“Think Tank’s” Poor Research Leads to Poor Conclusions


The Maryland Public Policy Institute (“MPPI”) has published a report by Jeff Hooke claiming that the Maryland State Retirement and Pension System (“System”) paid over a half-billion dollars in management fees in fiscal year 2015, cancelling out the tax revenue the state collected from the lottery and casino industries. And so he frames his poorly researched report with the spurious notion that the fees somehow negated the
state’s gaming revenue. In fact, the fees helped the system generate over $800 million in additional net return, reducing the impact of a poor investment market on state finances. It also misleads the reader into believing that the System’s investment costs are paid out of the State’s General Fund when in fact, they are paid out of the System Trust Fund.

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