By Geoffrey Hoy 

Special to the Salisbury Post

“Fire Wall Street, Bring the money home,” Ron Elmer, Democratic candidate for North Carolina treasurer, urged local Democrats Thursday evening.

He explained that the N.C. treasurer, who has sole responsibility to invest $90 billion of state retirement funds, has contracted out that task to over 200 different money managers, many of them on Wall Street. The cost to North Carolina taxpayers is $500 million in annual fees.

He proposes hiring staff in the treasurer’s office to manage the stock portfolios now outsourced to manage these investments. Currently, in-house staff manages over $30 billion of the $90 billion, which is in bond investments. The department investing the bonds cost less than $5 million, whereas the stock and other investments are contracted at a cost of $500 million.

“At the present time, the state retirement fund earns less than the national average for retirement funds by one percent. This amounts to about $1 billion annually, which then becomes a cost for the state budget,” Elmer said. His plan would save that money for the state to use for other purposes.

The job of state treasurer has been described by former treasurer Harlan Boyles as “the most powerful position in the state.” This is because there is no oversight for how the treasurer sees to it that the $90 billion is invested. A commission, appointed by the current treasurer, Janet Cowell, who is not running for re-election, has recommended that an oversight board be created. Elmer enthusiastically supports this idea.

He strongly supports the requirement of having this position filled by a credentialed, chartered financial analyst, not just a politician. He has those credentials and has taught financial management at N.C. State.

Geoffrey Hoy is the chairman of the Rowan County Democratic Party.