Voters should say yes to House Joint Resolution 4202, a proposal to allow greater flexibility in the investment of state funds.
HJR 4202 would amend the state constitution to allow the Legislature to decide whether to remove current restrictions on a small portion of the state’s long-term investments. Although state pension funds and most accounts can be invested in private holdings as stocks and mutual funds, the state constitution forbids putting any of about 3 percent of the funds in private companies or organizations. The limitations cover a number of state funds, many of them obscure.
Opponents worry that increased risks in the financial markets could cause losses. All investments would be overseen by the State Investment Board, and the board has seen some losses to portions of its investments in recent years as the markets stumbled. But, as supporters like former Gov. Dan Evans argue, the board’s overall track record is good.
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