Raimondo: New Cash Management for RI Cities and Towns
General Treasurer Gina Raimondo is out with a pre-Thanksgiving present to Rhode Island city and town leaders: A new way of managing cash assets to yield more money for the struggling municipalities.
The State Investment Commission announced that Fidelity Investments has been selected to manage short-term liquid assets that are used for day-to-day operations, such as payroll and operating expenses.
By pooling the assets of the state’s 39 municipalities the state hopes to create higher investment yields for this public money.
Raimondo estimates that there is more than $500 million that could be invested in this manner. She projects an additional $10 to $15 million in new revenue over the next decade.
Forty-four other states use such a mechanism to increase interest and help stabilize local finances.
Under current practice, the cities and towns each choose their own money manager for short-term assets.