First, the purpose of the Kentucky Asset/Liability Commission is to develop policies and strategies to minimize the impact of fluctuating interest rates on the Commonwealth's interest-sensitive assets and interest-sensitive liabilities.
What that means is that they can issue bonds for all of state government. They go to the financial markets and borrow money which your tax dollars pay back.
Secretary of the Finance and Administration Cabinet Jonathan Miller
Attorney General Jack Conway
State Treasurer Todd Hollenbach
Executive Director of the Office of the Controller Edgar C. Ross
State Budget Director Mary E. Lassiter
So far we have three things:
1. ALCO issues bonds.
2. Politicians don’t do their job.
3. Fitch rates bonds.
NEW YORK--(BUSINESS WIRE)--Fitch Ratings has assigned an 'AA-' rating to the following Kentucky Asset/Liability Commission (ALCO) bonds:
The bonds are expected to be offered through negotiation on or about Feb. 23, 2011. Fitch has also affirmed the 'AA-' rating on approximately $7.1 billion of appropriation bonds issued by Kentucky agencies. The Rating Outlook is revised to Negative from Stable.
The bottom line here is that a monumental number of lazy and gutless politicians in both the Executive and Legislative Branches have so totally underfunded the Kentucky Retirement System that it is now going to start costing the state more tax dollars to borrow money.