Commentary
The California legislature is trying to figure out what to do with the cornucopia of wealth from the expected $97.5 billion surplus for fiscal year 2022-23, which begins on July 1. Here’s a new idea to throw into the mix: Create a sovereign wealth fund.
The Investopedia definition: “A sovereign wealth fund is a state-owned investment fund comprised of money generated by the government, often derived from a country’s surplus reserves. SWFs provide a benefit for a country’s economy and its citizens. The funding for a SWF can come from a variety of sources. Popular sources are surplus reserves from state-owned natural resource revenues, trade surpluses, bank reserves that may accumulate from budgeting excesses, foreign currency operations, money from privatizations, and governmental transfer payments.”…