Going for Broke: If the state’s $300 million Fund of Funds program doesn’t pay out, taxpayer dollars will cover the losses

(City Weekly)

Imagine that you’ve just been approved for a huge loan. You take the cash from a bank, step into the lobby of a casino and hand out $100 bills to a handpicked team of gamblers—good gamblers: tight-playing poker players and Blackjack experts. As your rounders hit the tables, the deal is simple: If they win more than they lose, everyone can keep playing. But if the winnings don’t cover the bank loan, you’ll make up the difference by breaking open your kid’s college-fund piggy bank.

That’s what critics say is the idea behind the Utah Fund of Funds, a big-bucks investment program that you might not even know about, despite the fact that it’s using your taxes as a safety net. …

According to many critics, like Derek Monson, public-policy director of conservative think tank The Sutherland Institute, public money should not subsidize risky private-sector investments.

“Is the purpose of taxpayer dollars to eliminate the risk of high-risk investments?” Monson asks. “I thought it was for public education and roads, but I guess not.”

Click here to read the full story by Eric S. Peterson at City Weekly.