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Using Public & Union Pension Funds

State Job Creation Strategies for 2011

The fundamental challenge in this recession is that the growth that preceded it was a mirage. Bubble era borrowing created a network of financial jobs, real estate jobs and construction jobs that collapsed with the end of the bubble. Many of those jobs will never return.

An extremely high proportion (75%) of job losses in this recession are permanent rather than temporary. States will need to nurture completely new industry sectors and the infrastructure to support those jobs, while the jobless will need retraining in new skills to participate in those sectors.

Taking Action on Job Creation: Invest Michigan! Fund

In the past few years states have become increasingly unwillingly torely on the chance that volatile global investment markets will chooseto invest in their local communities. Instead, states are choosing todirectly invest themselves in local emerging opportunities.  The greatadvantage of direct investment, instead of simply raiding the statetreasury and giving away corporate welfare, is that by making directinvestment in local businesses, states create a financial stake infirms.  If these businesses are successful, they will return equity tothe tax payers that can be reinvested in other projects.  According to the National Association of Seed and Venture Fund, as of 2006, all but six states had state venture capital funds.

State Pension Funds to be Invested in State Job Creation in Florida

Florida Governor Charlie Crist recently signed an economic stimulus plan for the state that redirects $1.95 billion of the state's pension fund into direct investments in Florida's economy. The amount is limited to 1.5 percent of the state's pension money, but even that limited percentage can add up to massive investments in jobs for the state's residents.

In creating the program, legislators and the Governor pointed to the success of similar programs in other states, particularly the California Public Employees' Retirement System (CalPERS), the nation's largest pension fund. A recent study found the California fund's in-state investments had fed an estimated $15.1 billion into in-state economic activity in 2006 and created 124,000 jobs, more jobs than the construction or motion picture industries.

Institutional Investors, Including State Funds, Demand Disclosure on Financial Risks from Climate Change

Companies are required to calculate the risks to their businesses based on a range of potential threats to their business models, but there is currently no requirement that they calculate the potentially catastrophic costs of climate change. A few U.S. companies do so voluntarily, but most do not.

IL: Pulling Money Out of the Sudan

Illinois state law prohibits investments in companies that do business in Sudan. Now, the teacher pension is pulling roughly $130 million in international investments. This is clearly a good move. Investing in genocide is not a moral solution as Divest Sudan makes clear. The beauty of pushing for pension divestment is clear. First, American workers should seek returns that aren't built on the blood of genocide victims.