Cuomo: Pension funds maybe be used as “investment vehicle”

N.Y. governor attempts to clarify method of financing Tappan Zee Bridge

Funding News Wall Street Journal November 29, 2011
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On Nov. 28, New York Gov. Andrew Cuomo said he was still looking at using pension funds to help finance construction on the Tappan Zee Bridge. However, he also was searching for the right words to clarify earlier statements.

The Wall Street Journal reported that Cuomo was talking to labor groups and considering the idea of forming a partnership with private and public pension funds, including New York’s retirement system, to help support the critical project, which is expected to cost over $5 billion. One idea involved a mix of funds supplying at much as $2 billion in equity to get a stake in public assets like the Tappan Zee Bridge. Future toll revenues would help pay the loan back.

When Cuomo was asked about the pension fund strategy on Nov. 28, he said he was looking to use pension funds as an “investment vehicle.”

“Somehow it got mangled that the state comptroller would be investing pension funds, which is not the case,” he said.

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