STATE TREASURER

ORIGIN & FUNCTIONS


Under the Constitution of 1776, two State Treasurers - the Treasurer of the Eastern Shore, and the Treasurer of the Western Shore - were elected by the House of Delegates. In 1841, the General Assembly consolidated the two offices. The Constitution of 1851 provided that a single Treasurer of the State should be elected by joint ballot of both houses of the General Assembly. Not until 1973 did the Legislature elect the first full-time State Treasurer. The State Treasurer serves a four-year term coinciding with that of the Governor.

The State Treasurer is responsible for the management and protection of State funds and property. In this connection, the Treasurer selects and manages the depository facilities for State funds, issues or authorizes agents to issue payments of State funds, invests excess funds, safekeeps all State securities and investments, and provides insurance protection against sudden and unanticipated damage to State property or liability of State employees.

The State Treasurer is the custodian of all stocks, bonds, promissory notes, certificates, and other negotiable investment instruments of the State. The State Treasurer also is custodian of all such instruments held for the State Retirement and Pension System, the Maryland Insurance Commissioner, foreign building and homestead associations, the Department of the Environment's Coal Mining Division [Bureau of Mines]; and all collateral pledged as security over deposits of State funds in Maryland banks.

State of Maryland General Obligation bond issues are planned, prepared, and advertised by the State Treasurer. With the approval of the Board of Public Works, the Treasurer arranges bond sales; prepares the State's Official Statement; receives bids; and arranges settlement, delivery of bonds, and tracking of the proceeds for these General Obligation bonds. Due to new restrictions by the federal government on income generated through the sale of tax-exempt obligations, the Treasurer most recently has played an increasing role in the administration of the State's capital program. In 1990, the State issued the first Maryland Mini Bonds, which are small denomination capital appreciation bonds. This program is administered by the Treasurer.

Under authority delegated by the Board of Public Works, the State Treasurer is responsible for the procurement of all financial and insurance services of the State. In this regard, the Treasurer competitively procures services concerned with banking, investment, safekeeping, financial advice, debt underwriting, insurance protection, claims adjusting, investigations, and some printing (Const., Art. VI, secs. 1-6; Code State Government Article, secs. 5-101 through 5-107, 12-104).

By law, the State Treasurer is a member of the Board of Public Works; the Maryland Agricultural Land Preservation Foundation; the Board of State Canvassers; the Governor's Salary Commission; the Hall of Records Commission; the Maryland Health and Higher Educational Facilities Authority; the Maryland Higher Education Investment Program Board; the Procurement Advisory Council; the Board of Trustees of the State Retirement and Pension System; the Board of Revenue Estimates; the Maryland State Employees Surety Bond Committee; and the Maryland Teachers and State Employees Supplemental Retirement Plans. The Treasurer also chairs the Capital Debt Affordability Committee.

Within the State Treasurer's Office are six divisions: Administration; Banking Services; Data Processing; Finance; Insurance; and Investments.

BANKING SERVICES DIVISION

The State Treasurer is responsible for the deposit and disbursement of State funds (Const., Art. VI, sec. 3). In fulfillment of that obligation, the Banking Services Division manages the flow of all receipts and disbursements of State funds.

FINANCE DIVISION

The Finance Division oversees the State Debt, maintains its credit rating, handles bond sales, and manages the Master Lease Program, which enables State agencies to finance procurement of equipment over a period longer than the twelve-month budget cycle.

INSURANCE DIVISION

In accordance with the Maryland Tort Claim Act, all claims against the State must be filed with the Office of State Treasurer. The Insurance Division processes such claims, and also has authority over insurance coverage for State-owned property, and the payment of claims awarded by the Board of Public Works.

INVESTMENTS DIVISION

The Investments Division oversees a program primarily oriented to the investment of cash balances which exist between the time of State revenue collection and disbursement. Interest on these investments accrues to the General Fund unless State law or regulation directs otherwise (State Finance and Procurement Article, secs. 6-222 through 6-226).

Governor's Coordinating Offices
Maryland Constitutional Offices & Agencies
Maryland Departments
Maryland Independent Agencies
Maryland Executive Commissions, Committees, Task Forces, & Advisory Boards
Maryland at a Glance


Maryland Manual On-Line

Search the Manual
e-mail: mdmanual@mdarchives.state.md.us

© Copyright Maryland State Archives