Ohio
Treasurer Josh Mandel
Investment Program Passes $1
Billion in Less Than a Year
STAR
Plus Quadruples Rate of Return Over Traditional Investment
Program
COLUMBUS
- State Treasurer Josh Mandel announced today that STAR
Plus, a first-of-its-kind local investment program, has surpassed $1
billion in
local government investments. The STAR Plus Program was launched in
June 2012
and has seen tremendous growth since its inception, with local
governments of
all sizes choosing to safely invest their tax dollars through the
program. This
program was made possible by HB 209, passed by the Ohio Legislature on
December
6, 2011 with bipartisan support.
STAR
Plus is a safe and secure investment option for government
subdivisions such as schools, cities, counties, townships, libraries,
and other
public entities which provides weekly liquidity and a competitive
yield. This
program is one of a kind and the first in the country for local
government
fiscal officers. STAR Plus is offering a yield that is more than four
times
greater than the traditional STAR Ohio program that was created in 1985.
"We
heard the concerns of taxpayers and local fiscal officers
loud and clear, and have responded by quadrupling the yield on tax
dollars and
keeping the people's money safe," said Treasurer Mandel. "Our number
one mission in the Ohio Treasurer's office is to ensure that Ohioans'
hard
earned tax dollars are kept safe and secure and this successful program
does
just that."
The
success of this program is evident by 320 Ohio government
subdivisions choosing to open STAR Plus accounts and investing
$1,005,697,042
in less than a year. This includes 125 schools, 45 cities, 34
libraries, 31
townships, and 11 counties, amongst other government entities. (See
chart below
for full breakdown)
The
STAR Plus program is endorsed by the Community Bankers
Association of Ohio (CBAO). In total, 30 Ohio community banks have
chosen to
participate in STAR Plus thus far, compared to zero community banks
that
participated directly in the traditional local government investment
program,
STAR Ohio, that has been around since 1985.
STAR
Plus provides safe and competitive returns on cash deposits
for Ohio local governments. It is modeled after established
private-sector
programs and allows government fiscal managers to place deposits in a
carefully-screened network of hundreds of Federal Deposit Insurance
Corporation
(FDIC) insured banks via a single convenient account. Funds are
deposited in
multiple banks to provide the maximum deposit insurance amount as set
by the
FDIC, currently $250,000, providing the backing of the full faith and
credit of
the U.S. Government. Taxpayer dollars invested through the program are
fully
FDIC insured with no credit or market risk while earning a competitive
yield.
The minimum amount required to open a STAR Plus account is $500,000,
and the
current maximum amount is $15 million per depositor. The program offers
daily
deposit capability and weekly liquidity with penalty-free withdrawals
for
government fiscal officers.
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