Davenport lawmaker aims to unseat longest-tenured state treasurer

DAVENPORT — Republican Davenport state lawmaker Roby Smith is aiming to unseat the country’s longest-serving state treasurer, Democrat Michael Fitzgerald, as the state’s elected banker.

The Iowa Treasurer’s Office manages taxes paid to the state, invests the state’s money and administrates savings programs, such as College Savings Iowa and IABLE, a savings account for Iowans with disabilities, and runs the Great Iowa Treasure Hunt, which returns unclaimed property reported to the state.

Fitzgerald, 70, of Waukee, was first elected in 1982 and most recently reelected in 2018. He is one of three Democrats in Iowa who won statewide seats — Iowa Attorney General Tom Miller and State Auditor Rob Sand are the others.

Fitzgerald has promoted his experience, saying he would continue promoting the state treasurer's programs — many of which started under his tenure. But, he said, he still sees work to do for Iowans saving for retirement and wants to start a 401(k) program for people without access to a retirement account through work.

Smith, 44, worked for 10 years as a banker before running for the Iowa Legislature, where he has been a senator for 12 years. He’s part-owner of the Quad Cities River Bandits, a minor league baseball team, and an unpaid member of the Quad Cities area U.S. Bank Board. As a senator, he led on changes to Iowa's voting laws.

If elected, Smith said he would advocate for tax cuts, promote financial literacy and increase the state's investment rating on its 529 College Savings program — a tax-advantaged savings plan to save for future education.

Smith has outraised and outspent Fitzgerald throughout the race. In the most recent filings in October, Smith reported raising nearly $177,000 to Fitzgerald’s $20,000. Unlike the Iowa Attorney General’s race, however, the treasurer’s race isn’t seeing significant investments from state and national Republican groups trying to unseat the Democratic incumbent.

Taxes

Smith and Fitzgerald disagree on the role the Treasurer's Office should hold when advocating for tax policies.

Smith pointed to a GOP-backed bill passed in 2021 that eliminated taxes on retirement income. Fitzgerald didn’t weigh in on it.

Smith said he would've registered in support of the bill because the treasurer invests money in the Iowa Public Employees' Retirement System fund. Fitzgerald said that's a legislative policy and said the tax bill didn't have a direct effect on the agency’s operations.

"I'll be the state treasurer that will register and also advocate for tax cuts at the Capitol," Smith said.

Smith has also criticized Fitzgerald's lack of response to a little-known administrative proposal that would've allow the IRS to get yearly, aggregated reports from bank accounts with a minimum of $600 with a goal to stop tax evasion. That proposal was since rolled back. Smith said he would've joined Republicans opposing it.

IPERS

In 2017, a Republican lawmaker introduced a bill to change IPERS, the state's pension fund for 360,000 public employees, from a monthly pension to a 401k-style contribution fund. The bill never made it out of a subcommittee.

A year later, Fitzgerald was up for re-election and campaigned on the issue, raising an alarm that Republicans could introduce changes to IPERS.

Smith chaired the State Government Committee at the time, and said that bill "didn't even make it to step one."

“It's a promise that we have made a promise that will keep and I am not advocating whatsoever to make changes to the IPERS program," Smith said.

529 Plan

Smith frequently has pointed to Chicago financial agency Morningstar downgrading 529 College Savings Iowa to "neutral" for investments. The company describes the rating as "average." Iowa's is among 23 state programs that are rated as such.

Fitzgerald said other financial advising firms have disagreed with the rating and he expects Morningstar to soon raise its grade.

Smith introduced and passed a measure to allow residents to contribute to their 529 investment plan until April. It previously cut off in December each year.

More to do

Fitzgerald said he wants to introduce a new 401(k) system for Iowans who don't have access to a retirement account through work, such as small business employees.

"There's a retirement crisis coming in our state," Fitzgerald said. "...Over half the people 55 years of age at less than $10,000 saved for retirement."