Treasurer Boozer works with Legislature to improve Alabama’s investment options – 5/29/2012
MONTGOMERY – The State of Alabama now has more investment options for its money, thanks to legislation sponsored by Sen. Bryan Taylor and supported by State Treasurer Young Boozer. Gov. Robert Bentley recently signed Senate Bill 282 into law, which expands the types of investments in which the State Treasury can invest state funds.
“This action makes long-needed changes in state investment guidelines,” said Treasurer Boozer. “I appreciate Senator Taylor’s work in getting the bill passed and Governor Bentley signing it into law.”
The new guidelines:
• allow deposit of state monies in all interest-bearing bank products. Deposits are fully collateralized, meaning there is no risk of loss involved with the expansion of state funds into other bank products.
• eliminate a 20% restriction for investment in treasury and agency securities and funds containing such obligations.
• provide an additional short-term vehicle for investment of excess monies through commercial paper and bankers’ acceptances.
“These changes give our office the flexibility it needs to further improve investment strategies,” said Treasurer Boozer. “Because of their restrictive nature, the old guidelines essentially hamstrung efforts to earn more interest on state funds. In fact, prior to the passage of this legislation, Alabama had the most restrictive investment guidelines in the nation. Now we have the ability to pursue better investment options for taxpayer money.”