From “Seven Days”, April 8, 2020
Treasurer Reassures Retirees Pensions Will Be Paid
The good news, according to Treasurer Beth Pearce, is that the state has enough money — at least for now — to pay its bills.
Throughout the year, the state's cash position ebbs and flows as revenue comes in and payments are made. The next big outlay is scheduled for April 30, when the state is set to distribute $130 million to school districts. "We will be paying that on time and without disruption," Pearce said.
To provide an additional backstop, Pearce is calling on the legislature to extend the period during which she can borrow from restricted state funds to make payments. "It's like borrowing from yourself," she said. "It's cheaper than going out for a line of credit."
Pearce also oversees pension funds for state workers, teachers and municipal employees. Those were worth $4.6 billion at the end of the February — before the stock market tanked. The treasurer said she hasn't yet received an end-of-March update.
"They're gonna take some hits, and there's gonna be some volatility in the markets continuing," she said. "But we're long-term investors. We see things in a 30-year horizon. We have more than enough money, I want to assure retirees, to pay retirement bills."