* The pension fund holds much more of its money in cash than other comparable state pension funds and more than its allocation policy suggests. State Treasurer Dale Folwell routinely overrides the policy to prevent “rebalancing.” * Folwell emphasizes steeling the pension plan against stock market downturns. That’s led to the plan missing out on the big stock market gains of the last few years. Returns for the state pension fund are far lower than comparable public pension funds. * Folwell repeatedly liquidated stock to shift money to bonds and cash. *He has lowered the pension fund’s assumed rate of return in stages, which means the state and local governments have had to increase their contributions.
Supporters of the bill — including numerous Republican mayors — say the answer is a clear “yes.” They argue that a number of states, particularly those that rely on service industries and tourism, have seen steep revenue declines, and local governments are facing deeper financial strains as they struggle to expand services with fewer employees.
“Many of our cities have furloughed workers, shrunk their workforce through attrition, cancelled police and fire recruitment efforts, and frozen capital budgets that build community infrastructure — all while absorbing additional expenses to respond to COVID, delivering essential services and reaching out to our communities that have been disproportionately affected,” a bipartisan group of Ohio mayors wrote to federal lawmakers last month.
But congressional Republicans, who also opposed including more state and local aid in the coronavirus stimulus bill approved in December, largely have been unpersuaded. They point to data showing some states outpacing their revenue projections, and argue that sending more financial help to states would unfairly reward those that locked down their economies instead of lifting restrictions on businesses.