The House Oversight Committee held its third hearing to reset expectations of state agencies on April 3 with Treasurer Brad Briner and Secretary of State Elaine Marshall.

Treasurer: Briner seeks better investment returns and lower health care costs

Briner told members of the committee that the Department of the State Treasurer’s primary responsibility is to “manage the balance sheet of the state,” managing “the state’s assets and liabilities.” He cited the state’s AAA bond rating as a sign of success, just as the budget director and the controller did in their earlier appearances before the committee.

Pension investment management and the State Health Plan stood out as two areas where the Treasurer has been falling short. Briner said he aims to hit the target 6.5% annual return for pension investments. If the fund had managed that in recent years, he said, it would have eliminated the pension system’s $16 billion unfunded liability.  He added that the state should be at least average among state pension plans.

The State Health Plan should deliver health care outcomes that are valued that the state can afford. “We’re not doing that right now.” As a result, State Health Plan could have $507 million deficit in 2026.

He reported that the unclaimed property division exceeded its goal of sending out more than $100 million a year and hopes a 12-week partnership with OpenAI will help find the rightful owners of more unclaimed funds.

Members had questions for Briner on his modernization proposal including the plan to move from sole fiduciary to an investment committee with appointments from the governor and legislative leaders along with the Treasurer himself. The modernization plan would also allow investments in cryptocurrencies and more flexibility across asset classes.

Briner pushed back on a suggestion that the state has room to borrow more noting the unfunded liabilities for the retiree health benefits and pensions bring the total obligation of the state to $52 billion.

On a more positive note, Rep. Dean Arp (R-Union) and Briner highlighted the state’s reduction in bonded debt over the past 13 years from $6 billion to $2 billion. Rep. Tim Reeder (R-Pitt) asked Briner for details on pilot programs to encourage state employees on the State Health Plan to seek low-cost care.

Secretary of State: Responsible for records

The Secretary of State’s office is where businesses and charities go to register, renew, and file annual reports. It’s where lobbyists and notaries do the same. The office also registers securities, land records, and advance health care directives. Marshall said the General Assembly has entrusted her office with such a wide variety because “we’re pretty good database managers.”

Members asked Marshall about areas that fall under the Secretary of State that are obsolete and could be statutorily removed, including the membership campgrounds, phone sales registration and bonding, cable television, franchises. While not weighing in on the value of legislation, Marshall noted that there are only a handful invention developers registered in the state.

In an otherwise cordial session, Marshall’s statement that a lack of space led to staff working in remote or hybrid roles drew a skeptical response. She also indicated that working remotely is a quiet way to provide people by allowing them to cut commuting cost. Marshall’s comment about productivity of remote workers suggested that some of them are in the agency’s call center. Members are seeking more details.  

The House Oversight Committee will continue its series of hearings asking fundamental questions of agency secretaries and directors March 13 at 9 a.m.

The committee will hear first from Department of Information Technology Secretary-designee Teena Piccione, Office of State Human Resources Director Staci Meyer, and Department of Administration Secretary-designee Gabriel Esparza.

State Controller Nels Roseland, rescheduled from February 26, will testify in the afternoon.

“We learned a lot during our first Oversight hearing. As we drill down to the one primary mission of each agency, we want to hear how that makes a difference for our citizens,” Co-Chair Jake Johnson (R-Polk) said.