2009 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: 16.000
Legislative Count: 16.00
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 Public Employees 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 123,000 during FY 2009. More than 1.6 million checks were distributed, as well as 475,628 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 obligations of the U.S. Government, repurchase agreements, CDs in Maine banks, money market mutual funds, corporate bonds, and commercial paper. The Cash Pool includes 115 funds, averaged more than $479 million in FY 2009, and was managed with safety, liquidity and yield in mind. In FY 2009 the Cash Pool earned more than $7.2 million in earnings from investments, including more than $900,000 to the General Fund.
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 $26 million in unclaimed property during FY 2009. 18,562 claims were paid, reuniting citizens with over $12 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 $120 million was distributed during FY 2009. Keeping the Legislature and citizens of Maine aware of the State's current and long-term debt is an important function of the Treasurer.
