Office of the State Treasurer of Georgia: Market Research Report

Background

The Office of the State Treasurer (OST) of Georgia, established in 1993 under OCGA 50-5A-1, is responsible for the efficient and conservative management of the state's cash resources. Its primary functions include the receipt and disbursement of state and lottery funds, management of the state's cash resources, and oversight of various investment programs. OST plays a crucial role in ensuring the liquidity and financial stability of Georgia's state and local governments.

Key Strategic Focus

OST's strategic focus encompasses several core objectives:

Cash Management: Efficiently managing the state's cash resources to ensure liquidity and optimize investment returns.

Investment Programs: Administering investment pools such as Georgia Fund 1, Georgia Fund 1 Plus, and the Georgia Extended Asset Pool, providing local governments with safe and liquid investment alternatives.

Banking Services: Overseeing banking and merchant card relationships for state entities to ensure effective financial operations.

Savings Plans: Managing the Path2College 529 Plan and the Georgia STABLE Plan, which offer tax-advantaged savings options for education and disability-related expenses, respectively.

Financials and Funding

As a state agency, OST's funding is derived from the state's budget allocations. Specific financial details, including total funds raised and recent funding rounds, are not publicly disclosed. However, OST's operations are funded through the state's general fund, and it generates revenue by managing investments and providing banking services to state entities.

Pipeline Development

OST does not engage in product development or clinical trials. Its focus is on financial management and investment services for the state and local governments of Georgia.

Technological Platform and Innovation

OST employs various technological platforms to enhance its financial management capabilities:

Investment Management Systems: Utilizing advanced software to manage and monitor investment portfolios, ensuring optimal returns and compliance with state regulations.

Banking Platforms: Implementing secure and efficient banking systems to facilitate transactions and manage relationships with state entities.

Data Analytics: Leveraging data analytics tools to forecast cash flows and make informed investment decisions.

Leadership Team

The leadership team of OST includes:

Steve McCoy: Serving as State Treasurer since 1993, with prior terms from 1993-1997 and 2011-2019. He also served as Chief Investment Officer for the Office of the State Treasurer. McCoy has extensive private sector experience in public finance and investments, including managing an SEC-registered investment advisory firm and as Managing Director of Lehman Brothers’ Public Finance Division. He holds a BBA in Finance from the University of Georgia and an MBA from Georgia State University.

Leadership Changes

In May 2019, Governor Brian P. Kemp appointed Lynnette "Lynne" Riley as State Treasurer, making her Georgia's first female State Treasurer. Riley previously served as State Revenue Commissioner and as a State Representative. She resigned in July 2020, and Steve McCoy was reappointed as State Treasurer.

Competitor Profile

As a state agency, OST does not have direct competitors in the traditional sense. However, it operates within a broader financial ecosystem that includes:

Local Government Investment Pools (LGIPs): Similar programs in other states that offer investment options to local governments.

Private Financial Institutions: Banks and investment firms that provide financial services to state and local governments.

Strategic Collaborations and Partnerships

OST collaborates with various entities to enhance its services:

TIAA-CREF: Manages the Path2College 529 Plan on behalf of OST.

State Agencies: Works closely with state agencies to provide banking services and manage investments.

Operational Insights

OST's operations are characterized by:

Conservative Management: Prioritizing the preservation of capital and public trust in managing state funds.

Efficiency: Streamlining processes to ensure timely and accurate financial transactions.

Compliance: Adhering to state regulations and policies in all financial activities.

Strategic Opportunities and Future Directions

OST is focused on:

Enhancing Investment Returns: Continuously seeking opportunities to improve returns on state investments.

Expanding Savings Plans: Increasing participation in the Path2College 529 Plan and the Georgia STABLE Plan to provide more residents with access to tax-advantaged savings options.