Pension obligation bonds being pitched as a remedy to funding woes in two states are meeting a mixed fate from lawmakers.
Last week in Kansas, the state Senate passed a bill, by a vote of 21-17, that would authorize the sale of $1 billion in POBs, the proceeds of which would be infused in the Kansas Public Employees' Retirement System pension fund, which is roughly 60 percent funded, with a projected $9.8 billion shortfall.
The $1 billion in new bonds is less than the $1.5 billion that Republican Gov. Sam Brownback's administration had lobbied for.
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