports nearly $1.8 billion in assets on its most recent balance sheet, with a “net position” of more than $622 million. Or the Tobacco Settlement Endowment Trust (TSET), which has a $1.2 billion endowment producing roughly $50 million annual investment income. We would be better off if some of these assets were liquidated. Physical assets could be sold or leased to private entities where they would be more economically productive, pay taxes, and relieve the state of maintenance expenses. The proceeds could be directed to long-term funding challenges like unfunded pensions and infrastructure. The needs are not small. Oklahoma faces $7.9 billion in unfunded pension obligations, totaling approximately the entire rest of the state budget. Read more » by Jamison Faught - August 02, 2020 at 02:48PM

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