State treasurer outlines efforts to rebuild Missouri's economy during visit to Sedalia

State Treasurer Clint Zweifel reaffirmed his office’s commitment to accountability, management of state resources, and spurring economic growth during a stop in Sedalia on Tuesday.

Zweifel, a Democrat and former state representative, was elected to office in 2008 after campaigning on rebuilding the state’s economy, helping maintain college affordability, and promoting responsible home ownership.

A little more than a year into his first term, Zweifel’s office was given a clean audit by State Auditor Susan Montee on March 10. The state treasurer oversees management of $20 billion in annual state revenues and oversees banking services and Missouri’s $3.5 billion investment portfolio. Zweifel also handles some $550 million in unclaimed property and funds and serves as chairman of the Missouri Higher Education Savings Program Board which governs Most 259 — a tax-deductible college savings plan administered by the state. Zweifel also serves on governing boards dealing with housing, state employee pensions, and debt obligation and cancellation.

Zweifel said the current economic situation is difficult, but believes sound investment and sound stewardship of taxpayer dollars will help steer Missouri and the nation out of the recession.

“It is no secret to Missouri families that the state’s budget is going to be a challenge right now because they know the realities of the economy right now first hand ... we are focused on making smart investments to provide for a real, strong economic recovery for our state,” Zweifel said.

Zweifel singled out last year’s unanimous passage in the General Assembly of Invest in Missouri legislation that expanded the Missouri Linked Deposit Program as one tool his office is using to aid retention and creation of jobs and to spur economic development. The changes to the program freed up $720 million in low-interest loans available to small businesses and farms across the state. Since January 2009, Zweifel’s office has doled out $234 million in loans impacting 2,500 jobs and affecting 1,100 farms. Zweifel said the program had OK’d eight loans from 10 Pettis County farms totaling $3.4 million.

“We have expanded these programs greatly with no cost to taxpayers and with them we are making and creating an infrastructure for these business to reinvest right here in the state of Missouri and provide for real job growth.

Those loans have a real, tangible impact and begin to set up the infrastructure for the state to have a strong economic recovery,” Zweifel said.

Protecting Missouri’s Triple A bond rating is another tool Zweifel hopes to use to aid economic recovery efforts.
“We have to provide for fiscal responsibility and accountability for the state. We are one of only seven states to have a Triple A bond rating. If we make smart investments and we do a good job of being able to make promises we can keep, we’re going to position this state as one of the key states in turning around the economy,” Zweifel said.

Zweifel also pushed changes to the rate of return for Missouri’s time deposits so “for the first time in 50 years Missourians will get a fair market rate on investments in Missouri banks.” According to his office, the change netted state coffers an additional $320,000 in interest payments just three weeks after it was implemented.

Zweifel’s modernization of the state’s unclaimed property account resulted in $21 million in returns, up 4 percent from the previous year, and cut the wait time for returns from 43 to 28 days, Zweifel said. He also enacted policies that stopped the state’s practice of auctioning off unclaimed medals for military service personnel.

For more information on low-interest loans, unclaimed property or the tax-deductible college savings program, visit the treasurer’s Web site at treasurer.mo.gov.