Posts Tagged ‘John Weishan’

Weishan to seek delay in County Grounds deal

Thursday, March 5th, 2009

County Supervisor John Weishan said he will seek a delay in County Board action to sell County Grounds property to the University of Wisconsin-Milwaukee for construction of an engineering school and other facilities.

The deal is to be considered by the County Board’s Economic and Community Development Committee during its March 9 meeting, scheduled at 9 a.m. in room 201-B of the courthouse.

Building an separate UWM engineering school when the research park already exists could create “two taxpayer-subsidized placed fighting over the same piece of meat,” he said. It might make more sense for the school to operate as part of the research park, which includes significant county involvement and land control, he said.

“Why are the taxpayers going to pay to put us in a bad competitive situation?” he said.

Weishan also said the proposed buyer of the property is a private foundation, not UWM itself, a public entity.  He said he wanted to know more about how the foundation would work with the county.

“If I have a problem with a real estate foundation, I don’t know what course of action I can take,” he said.

County pension obligation bonds: too risky?

Tuesday, March 3rd, 2009

The county’s pension obligation bond work group is holding an informational session today (at 9:30 a.m. in room 203-R of the courthouse).  It would be fun to attend just to see if there is a quorum of any County Board committee and then to ask if the meeting has been noticed as a potential County Board committee meeting. It would also be interesting, if there is not a quorum of any committee, to wonder why the hell not and why there is so little interest on the part of supervisors.

County Supervisor John Weishan is skeptical of the plan to issue $400 million in county pension obligation bonds. The county’s proposal is to issue the bonds at 6% and invest the proceeds to get an 8% return. That’s all fine and dandy as long as the county can get an 8% return, but the market hasn’t been kind to investors lately and yesterday fell to a 12-year low. Yes, the market will rise again some day, but when? And what risks should the county take until then?

Weishan’s concern is not only risk, but the county’s plan for the bonds — or more accurately, it’s lack of a plan. If a 95% funded plan is the goal, he said, “this isn’t going to do it.”

In addition, experts on this topic advise that “you have to make a commitment that you’re not going to allow another unfunded liability to develop,” he said. Can the county, with all its huge fiscal problems, actually do that?

Weishan believes that one reason the bond issuance looks so attractive right now is that the timing of the deal and the influx of bond funds, could allow the county to skip a pension payment next year — a payment, according to the JS, that could be as much as $80 million. That one-year break would give the county the illusion of a little bit of financial stability, which County Executive Scott Walker likely would appreciate as he runs for governor.