Gov. Sarah Palin has signed a raft of bills from the legislative session that adjourned in April, including one authorizing Alaska to issue of up to $5 billion of pension obligation bonds.
The bill authorizes the POBs as a tool to manage the state’s more than $8 billion in unfunded liabilities to its Public Employees’ Retirement System and Teachers’ Retirement System.
A bill earlier this year committed the state government to picking up a large share of the retirement liabilities of local governments and school districts.
Palin signed the POB bill last Thursday, and followed up on Friday by signing Alaska’s budget and bond bills.
The state government is awash in revenues driven by the high price of oil, resulting in a pay-as-you-go capital budget that totaled $3.6 billion, even after $268 million in line-item vetoes. Palin Friday also signed a bill authorizing $315 million of general obligation bonds for transportation projects to appear before voters on the November general election ballot.
