Alaska Gov. Bill Walker halted the issuance of up to $3.5 billion in pension obligation bonds for the $16.5 billion Alaska Public Employees' Retirement System and $8 billion Alaska Teachers' Retirement System.
The sale was authorized by Mr. Walker last month. “While we believe the financial benefits of issuing state pension obligation bonds significantly outweigh the financial risks, we recognize the need for legislative input. I invited the Senate Finance Committee to meet with administration officials and me this week to discuss the transaction. Given their lack of support, I have decided not to proceed with the issuance at this time,” Mr. Walker said in a statement on the state's website.”
Jerry Burnett, deputy commissioner at the Alaska Department of Revenue, said earlier this month that proceeds of the bond sale were expected to be between $2.3 billion and $3.2 billion.
A spokeswoman for the governor's office could not immediately be reached for additional information.