State treasurer candidates offer opposing views for office

JOHNSTON — The candidates for Iowa state treasurer displayed the stark differences in their respective visions for the office Friday.

Mike Fitzgerald, the Democratic incumbent, and Roby Smith, the Republican challenger, discussed their campaigns while recording this weekend’s episode of “Iowa Press” on Iowa PBS.

Fitzgerald, 70, from Waukee, has been Iowa’s treasurer since 1983 and is the longest-tenured state treasurer in U.S. history.

Smith, 44, from Davenport, has served as a state legislator since 2010 and owns an advertising and publication business.

The Iowa state treasurer manages and invests the state’s money in myriad accounts, including for its state workers retirement program. The treasurer also coordinates bonding and manages one program that allows Iowans to create a college savings account and another that returns unclaimed money to Iowans. Fitzgerald created both programs in Iowa.

“Short as possible, we’re the state banker. We are responsible for the money that the state has, which is substantial,” Fitzgerald said.

Smith said in addition to protecting Iowa taxpayers’ money, he believes the treasurer also should advocate for tax policies that lower state tax rates. He touted the Republican-led state tax cuts enacted by state lawmakers and Gov. Kim Reynolds in 2018 and 2022.

“You want to invest the money, get the best rate of return but also you want to be an advocate for tax cuts and returning more back to taxpayers,” Smith said.

Smith said, if elected, he would lobby for tax cut legislation and criticized Fitzgerald for not doing so.

Fitzgerald said the treasurer is responsible for managing the state’s finances — not weighing in on tax policy.

“Our responsibility in the treasurer’s office is taking responsibility for the funds the state has, and we’ve done a great job of doing that. That is what our mission is: Keeping the money safe,” Fitzgerald said. “Now, if the legislators and the governor want to increase taxes or decrease taxes, that is their decision. It’s not something that directly affects programs that we run in the state treasurer’s office.”

Smith also criticized Fitzgerald for a recent rating downgrade of the state’s college savings plan, College Savings Iowa, by the Chicago-based financial services firm Morningstar.

In its annual ratings, Morningstar recently lowered its rating of College Savings Iowa to “neutral,” which is the fourth of five ratings and which the company describes as “average.”

According to Morningstar, three state programs are rated gold, 11 silver and 18 bronze. Iowa’s is among 23 programs rated neutral. Seven are rated negative.

“While the Treasurer provides a unique level of stability, the state has continued to disregard (the investment management company) Vanguard’s best thinking and instead forces outdated market-timing risks in its Aggressive Growth and Growth tracks, warranting a downgrade,” Morningstar senior analyst Madeline Hume reported.

Fitzgerald countered that he believes part of the downgrade was the result of miscommunication, and that he believes Morningstar will soon move the program’s rating back up.

The College Savings Iowa program has more than 347,000 accounts, which average more than $18,000, according to figures from the treasurer’s office.

“Iowa Press” can be seen at 7:30 p.m. Friday and noon on Sunday on Iowa PBS; at 8:30 a.m. Saturday on Iowa PBS Word; and online at iowapbs.org/iowapress.

Comments: (515) 355-1300, erin.murphy@thegazette.com