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Editorial: Review those limits on Missouri's funds invested in state banks

Wednesday, March 4, 2009

Here's an opportunity for the state to handle its finances like a prudent family would: by seeking the best and safest earnings on investments

At any given time, Missouri has $250 million to $500 million deposited in banks across the state.

By law, the interest earned by these deposits is linked to treasury-bill rates. If the state invested its funds at higher certificate-of-deposit rates, the state could earn $10 million to $15 million more a year.

Clint Zweifel, the state treasurer, was in Cape Girardeau recently to push for a repeal of the state law that ties interest paid for state funds to treasury bills.

He also would like to see limits raised on lending by state banks to Missouri businesses under the linked deposit program.

Zweifel believes his plan would benefit more businesses and, in turn, spur more jobs.

With all that's happening to the national economy, Missouri could use any boost it can muster to support businesses and jobs throughout the state.

Treasurer Zweifel's ideas deserve quick and serious consideration by our state legislators.

Taxpayers continually say they would like to see government operate more like the way prudent families handle their finances.

Most individuals with money to set aside look for the best and safest returns on their investments.

Here's an opportunity for the state to do the same thing.


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