Newsroom
Arizona State Treasurer Dean Martin Says State Funds Safe from Mortgage Meltdown
Written on November 30th, 2007
Florida had a run of withdrawals from its public investment pool because of worries about the mortgage industry, but Arizona Treasurer Dean Martin said Arizona isn’t in the same boat.
Florida suspended investment pool withdrawals because of a run by local governments spooked by downgrades of that state’s extensive mortgage-based holdings.
Martin said Friday that Arizona reviewed its $12 billion state and local government investment pool when he took office in January and has already sold off risky mortgage-related investments.
Martin says the Arizona Treasurer’s Office never purchased sub-prime mortgage investment vehicles but did have to weed out some mortgage-related investments that weren’t as clean as had been advertised.
Associated Press
Information from:
http://www.aztreasury.gov/media/2007/KTAR-11-07.html
KTAR.com
Arizona Treasurer Dean Martin Says State’s Investments Already Scrubbed
Written on November 30th, 2007
PHOENIX (AP) — Florida had a run of withdrawals from its public investment pool because of worries about the mortgage industry but Arizona Treasurer Dean Martin says Arizona isn’t in the same boat.
Florida suspended investment pool withdrawals because of a run by local governments spooked by downgrades of that state’s extensive mortgage-based holdings.
Martin said Friday that Arizona reviewed its $12 billion state and local government investment pool when he took office in January and is sticking with a conservative course of avoiding risky mortgage-related investments.
Martin says the Arizona Treasurer’s Office never purchased sub-prime mortgage investment vehicles and didn’t renew a few mortgage-related investments that weren’t as clean as had been advertised.
By PAUL DAVENPORT / Associated Press Writer
Information from:
http://www.aztreasury.gov/media/2007/FOX11-11-07.html
Fox11AZ.com
10 Tips for a Smart Holiday
Written on November 16th, 2007
It’s easy to get in over your head financially during the holdays.
And the man who manages more than $12 billion in investments for the state of Arizona , the state treasurer, is offering tips for people to manage their holiday spending wisely and avoid debt as the holiday approaches.
Arizona State Treasurer Dean Martin offers tips on smart holiday financial management and avoiding debt as the upcoming holiday season approaches.
“You can make the holidays even happier if you follow these ten tips to help keep your head above water during the holiday shopping season,” Martin said.
1. Make a budget and stick to it.
- Place a spending limit for each person on your list.
- Keep in mind even the small expenses associated with the holidays, including postage, entertaining, and gas prices!
2. Avoid the emotion explosion.
- It’s only natural to want to shower your loved ones – especially the little ones – with gifts to show them how much you care – but this will bust your budget with overspending.
- Quality over quantity; avoid the impulse purchases.
- How many parents spend $100 on a gadget only to watch the kids play with the $1 box it came in?
3. Increase your income before increasing your spending.
- Retail outlets hire more part-time positions during this time of year.
- Consider taking up a part-time job to increase your income and meet your spending needs and wishes.
4. Don’t procrastinate.
- Putting off holiday shopping may force you to break your budget as you will buy anything – and everything – at the last moment.
- You could wind up paying more in shipping costs than the gift itself!
5. Pay cash -”No Payments, No Interest” can be a problem.
- Avoid credit card purchases unless you know you can pay off the full balance of your bill when all holiday shopping is completed.
- Stay away from buying into deferred payment plans, unless you are confident you can pay the purchase off before the deadline.
6. Don’t open new credit.
- Many retail and department stores offer discounts when you open a new credit card, but the one-time-only discount may not be worth having another credit card on your credit rating.
7. Pass on extended warranties.
- The cost of a repair or replacement over time may be the same as buying an extended warranty plan.
8. Open a holiday savings account.
- Set up a separate savings account just for your holiday shopping so it can accrue interest during the year.
- Make a small deposit into it each month, and you’ll be surprised how much “extra” money you have for the holidays next year!
9. Pay your bills on time!
- This is the best gift you can give yourself for the holidays and all year round.
- If you are late on payments, your interest rate – and future payments – might go up.
- When you miss just one payment, regardless of the dollar amount, it takes 24 months to restore your credit.
10. Get a FREE credit report.
- The information on this report determines the interest rates that credit card companies will charge!
- Visit www.annualcreditreport.com to request a FREE credit report once every 12 months from each of the nationwide consumer credit reporting companies: Equifax, Experian and TransUnion.
- Make sure you haven’t been a victim of identity theft and that your information is correct.
Information from:
http://www.aztreasury.gov/media/2007/AZCentral-11-07.html
AZCentral.com
State Treasurer Dean Martin Delights In Making Money For Arizona
Written on November 7th, 2007
Is it possible to have a government agency that pays for itself in one business day?
Arizona Treasurer Dean Martin claims that it is, and that all of the expenses of his entire department are paid for in the first business day of the year, leaving him the remainder of the year to make money for Arizona taxpayers.
Martin recently toured Northern Arizona to educate citizens about the functions of the treasurer, to promote his success with the education endowment fund and to try to live up to his promise of open government records.
“We are essentially the state’s bank,” said Martin as he explained the treasurer’s role.
He noted that each state department is required to deposit its funds with the treasurer and local governments, such as cities and counties, can also make deposits if they so choose. For example, the state treasurer’s office manages Local Government Investment Pool (LGIP) accounts in which the City of Holbrook participates. The treasurer’s job is to earn as much interest as possible on the money deposited by the various agencies while keeping the funds safe.
According to Martin, his office made $1.3 million on Jan. 1 by loaning state money out to banks over the holiday weekend. That loan by itself paid for most of the department’s operating expenses. On the first business day of 2007, investments paid the remainder of administrative expenses, and everything else earned during the year will help various state agencies and projects by allowing them to earn interest on money they deposit with the treasurer.
Martin noted that his office is on track for a record year. When he took over in January, he hired additional traders and investment specialists, and upgraded equipment so that his staff would have real-time access to the world’s trading markets.
Although the upgrades were expensive, Martin noted that they have already paid off, as earnings in the first quarter of fiscal year 2007-08 are up by 32.6 percent.
One of Martin’s proudest accomplishments in his short time on the job is the increase in education endowment distributions. He estimates that $69.26 million will be distributed to schools across the state, up 114 percent from the previous fiscal year. The total averages out to about an additional $1,430 per classroom. Martin explained that the distribution is divided up per student, so that each school earns funding based on the number of students served. The funding is in addition to state aid funding.
According to Martin, state aid funding used to be reduced in years that large education endowment amounts were distributed, but state laws now prohibit state aid from being reduced based on endowment distributions. That means that the more Martin and his staff can make for the endowment, the more each school will receive.
Although Martin predicts a rough year for Arizona economically, since the state budget expenditures are outpacing income, he notes that his office is still in good shape because of reliable market predictions. He expects that even with economic difficulties, such as the housing and credit busts, the treasurer’s office will earn more than ever in the remainder of the fiscal year.
“I love this job,” Martin remarked. “I think it’s the only government job where you earn
money for the taxpayers instead of spending it.”
Tammy Gray Searles
Information from:
http://www.aztreasury.gov/media/2007/AZJournal-11-07.html
AZJournal.com
