2007 Annual Report
(OFFICE OF) TREASURER OF STATE
DAVID G. LEMOINE, TREASURER
BARBARA RATHS, DEPUTY TREASURER
Central Office: Cross Building, 3rd floor, Augusta, ME 04333-0039 TTY: (207) 624-7630
Mail Address: 39 State House Station, Augusta, ME 04333-0039 FAX: (207) 287-2367
Established: 1820 Telephone: (207) 624-7477
Reference: Policy Area: 00; Umbrella: 28; Unit: 248; Citation: T0005 M.R.S.A., Sect. 000000121
Average Count—All Positions: 18.000 Legislative Count: 18.00
PURPOSE:
The Treasurer of State manages cash and debt for the State of Maine. This includes cash collection, processing and management; investing funds not needed to pay bills; investment management of tobacco settlement funds; forecasting revenues for interest income to the General Fund, Highway Fund, and Fund for a Healthy Maine, tobacco settlement receipts, and Unclaimed Property transfers to the General Fund; debt management; custodial services for bonds and letters of credit; investment management for State trust funds; collecting and returning unclaimed property to Maine citizens; publishing and distributing State revenue sharing to municipalities; and investment oversight for NextGen, Maine's College Investing Plan.
The Treasurer serves on the boards of the Maine Municipal Bond Bank, Maine State Housing Authority, Maine State Retirement System, Finance Authority of Maine, Adaptive Equipment Loan Program, Maine Health and Higher Education Facilities Authority, Maine Governmental Facilities Authority, Northern Maine Transmission Corporation, Maine Education Loan Authority, the Maine Public Utility Financing Bank, Lifelong Learning Accounts Board, and chairs the NextGen College Investing Plan Advising Committee.
ORGANIZATION:
The Treasurer of State, established by the Constitution of the State of Maine in 1820, is elected biennially by both Houses of the Legislature sitting jointly. The Deputy Treasurer of State is designated by law as the chief clerk of the Office of the Treasurer and performs the duties of the Treasurer in the event of a vacancy or other absence.
PROGRAM:
The Office of the Treasurer processes all state agencies' Cash Receipt Statements—more than 112,000 during FY 2007. More than 1.8 million checks were distributed, as well as 730,039 electronic funds transfer vendor payments. Banking services provided to State agencies are coordinated by the Treasurer's Office--including deposit access to 36 Maine bank accounts, check stop payments and/or reissues, wire transfer services, and more. Cash flow is monitored. Funds not needed to pay state expenses or to compensate the banks for services are invested through the Treasurer's Cash Pool in commercial paper, obligations of the U.S. Government, CDs in Maine banks, money market mutual funds, corporate bonds, and repurchase agreements. The Cash Pool includes 114 funds, averaged more than $580 million in FY 2007, and was managed with safety, liquidity and yield in mind. More than $34 million in earnings from investments, including more than $1 million to the General Fund, was distributed to participants in the Pool on a prorata basis.
The Treasurer is responsible for issuing notes and bonds to provide funds for State needs. The Treasurer of State prepares the proposals, obtains approvals, prints the bonds or notes, receives bids, and closes the sale. Records are maintained of all issues. Payments to fiscal agents for notes, bonds, and coupons that mature are initiated here. The Treasurer works closely with the rating agencies to assure they are fully informed of all state economic and fiscal issues. Three long-term investments--the Governor Baxter Trust, Lands Reserved Trust and the Common Trust--are managed through a contract with a third party. A trust committee led by the Treasurer provides policy advice and authorization for transactions. The Unclaimed Property Program identified nearly $25 million in unclaimed property during FY 2007. 13,340 claims were paid, reuniting citizens with over $10.6 million of lost property.
The Office of the State Treasurer distributes Municipal Revenue Sharing monthly to 492 municipalities and territories. Revenue sharing distributions consist of 5.1% of the previous month's collected sales tax, corporate tax, and personal income tax revenues. Population, State Valuation, and Tax Assessment statistics updated annually are used to calculate the ratio due to each municipality. Approximately $121 million was distributed during FY 2007. Keeping the Legislature and citizens of Maine aware of the State's current and long-term debt is an important function of the Treasurer.
