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 The Most Important Election Nobody Knows About
by Tom Campbell
October 16, 2008
One of North Carolina’s most prominent bankers once said he didn’t particularly care who the next Labor Commissioner, Insurance Commissioner or Secretary of State would be, adding he wasn’t even especially worried about who would be the next Governor. But he emphatically did care who was going to be the next State Treasurer. His remarks underscored the importance of a position hardly anybody knows anything about.
Our State Treasurer, in addition to being the “keeper of the public purse,” serves on more boards and commissions than any other elected state official. A member of the Council of State, the State Board of Education and the Community College Board, the Treasurer chairs the State Banking Commission and the Tax Review Board. As chair of the Local Government Commission, this official oversees the approval and sale of debt by cities and counties across the state. More than 800,000 current and retired government employees depend on the Treasurer to manage their pension funds, just as this office invests surplus state funds. The Governor and legislature depend on the Treasurer for advice when borrowing money.
We were greatly reassured when incumbent Richard Moore came forward this week with a report showing how the pension funds and the state’s cash balances were weathering the current economic crisis. Even though the report showed a 12 percent decline from one year ago, Moore’s message had a calming effect; his word is the one that counts regarding state finance. Moore and his predecessors have maintained a conservative investment philosophy even though some have pressed for greater returns through riskier strategies; the same type instruments that helped bring about the current crisis. Retirees don’t need to worry about their benefit checks and the state is maintaining sufficient cash to pay its bills.
The 2008 election for a new Treasurer is important. The new Treasurer will have to defend and establish an investment strategy without exposing public employee retirement accounts to unnecessary risk. He or she will also have to respond (and hopefully overcome) the cries of those who want the Treasurer to share this investment authority. Times like these prove the value of our current system.
With immediate and urgent needs for primary and secondary school construction, for new roads and other capital projects, the new Treasurer will be thrust into advising and perhaps even constraining how much more debt the state should incur. This official will face the issue of whether or not the current trend of non-voted debt should be restricted or continued. Our Constitution states the public should vote to approve public debt, but our legislature has increasingly ignored this caveat in favor of more expensive debt without voter approval. The Treasurer’s role in helping cities and counties in debt management will be even more critical during these economic conditions.
Our new Treasurer will be involved in making important decisions that affect every man, woman and child in this state. It behooves each of us to get to know the candidates and make an informed decision. The banker understood how crucial the Treasurer is. Hopefully, so will the voters. |
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