Treasurer race focuses on unclaimed property, college savings

CEDAR RAPIDS - The race for the Iowa state treasurer's office this year features an incumbent seeking his ninth term and a challenger who has never held elective office.

Democrat Michael Fitzgerald, first elected in 1982, will face off Nov. 4 against Republican Sam Clovis, an economics professor and former talk-radio host who finished second in the Republican primary for U.S. Senate.

Much of the election has centered on unclaimed property programs started by Fitzgerald's office - including the Great Iowa Treasure Hunt - and College Savings Iowa, the program that allows parents to deposit money into a tax-free 529 college savings plan.

Fitzgerald said he is seeking another term to expand those programs, while Clovis said he would alter the 529 plans to work better for low- and middle-income families.

In a new term, Fitzgerald said, he would attempt to return $300 million in matured savings bonds from the federal government to Iowans who bought them.

Clovis said he would use state money to partially match initial contributions to 529 plans made by low- and middle-income parents. A family who started a 529 plan with $750, for example, would get an additional $250 from the treasurer's office under Clovis's plan.

Additional contributions by the family would not be matched.

'That is a way to break the cycle of poverty in Iowa, and I think this is a huge and positive investment,” Clovis said.

In addition, he said, he would work with Gov. Terry Branstad and the state board of regents to lock in public-college tuition rates in Iowa so that parents with a 529 plan would pay the rate of the year the account was opened - even if their child didn't attend college until 18 years later.

But Fitzgerald said he doesn't see that plan as feasible.

'Other states have tried to do things like that, and it's raised havoc in their own state,” he said, adding that it would be impossible to change tuition rates at private or out-of-state colleges.

To the extent that public and private colleges are in competition, Clovis said, the market would work out the price differences.

Clovis also has criticized Fitzgerald for what he said is $6 billion in unfunded liability in the Iowa Public Employees Retirement System state pension fund, and for running public service announcements for his office's programs during election season. Fitzgerald said the TV spots, in which he appears, serve a public purpose.

The outcome of the election likely won't be based on the issues, according to one analyst.

'It's based on the incumbent, and it's based on party affiliation,” said Christopher Larimer, an associate professor of political science at the University of Northern Iowa. 'I don't see the average voter paying attention to this race.”

Keith A. Laube, of Newton, of the Libertarian Party also is running for this position.

Candidate Bios:

Sam Clovis

' Age: 65

' Political party affiliation: Republican

' Home town: Hinton

' Occupation: Economics professor, former talk-radio host

' Previous political experience: U.S. Senate candidate

' Highest education: Ph.D. in Public Administration, University of Alabama

Michael Fitzgerald

' Age: 62

' Political party affiliation: Democrat

' Home town: Waukee

' Occupation: State treasurer

' Previous political experience: State treasurer for 32 years

' Highest education: Bachelor's degree, University of Iowa