Shilepsky was reacting to the 4-1 decision Thursday by the Board to gradually divest itself of the $310 million state pension fund investment in tobacco stock. He applauded the Board's decision but criticized its rationale: two of the four members justified their divestment votes by citing concerns about the future financial performance of tobacco stocks.
The Board of Investment is comprised of the Governor, Secretary of State, State Treasurer, State Auditor, and Attorney General. The state began investing in tobacco companies in 1993 and by 1995 had made $35 million on those investments.
"I recognize that the State Board of Investment is steward of the state's pension and trust funds, and that there is a fiduciary responsibility involved. But a legal mandate does not relieve one of a moral responsibility, and a paid professional stock picker is no replacement for a conscience. It is generally agreed that the tobacco industry, like the gambling industry, exploits a human weakness to the clear detriment of its customers. It is legal but that doesn't mean the state should encourage it! It would be nice if our public officials would just come out and say that."
Shilepsky acknowledged a danger in playing politics with pension funds, saying "they should not be used for someone's bright idea du jour or for enforcing the reigning version of political correctness. But on the other hand there must be some values public leaders agree on and will promote. When the state has $43.7 billion to invest it has a responsibility to demand accountability from the corporations it helps capitalize. "
Shilepsky wondered if official wishy-washiness contributed to citizen disengagement from politics. "I think voters want to hear their purported leaders make clear, definitive statements on issues. But our bipolar, two party system, coupled with winner-take-all elections, discourages that. That is why I am promoting electoral reforms like instant runoff ballots and fair share voting which will reward rather than penalize candidate honesty and clarity."
Shilepsky, 55, lives and owns a computer consulting business in Minneapolis. He was a life-long Democrat before joining the then-Independence Party, now-Reform Party in 1995. Trained in physics, public policy analysis, and economics he has worked for both the federal (US EPA and US General Accounting Office) and Minnesota governments (State Planning Agency and Waste Mgt Bd).
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