State officials are planning to borrow money to pay for public workers’ pensions. But the plan is drawing concern from lawmakers, who say it may be risky.
Gov. Bill Walker’s administration plans to sell up to $3.2 billion in what are known as pension obligation bonds.
The bonds are essentially low-interest debt. The state would use that capital to invest. If investment returns are higher than the bonds’ rate, then the state would earn money.
But members of the Senate Finance Committee on Thursday said they want more time to feel comfortable the proposal makes financial sense.
A 2008 law allows the administration to issue the bonds without legislative approval. But the legislature would have to decide whether to appropriate money to pay off the bonds.
