As your state treasurer, I take my job very seriously. For me, it's critical that we work to give the state treasury a strong financial foundation so that we can continue to provide much-needed funds for the state.
I'm happy to report to you that we recently produced our highest quarter yet under my administration in the fourth quarter of fiscal 2017. Let me give you a breakdown of our investment receipts and what things look like for the future.
The combined receipted totals for the fourth quarter of fiscal year 2017 (April through June) were $18.1 million.
In total, we receipted $57.5 million in fiscal 2017, which is a 17 percent increase over 2016.
When comparing year-over-year averages, my office produced a rough average of $4.7 million a month in fiscal 2017, compared to about $4 million a month in fiscal 2016.
To say I'm excited is an understatement, but I'm also humbled because we've been able to do more with less. Let me explain.
Interest rates dropped dramatically from 2008 to 2010. Despite historically low interest rates during my tenure as treasurer, we've still been able to produce some of the highest investment returns in nearly a decade.
While we've had slightly more money in our investment portfolio over the years, which also affects receipted amounts, interest rates are still a sharp contrast to the high level they were at before the recession hit.
With our more active management style, we are reacting quicker to the market conditions, which will help build a solid foundation for the future of your state treasury.
While we are taking a more active role with regard to investments, I want to assure Arkansans that I do not allow any investments to be made that aren't backed by the full faith and credit of the United States government or meet the guidelines set forth by the state Board of Finance. All of our investment decisions are carefully thought-out and strategically planned, and I want to quell any fears otherwise.
Due to our investment strategy, we've been able to increase our participants' earnings in the State Treasury Money Management Trust dramatically.
The Legislature approved updates this past session to the types of investments that we're allowed to use in the State Treasury Money Management Trust. We believe these reforms will allow us to produce increased earnings on investments than what we've previously been able to do for local cities, counties and school districts.
One of our biggest participants, the Department of Finance and Administration's Employee Benefits Division, saw an increase from roughly $517,000 in earnings in fiscal 2016 to about $2 million in earnings in fiscal 2017.
We've also received requests from other state agencies that want to take advantage of our investment capabilities.
For instance, since we've been managing funds for the state Workers' Compensation Commission over the past two fiscal years, we've increased their investment earnings substantially. With help from our investment team, earnings for the commission went from $573,000 in 2015 to $1.6 million in fiscal 2017.
I'm eager to see what we can do for the entities that choose to participate in this updated program.
I appreciate the trust that you all place in me to allow me to make these necessary improvements to our state treasury's investment portfolio. I love our state and am doing all I can to make it a place where people want to locate to, live and raise their families in.
I say all of this to remind you readers that despite any challenges I face, I have and will continue to remain totally focused on earning the most money that I can for the taxpayers of Arkansas.
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Dennis Milligan was elected treasurer in 2014. The state treasury is responsible for overseeing the state's $3.5 billion portfolio. Since taking office in 2015, Milligan has receipted the state more than $118 million in investment returns.
Editorial on 10/07/2017