State-invested tax dollars double in three months

Steelman took office Jan. 10. In that time, her office has redirected investments so that 23.1 percent of the state’s portfolio is invested in Missouri banks and commercial paper issued by Missouri companies.

Last year, about 10 percent of the state’s financial reserves were invested in Missouri banks and companies, according to a release from Steelman’s office.

Closer to home

Steelman has removed foreign firms from the state’s approved broker-dealer list, including Paribas Capital, which is owned by BNP, the French bank that handled the money involved in the Iraqi oil-for-food scandal.

“We are working to bring Missouri tax dollars back to the state of Missouri,” Steelman said in the release. “And, we are committed to putting those tax dollars back to work in our communities to create jobs for citizens and strengthen our state’s economic foundation.”

The treasurer noted that by law, state tax dollars can be placed only in the most secure investments, such as treasury bills, commercial paper of top-rated corporations, overnight repurchase agreements and bank deposits that are backed by treasury securities.

“We are very risk averse, because we are first concerned with protecting principal,” Steelman added. “This limits our yield but makes certain no tax dollars are put at risk.”

The treasurer is Missouri state government’s chief financial officer.

The treasurer’s office manages Missouri’s $16.6 billion in annual state revenues; directs the state’s banking services; and manages Missouri’s investment portfolio.

According to the treasurer’s most recent performance report issue May 6, the state’s $3.18 billion investment portfolio was earning 2.73 percent interest for $1.7 million in earnings.

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