Poythress Pledges to Protect State Employees’ and Educators’ Pensions

Poythress Pledges to Protect State Employees’ and Educators’ Pensions:
Barnes Proposes Investing Retirement Reserves in Risky Venture Funds

Responding to media reports, General David Poythress, Democratic candidate for Governor, criticizes former Governor Barnes’ proposal to risk state retirement reserves.

“As Governor, I will not, under any circumstances, gamble the hard-earned retirements of state employees and school teachers in venture capital funding or any other risky investments. If there were ever an instance in which Roy Barnes revealed his true colors, this is it. He can apologize in his TV ads all he wants, but this shows that he hasn't learned from his mistakes and is still out of touch with working folks, state employees and public school teachers.” says Poythress.

Background:

Atlanta Journal and Constitution, Jim Galloway: 06/03/10
http://blogs.ajc.com/political-insider-jim-galloway/2010/06/03/whether-t...

Whether the topic is banks, pensions or teachers — it’s all about Roy Barnes
3:17 pm June 3, 2010, by Jim Galloway

In an interview this morning on WGAU (1340AM) in Athens, former Gov. Roy Barnes expounded on a pair of topics – his own banking interests, and how teacher pensions should be invested.

Radio host Tim Bryant kindly sent us some of the sound – and Barnes’ Democratic rival, David Poythress, sent us a transcript. With his own commentary.

Then there’s the matter of Barnes’ fifth television ad, which debuted today. It’s aimed directly at teachers. But first, the radio interview.

Bryant specifically asked Barnes about charges by Poythress — and other candidates — that the former governor’s proposal to require banks to negotiate with homeowners before foreclosures is hypocritical, because Barnes has invested in banks.

Said Barnes:

“Unfortunately, it’s just personal politics as usual. I’d ask David, is he opposed to the mortgage foreclosure relief that I’m advocating. Why not disagree on issues rather than personalities.

“Now, have I invested in banks? Yes, I have. Over the years, going back to the ’80s. And will continue to do so. I’m not saying banks are evil. I’m saying they have to be responsible. The same way in 2002 that I advocated and pushed through the Legislature what Newsweek called the toughest anti-predatory lending bill in the nation.

“To say, well, you own stock in this or that or the other, and therefore you can’t speak on this issue is kind of saying, if you owned a Chevrolet, and when General Motors got a little assistance from the federal government, you’re supposed to pull that Chevrolet over to the side and park it on the side. Quit attacking the messenger, and start talking about issues…”

Then there was the matter of an Athens Banner-Herald report that – in a closed forum with the Georgia Chamber of Commerce last week – Barnes suggested that the state teacher’s pension system be allowed to participate in riskier venture capital investments.

Said Barnes:

“I’ve had this position for years, it’s nothing new. What I’ve said is that the teachers, you should take the employees retirement fund first to show the teachers that you get benefits from venture capital.

“Now Georgia is the only state in the nation that doesn’t allow this, by the way. Is there more risk? Now you take 1 or 2 percent and invest. Now let me ask you this, if Georgia had invested in the start-up called Apple, would anybody be criticizing that.”

No, Bryant said, but they’d probably be critical if Georgia had invested in Enron. Replied Barnes:

Well, Enron was not a start up… what we’re talking about is technology companies, high tech and bio tech companies that helps to invest. All you’ve got to do is hit one, and it helps bring about the investment increase that you have.

“Now, let me tell you, not only that, but the employees of the state of Georgia, and teachers, as far as this goes, have their retirement guaranteed by the taxpayers. They have what is called a defined benefits program. It is not dependent on how well the investments do.”

One note: Both men probably forgot, but state pension authorities did in fact invest in Enron. And lost their shirts — to the tune of $127 million when the company filed bankruptcy.

Said Poythress:

“As governor, I will not, under any circumstances, gamble the hard-earned retirements of state employees and school teachers in venture capital funding or any other risky investments. If there were ever an instance in which Roy Barnes revealed his true colors, this is it. “

Athens Banner-Herald, Blake Aued: 06/02/2010
http://www.onlineathens.net/node/2016
Barnes runs afoul of teachers, again...

UPDATED ...

Despite the Georgia Chamber of Commerce closing it to the press and even its own membership, a bit of news – or, rather, interesting hearsay – did surface from the double-super-secret Illuminati meeting, um, I mean debate, in Greensboro last week.

Former Gov. Roy Barnes, according to a person who was in the room, spoke in favor of investing state employees’ – including teachers’ – retirement funds in venture capital, a move some might consider risky.

Campaign manager Chris Carpenter said he wasn' there, but Barnes is "not in favor of touching teacher retirement," so he doubts Barnes included teachers along with other state employees in his statement. Barnes told the same thing to Channel 46 recently, Carpenter said, but they didn't include it in their story, and no tape of the debate exists.

Jeff Hubbard, the president of the Georgia Association of Educators, said he confirmed Barnes’ position with two people in attendance. If so, let’s just say that this is not going to help him bring teachers back into the fold.

“It has always been the position of GAE that retirement funds should never be utilized for this purpose,” Hubbard said in an e-mail. “We opposed this measure during his term in office and during the attempts throughout Governor Perdue’s administration.”

Went they went into the profession, teachers traded off higher salaries for the security of knowing their employer wouldn't gamble away their retirement money, Hubbard said. And TRS has done well over the past 60 years the way it is, he said.

Whether it's true or not, educators believe that Barnes is messing with their pensions.