Time to Vote
Now we’re just a couple days away from the primary election. My opponent continues to make statements that we need to focus on the issues. Having received three of his mailers, I keep waiting for him to discuss the issues of the State Treasurer’s office, but he continues to avoid them. He seems confused thinking that the State Treasurer is a member of the legislature as he continues to focus on cutting both taxes and spending—both issues that only the legislature can control.
If he wants to be a legislator so badly, then why didn’t he run for his seat in District 45 again?
Let me talk about a couple issues that the State Treasurer needs to understand.
First is the difference between a basis point (1/100 of a percent) and one percent. For all his private sector experience, he doesn’t know the difference between these two terms. Why is this important to know? Because when the state invests its money or issues bonds, the difference in the rates received or paid is discussed in terms of basis points, not percentages. Underwriters may have to reprice a bond issue and change the rate by 5 basis points. An example would be to change the yield on the bond from 3.85 percent to 3.90 percent, a change of 5 basis points, not 5 percent. However, the underwriter would say they had to cheapen the rate by 5 basis points.
So why am I harping on this issue? Throughout the campaign and still on my opponent’s website he has stated that his investments have out performed the Public Treasurers Investment Fund by 22 percent and 30 percent. I confirmed with the portfolio manager (the guy that really does the investing) at Zions Liquid Asset Management that the difference was two tenths and three tenths of a percent. That’s a far cry from what he has told everyone on the campaign trail. (If my math is right, and it is, he has overstated his performance by 100 times) I just want people to understand what his “extensive private sector experience” has taught him.
A second issue is the difference between a discretely managed medium term portfolio and a stable net asset value fund that provides daily liquidity. In my opponent’s mind, these are the same. The guys at Zions Liquid Asset Management again confirmed to the Money Management Council that they are targeting funds that have a two to three year investment horizon. One would expect that their return would be better because their investment horizon is longer and they do not have a need for daily liquidity. This is comparing apples and oranges. Again, this is a subtle difference lost with “extensive private sector experience.”
I also noted that he professes to have worked with the State Treasurer’s office and county and city treasurers to negotiate multi-million dollar contracts. I know he has never negotiated with the State Treasurer’s office, because I’m the one he would have worked with, and I have yet to talk with a public treasurer that knows him. In fact, other than the Sandy City account that was laid in his lap, I’m not aware of any contracts he has negotiated. Maybe he could clarify this with some examples and names of people he has worked with.
I leave it now in the hands of voters. Do you want a qualified, experienced, competent and educated State Treasurer? Or do you want to extend the power and control of the state legislature into the executive branch of government? (See Salt Lake Tribune Editorial, Saturday, June 21, 2008) Choose wisely because you’ll have to live with the outcome.
