Dec 8, 2008: Communication, Collaboration and Cooperation are Key to Treasury Accomplishments

The holiday season often brings reflection on the year that is ending and thoughts about the year ahead. As I review these past two years as your State Treasurer, I am very proud of the work and accomplishments of the State Treasurer’s Office. With every goal that we have achieved, there is a common theme of team work – both within and outside of the State Treasurer’s Office. I want to thank my staff and everyone who has had a role in our accomplishments for their dedication and hard work.

Through collaboration with other state agencies during the past two years, the State Treasurer’s Office Budget and Finance Division and Cash Management Division have improved state banking and accounting practices. Our primary focus during fiscal years 2007 and 2008 was to resolve banking-related issues and simplify the recording of treasury transactions in the general ledger. As a result, we were able to complete the State Treasurer’s Office audit of fiscal year 2007 and publish the fiscal year 2007 annual report. I am pleased to let you know that the fiscal year 2008 audit is on schedule and the annual report for fiscal year 2008 will be published in the coming weeks.

I look forward to continuing in 2009 the internal and external communication, collaboration and cooperation that help the State Treasurer’s Office provide proficient, efficient and effective banking services. As we navigate through this challenging economic environment, the State Treasurer’s Office Investment Division is keeping a steady hand on the state treasury. Through these extreme market conditions, the State Treasurer’s Office has maintained a disciplined investment strategy, focused first on the safety of public money, followed by the principles of liquidity and yield.

Although the recession was officially declared earlier this month, the affects of the economic downturn have been evident to state and local governments, businesses, families and individuals for some time. As the state’s banker, the State Treasurer’s Office has a role in the collaborative efforts statewide to preserve the economic health of the state of New Mexico. Along with other state agencies, the State Treasurer’s Office is looking internally at ways to reduce expenditures. We are also collaborating with state analysts to evaluate and address the state’s anticipated budget shortfalls resulting from lower revenues coming to the state in the current year.

We also are working with state financial institutions to promote economic development banking in New Mexico communities through the State Treasurer’s Office Certificate of Deposit and Linked Deposit programs. The State Treasurer’s Office currently invests $200 million in certificates of deposit (CDs) at various New Mexico financial institutions. Additionally, through the Linked Deposit program, the State Treasurer’s Office has time deposits in eligible state financial institutions serving financially at-risk rural communities.

As we embrace the challenges ahead, my staff and I will continue to be diligent guardians of the state treasury on behalf of the state of New Mexico. I appreciate your continued support, and wish you a joyous holiday season and a happy new year.