MDN.ORG:
Missouri Digital News
MDN.ORG
Mo. Digital News
Missouri Digital News
MDN.ORG:
Mo. Digital News
MDN.ORG:
Missouri Digital News
MDN.ORG:
Missouri Digital News
MDN.ORG
Mo. Digital News
Missouri Digital News
MDN.ORG:
Mo. Digital News
MDN.ORG:
Missouri Digital News
JEFFERSON CITY - Local governments and other taxing districts could get a new way to make money under a proposal announced Tuesday by Missouri Treasurer Nancy Farmer.
Under the plan, local taxing entities such as cities, counties, and water, fire, sewer and library districts could combine their savings into a pool. The state treasurer would then manage the money so that the taxing entities would get a higher return on their investments.
"The overall goal of our legislation is to provide local governments with an additional tool in running their investment options," Farmer said.
A similar program was pushed during the term of state Treasurer Wendell Bailey several years ago, but it was abandoned when it became clear the program had not been authorized by the legislature. Today's announcement is an attempt to revive the program with the legislature's approval.
Rep. Tim Harlan, D-Columbia, who plans to push the bill through the House, said the bill gives governments another choice.
"It's a good program," Harlan said. "It's just another option for local entities. I'm not sure how you could be against giving them another option."
Farmer, Harlan and House all agreed that the investments that would be made under the pooling plan would be of relatively low risk.
"Pooling gives the investor more latitude," said House, "and the state already has a very good track record on its investments."
Harlan said the plan is probably not for every type of government entity. He also said the plan would give the greatest benefit to smaller communities, since bigger cities already have enough money to invest.
Farmer said her office would invest funds only in securities authorized by the state constitution -- U.S. Treasuries, agency securities and commercial paper deposits.
The bill is also sponsored by Sen. Bill Kenney, R-Lee's Summit, who was unavailable for comment.
Harlan and House said they expected the bill to advance through the legislature with little opposition.