Local Democrats Host State Treasurer

By Jan Howard

Connecticut State Treasurer Denise L. Nappier said last week that her primary responsibility is to make sure the state is on a firm financial footing. As such, though she does not draft or approve the budget, her department does manage the state’s money in addition to the $20 billion state pension fund.

Ms Nappier spoke to about 25 Newtown Democratic Town Committee members and residents on May 13 at the Edmond Town Hall’s Alexandria Room.

According to Christopher McArdle, who introduced Ms Nappier, the state treasurer has restored professionalism and high standards to the treasury office. “There are no secrets, no deals,” he said.

Ms Nappier, in her remarks, expressed her dismay and disappointment over past scandals and revelations. “We have returned high standards, integrity, and professionalism at the treasury,” she told the partisan gathering. “The Connecticut treasury is a different place.

“We want to put the money to work to make a difference in people’s lives,” she said, noting the pension fund has outperformed its benchmark.

Ms Nappier said her department is very involved in restoring shareholders’ confidence in the wake of corporate scandals in which people lost a portion or all of their life savings.

“We cannot afford to be silent,” she said. “We are speaking out loud and clear. We are working to advocate for accountability, for shareholder rights.”

Progress is being made, she said. “We’ve gone to Wall Street and urged meaningful reform. We take seriously the safeguarding of the investing public.”

Ms Nappier said there has been progress at many companies that may be participating in 401k plans. “For the first time shareholders are provided with more information,” she noted.

Ms Nappier said that over five years, $50 million in unclaimed property has been returned to rightful owners, such as savings accounts and safe deposit boxes. She suggested that people should look up the department’s listing, Office of Connecticut State Treasurer Denise L. Nappier, to find the “name it and claim it” site.

“We’ve got money and some may be yours,” she said.

Ms Nappier said the state’s short-term investment fund has also outperformed its benchmark, generating $4 million for municipal taxpayers. “We’re always looking for ways to reduce the debt burden on the budget and taxpayers,” she said. In excess of $200 million has been saved, she said, that created immediate savings to alleviate budget pressures.

The state treasurer also discussed the Connecticut Higher Education Trust Fund (CHET) that helps Connecticut families save for higher education costs.

She also noted her department has recovered more than $1 billion for the pension fund and the treasury. “We file claims and seek lead player status to recover investments,” she said. “We’ve only just begun.”

Ms Nappier said it is important for investors to know how to weather a volatile market. She advised people to stay well diversified, to stick with an overall asset allocation, and “Be patient.”

She also discussed what she termed a “proliferation” of bank mergers. She said she remembered a period of time when there was a home-grown bank, with the president living in the community, that reinvested in the community.

Ms Nappier said the new megabanks must commit to be good corporate citizens, with money available for low interest loans and small business loans.

She said a public hearing by her department was the basis of negotiations with a merged bank that led to a 30 percent increase in its financial commitment to the state. “We used our clout as investors,” she said.

Ms Nappier is the first woman to be elected treasurer in state history.