Risky scheme? (97th Assembly Update)
Fox Head takes on Roger Danielsen’s defense of the school board’s pension investment scheme. Danielsen, of course, is the disgraced former schoolboard member who was forced to resign before he was recalled who is now seeking the Democratic nomination for assembly in the 97th Assembly District. Fox Head finds Danielsen’s defense of the investment plan insufficient and calls for a thorough audit of the plan.
Ahh yes, the fact that the fund made money, on the same token Danielson fails to mention that the underlying investment has dropped in value that the taxpayers get to help inject 13 to 15 million into the plan. All because the district made a bad move with the investment. Of course they will try to redirect that as well by saying we will borrow for that injection of cash, but who gets to pay back the interest and principal on that loan? The taxpayer, we just get to pay later rather than sooner.
By the way a few days ago I called this a Margin call. Perhaps it is perhaps not. If you look at my explanation of pensions, we get to make up the difference because of the loss of value, and the very fact that we have to make up the collateral would lead us to believe that this is indeed a margin call. If you prefer a cash injection to level off the collateral. Either way we still pay.
Definitely worth reading the whole thing.
Meanwhile, one of Danielsen’s opponents in the primary, Ruth Page Jones, has her website up and has announced her first fundraiser event. We’ll see how serious the Democrats are by the number of state vehicle bingo cards we can fill out in the parking lot.
Update! I see Steve Schmuki has his website updated from his last run. I don’t see a site yet for disgraced-former-school-board-member Danielsen. Meanwhile, the local Democratic party has an actual website button on their front page directing you to Ruth Page Jones’ website, something missing for the other candidates.