Girard Miller

State and local retirement systems should collaborate to develop an AI-powered digital assistant to help government employees make better financial decisions throughout their careers. Hand-me-downs from the private sector won't cut it.

Not much for now, with next year’s insurance premiums jumping far more than general inflation and tax revenues. Employers’ only hope to begin stemming these costs long term is a stronger, unified front at the state and national levels. There also could be an important role for public pensions.

Short-term interest rates are likely to continue ratcheting down, making it a challenge for state and local financiers to maximize income on investments. But there are a few opportunities here and there.

Instead of across-the-board property tax cuts, targeted state and federal incentives for younger first-time home buyers and older would-be sellers could begin to break the logjam in the housing market.

State and local financial managers face the impact of federal aid cutbacks, plus new rules and even some opportunities. It’s a time to focus on what’s practical and necessary, both near and longer term.

Success in the coming years will require sustainability, adaptation and perseverance, especially as AI both enhances and disrupts government. Professional leaders need to look beyond the short term, facilitate change where needed, and reinvent themselves.

States need to aggressively assert their domain over the digital betting shops trying to cloak themselves as trading platforms.

An array of non-traditional investment vehicles will likely be offered up to governments’ defined-contribution plans. Consultants, plan sponsors and overseers need to approach them with caution.

They’re trading at two-decade-high levels, and inflation-protected bonds are showing especially strong yields. Retirement systems — and public workers growing their own retirement savings — should revisit their portfolios.

Such an option, paired with an income-based cap on premiums, could make health insurance more affordable for everyone while saving states and localities mega-billions. Best of all: no new taxes.