LINCOLN — Given the opportunity, Minnesota voters didn't hesitate to eliminate their State Treasurer's Office.
A constitutional amendment billed as the “Abolish Office of State Treasurer in 2003 Act” passed by a healthy margin in the 1998 general election.
Voters were attracted to the idea of shrinking government, said Joe Howe, who directs treasury operations within the Minnesota's management and budget department.
“Definitely the sentiment was the streamlining of state government,” said Curt Yoakum, the department's spokesman.
Nebraska voters could get the same chance this fall if state lawmakers put a proposed constitutional amendment on the November ballot.
Legislative Resolution 284CA, as advanced from committee, would abolish the State Treasurer's Office as of Jan. 8, 2015. It is scheduled for first-round debate Tuesday.
State Sen. Dennis Utter of Hastings said he introduced the measure to eliminate duplication in state government and reduce taxpayer costs.
In Nebraska, the treasurer handles the state's “checkbook,” receiving and disbursing most of the money coming into state government.
The treasurer also deals with unclaimed property, administers the college savings program and handles child support collections and disbursements.
Utter argues that the treasurer's duties could be parceled out to other state agencies. For example, the Department of Revenue could handle the receiving of state money, and the Department of Administrative Services could handle disbursements.
At least four or five administrative positions could be eliminated, Utter estimated.
“Frankly, I think those functions can be done with a savings of staff,” he said.
Although the amendment would eliminate one elected position, Utter said the treasurer's job is more administrative than policymaking.
Similar arguments were made in Minnesota leading up to that state's vote.
Supporters cited duplication of effort, the ministerial nature of the job and the potential for strengthening accountability under the governor.
Opponents argued for the need to maintain checks and balances over state funds, the independence of an elected position and the potential for a treasurer to innovate.
Howe said Minnesota lawmakers tried several times to eliminate the treasurer's office before the 1998 vote.
During the 1980s, lawmakers had raised questions about whether the treasurer was going to work every day, and friction continued between the Legislature and the treasurer.
In the end, Howe said, the shift from being an independent agency to being part of a larger department went smoothly.
Two positions were eliminated: treasurer and deputy treasurer. The other employees continued working for the new agency.
Appropriate checks and balances were maintained through careful planning, Howe said.
The Minnesota vote came two years after Texas voters abolished their elected State Treasurer's Office. The duties were added to those of the state comptroller, also an elected position.
The last Texas treasurer, Martha Whitehead, campaigned on a promise to eliminate the office. Allen Spelce, a spokesman for the Texas comptroller's office, said the vote there proved noncontroversial. He said he did not have information about monetary savings.
In Nebraska, at least three constitutional amendments were introduced in the 1990s to eliminate the office. This year marks the first time that a proposal has made it out of committee.
Whether the measure will provoke political controversy remains to be seen.
The office has been a steppingstone to higher office for two Republicans — current Gov. Dave Heineman and former Gov. Kay Orr.
Three GOP candidates are battling for the treasurer's job this year, including a state senator and a former attorney general.
Nebraskans looking to other states can find all kinds of models for handling the treasurer's duties, as a look at the 50 states and the District of Columbia shows.
In 37 states, including Nebraska and Iowa, treasurers are elected by voters. Legislatures elect the treasurers in four states.
In eight states, governors appoint the officials who handle treasury functions. The remaining two states have treasurers chosen by other boards or officials.
Treasurer duties also vary wildly from state to state.
Most treasurers handle the investment of some or all state money. Nebraska is among the exceptions; that task is assigned to the State Investment Council.
Many state treasurers oversee the task of returning unclaimed property to its rightful owner, and many handle their state's college savings plans.
Among jobs under the treasurer's umbrella in one or more states are enforcing tax laws, promoting financial literacy, running the state retirement program and managing the Public Defender's Office.
Nebraska's current treasurer is Shane Osborne. He is not seeking re-election in 2010.
Nebraska has had a state treasurer since 1855, when the office was created by the territorial assembly.
Contact the writer:
402-473-9583, martha.stoddard@owh.com
Copyright ©2012 Omaha World-Herald®. All rights reserved. This material may not be published, broadcast, rewritten, displayed or redistributed for any purpose without permission from the Omaha World-Herald.
