West Virginia elected officials are debating the merits of a state law forcing the West Virginia Investment Management Board, Charleston, to loan $150 million to a state prison system.
In two letters to fellow board member Gov. Cecil H. Underwood, West Virginia State Treasurer John D. Perdue said the state could save millions by issuing general obligation bonds at a lower rate than what it will pay to the state pension system. Moreover, he said, the investment management board could potentially earn a higher return through other investments.
He asked Gov. Underwood to call a special session of the state legislature to put a bond referendum on the state's fall ballot.
In a follow-up letter to Mr. Perdue, Gov. Underwood - who helped get a law passed by state legislators requiring the loan - declined to call the special session
The West Virginia Board oversees $4.5 billion in pension and other long-term investments.