Zweifel Unveils Plan to Manage Recovery Funds
Plan provides transparency and accountability in management of funds
For Immediate Release
Wednesday, April 08, 2009
JEFFERSON CITY - State Treasurer Clint Zweifel today announced his plan to manage more than $4 billion in American Recovery and Reinvestment Act funds the state will receive. The State Treasurer's Office has created two pools in the state treasury for the separate management and investment of the Federal Budget Stabilization Fund and the Federal Stimulus Fund. The federal recovery act distinguishes the two pools as having different purposes, and the creation of each allows for increased transparency and accountability. Treasurer Zweifel also said his office would be able to manage the funds with no increase in staff.
Senate Bill 313, signed March 26, authorized the creation of the two special funds to keep the federal recovery funds separate from existing state funds. The two recovery funds will be invested along with other state funds by the State Treasurer's Office, but will never be comingled. In order to verify this, the federal recovery funds, as with all funds received by the state, will be accounted for by the Office of Administration and the State Treasurer's Office.
"My office is meeting the requirements of SB 313, which was signed by Governor Nixon, to increase transparency and accountability," Treasurer Zweifel said. "We believe separately tracking the investment results of the recovery funds is consistent with the spirit of the policy established by SB 313."
The Missouri Constitution places authority with the State Treasurer to invest all state monies. The Office of Administration, as the accounting arm of state government, places monies in funds within the state treasury for the State Treasurer's Office to invest. Currently, the state's investment portfolio is about $3.5 billion, but could potentially double as federal recovery funds enter the state treasury. Even with the increase, Treasurer Zweifel said his office would receive no additional staff.
"The federal recovery funds are meant to rebuild our economy and put Missourians back to work, and I am committed to those goals," Treasurer Zweifel said. "Our internal processes allow will us to efficiently manage the investment of the funds."
Treasurer Zweifel said he was pleased with the bipartisan approach to SB 313 as Sen. Gary Nodler, R-Joplin, and Rep. Allen Icet, R-Wildwood, worked with Governor Jay Nixon to pass and sign the bill in to law.
"I look forward to working with Governor Nixon to help move Missouri's economy forward, and I applaud the legislature's efforts, especially those of Sen. Nodler and Rep. Icet, to provide transparency and accountability as the recovery funds are put to work."