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Raimondo: New Cash Management for RI Cities and Towns

November 23, 2011

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.

2 Comments leave one →
  1. Mister Guy permalink
    November 23, 2011 10:42 pm

    How about returning most (if not all) of the aid to cities & towns that Carcieri cut out?

  2. Missing Details permalink
    November 28, 2011 4:19 pm

    No mention that Joseph Pratt, the Treasurer’s Chief of Staff, used to be an Executive at Fidelity?

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