SACRAMENTO – One of the nation’s three largest credit rating agencies, Moody’s Investors Service, issued a positive report on the newly proposed pension stabilization plan by Governor Brown and Gubernatorial candidate John Chiang.
Chiang and Brown partnered on this obligation to drive down California’s $59 billion unfunded pension obligation – which has the potential to save $11 billion in taxpayer dollars.
“Without having to reach deeper into the pockets of taxpayers or the public workforce who serves them, we can start paying off our highest cost debt and, at the same time, strengthen the state’s credit. Every dollar we can avoid paying in pensions costs or interest to Wall Street is a dollar that can go to education, healthcare and public safety,” said Chiang
It is a fiscally prudent action that could drive down California’s $59 billion unfunded pension obligation by $11 billion over the next 20 years.
Moody’s analysis also confirmed the following: “Unlike a pension bond, the proposal would effectively borrow from the state’s own savings and at a lower rate than if it issued taxable bonds to fund the addition pension contribution.”
The report was timely as Chiang was wrapping up a stop on his one year road trip in Lake Tahoe where he met with experts on the environmental issues, California’s water infrastructure and shared his vision of continuing to lead this state with the same integrity, honesty, transparency and fiscal responsibility he has as Treasurer.