Senate again defeats proposal for investment pool

JEFFERSON CITY, Mo. -- For the second day in a row, the state Senate defeated a plan to let local governments pool their money in state-run investments.

State Treasurer Nancy Farmer had proposed the idea earlier this month, saying it would provide a valuable tool for small governments, especially in a recession.

But senators rejected amendments both Tuesday and Monday that would have added the proposal to a larger banking bill sponsored by Sen. Anita Yeckel, R-St. Louis.

Monday's amendment had contained additional provisions opposed by some lawmakers. The amendment Tuesday by Sen. John Schneider, D-Florissant, dealt only with the investment pool. It failed 18-12.

Farmer has said 31 states already operate similar investment pools, most through their state treasurer's office.

Farmer's proposal would have allowed cities, counties or other political subdivisions to invest and withdraw money in the state-run pool.