Treasurer disputes governor's budget proposals for retirement funding

In North Carolina, discussions about the state retirement plan budget have ignited tension between Governor Josh Stein and State Treasurer Brad Briner. Briner has criticized the governor's budget proposal for failing to fully fund the state retirement system, claiming it does not include new money for the plan. The governing board of the state retirement system had recommended an increase of $44.3 million for the upcoming fiscal year, arguing that this funding is necessary to meet the needs of approximately 371,932 state retirees. However, the governor's office argues that Stein's proposal holds the state's contribution rate steady and provides significantly more funds than actuaries deem necessary for the fiscal year 2025-26, amounting to over $380 million in excess funding. Briner contests this assertion, stating that maintaining the contribution rate equates to a reduction in support for already-promised benefits. He attributes the state retirement plan's lagging investment performance to a lack of effective management. In response, Briner is advocating for the creation of a new board of professionals to oversee retirement system investments, a model that is common in at least 47 other states. Meanwhile, in Oklahoma, the state treasurer Todd Russ has raised concerns about legislative measures that could further the controversial practice of environmental, social, and governance (ESG) criteria, particularly in relation to the oil and gas industry. A proposed amendment to the Energy Discrimination Elimination Act of 2022 would remove the treasurer's enforcement authority and transfer it to the state Attorney General's office, raising questions about the oversight of financial institutions investing in the state. Russ asserts that this shift undermines the state treasurer's constitutional role concerning investment interests. He has emphasized that the focus should remain purely on financial performance without political interference. As these budgetary and legislative matters unfold, the implications for state retirees and investment practices are coming under increased scrutiny.