|
 E-mail Story Print Friendly
Opinion editorials Handling of Pit Appeal Calls for a Time-Out |
Front Page 
opinion editorialsThis editorial first appeared in the Albuquerque Journal. It was written by editorial page staff and is unsigned as it represents the opinion of the newspaper rather than the writers
.
Saturday, June 13, 2009
Sink Time, Discussion Into Investment Reform
In the wake of a state investment-fund drama that has New York reeling and New Mexico dealing with the fallout, it makes sense for the state to re-examine how it places, tracks and manages its investments.
Sen. Tim Keller, D-Albuquerque, is asking lawmakers to look at raising the qualifications bar for members of investment boards, requiring more detailed tracking of fund performance and hiring investment experts instead of outside consultants.
Two out of three wouldn't be bad.
• It's logical to have people with knowledge of financial systems sit on investment boards — that's a complicated world with its own terminology, not a book club. It also makes sense to appoint people who will show up. There wasn't a quorum of the State Investment Council at three meetings in 2007 and 2008 — even though the nine members can participate by telephone. At six meetings during that period, in-person attendance was three or fewer members. While we're at it, it's just good government to dilute one person's influence over the SIC — the governor serves on it and appoints six of the members. A recommendation to add four members picked by legislative leaders went nowhere this session and should be revived. While that might not improve results, it would diversify the discussion.
• The idea of requiring more detailed tracking of fund performance would provide oversight while allowing the state to change course before billions in New Mexicans' money heads south.
• Keller argues that accountability would be improved by hiring a financial expert instead of contracting with consultants. But accountability can be built into a contract and executed more quickly and cleanly than terminating a classified state worker. The SIC's firing of Aldus Equities demonstrates that.
Many lawmakers have advocated for reforms similar to those Keller is proposing, and they deserve a thorough examination either in a special or the next regular session. If there was ever a time ripe for reforming state investment practices, this is it.
You also can send comments via our comment form
|
|
