Going To Market
Propositions 100 And 102: Two Constitutional Amendments Tweak Our State's Financial Options.
By TW
THE LEGISLATURE placed both Propositions 100 and 102 on
the ballot. The first is a constitutional amendment which spells
out how public retirement-fund contributions can be used by state
government.
Currently, there are four state retirement systems--1) public
safety personnel; 2) corrections officers; 3) elected officials;
and 4) a general program which covers most state employees, university
personnel and public-school teachers. Contributions to these four
systems are now controlled by state law and court decisions. Passage
of Prop 100 would provide one more layer of protection to ensure
the money in the funds is not used for improper purposes. At least
we hope it does. Vote YES.
Passage of Prop 102 would change restrictions on the method by
which the state can invest money from the sale of trust land granted
to Arizona by the federal government at the time of statehood.
Sale and lease of these vast holdings generate revenues primarily
for the public-school system.
Currently, profits from the sale of this land are restricted
to buying "interest-bearing securities" like bonds.
Under Prop 102, 60 percent of these monies could be invested in
stocks, which traditionally have paid a much higher rate of return.
Local attorney Robert Fleming, longtime member of the City of
Tucson's Supplemental Retirement System Board, believes both propositions
are good ideas. He says 61 percent of the city's fund is currently
invested in stocks, and he believes combining stocks and bonds
in a portfolio provides a "mix of returns and short-term
safety."
And, after all, the market will never crash, right? Go ahead,
vote YES.
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