Governor Wolf and Treasurer Reese Announce Cuts in Wall Street Fees by Consolidating Investments (Round-Up)
By: Eryn Spangler, Press Assistant
January 13, 2017
Yesterday, Governor Wolf and State Treasurer Reese announced the consolidation and transfer of three investment funds that will help cut millions in tax dollars spent yearly. By eliminating private Wall Street managers and consolidating the investments, the Department of Treasury will save $5.6 million annually.
“With the commonwealth facing a serious budget deficit, we cannot afford to hand money from any fund to Wall Street when we could better manage the money ourselves and save millions of dollars,” Governor Wolf said. “This effort further reflects my focus on cutting costs and creating efficiencies in state government to avoid disastrous cuts and preserve our investment in education, middle-class job creation and vital services like drug treatment. I want to applaud Treasurer Reese for his collaborative work on this project and hope this is the beginning of a larger effort to cut fees to Wall Street.”
Take a look at the coverage:
Philly.com: Pa. fires money managers, seeks savings
“We cannot afford to hand money from any fund to Wall Street when we could better manage the money ourselves and save millions of dollars,” Governor Wolf said, in making the announcement. According to the governor and the treasurer, Pennsylvania should save more than $6 million a year from these investment changes.
TribDem: Wolf moving 3 funds to seek investment fee savings
Pennsylvania’s governor is moving three state-run funds to the Treasury Department in a move expected to save more than $5 million in investment fees. Democratic Gov. Tom Wolf on Thursday said the department is taking over a $1.4 billion state workers’ insurance fund , a $700 million worker’s compensation fund and a $200 million underground storage tank indemnification fund.
Central Penn Business Journal: Wolf administration cuts Wall Street money managers
The commonwealth will cut out dozens of Wall Street investment managers for three state investment funds, a move expected to save Pennsylvania about $5.6 million per year, according to the Wolf administration. Gov. Tom Wolf and Treasurer Timothy Reese today announced that the Department of Treasury will manage the State Workers’ Insurance Fund, the Workers’ Compensation Security Fund and the Underground Storage Tank Indemnification Fund. The three funds have combined assets worth about $2.3 billion.
WITF: In cost-cutting effort, Treasury to absorb three state funds
[Governor Wolf] said eliminating those private managers makes good financial sense. “The Treasury of Pennsylvania does this for billions of dollars on a routine basis,” he said. “Why not just hand this over to the Treasury of Pennsylvania, consolidate the management–it’ll save about $5.6 million.
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