State treasurer reveals new plan to build up infrastructure
Monday, April 3, 2006
Angelides proposes the retirement systems for public employees and teachers invest five percent of their assets - or about 15 billion dollars total - in public works projects the kinds he says would generate income from things like user fees:
Angelides: Toll bridges and tunnels, energy transmission projects and energy conservation retrofits in public buildings.
It's an unconventional but not hare-brained idea, says Brad Barber, a Professor of Finance at UC Davis but the but the bottom line is always getting the best return on investment :
Barber: This is true for stocks, it's true for bonds, and it'll be true for infrastructure as well.
A spokesperson with the state's public employees system agrees, and says this is an issue the board will have to take up.
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