State of Michigan Treasurer

State of Michigan Treasurer
Post	Treasurer of Michigan
Body	State of Michigan
Incumbent	Rachael Eubanks
Incumbentsince	2023
Style	The Honorable
Residence	Lansing, Michigan
Appointer	Governor of Michigan
Termlength	At the pleasure of the Governor of Michigan
Formation	1837

State of Michigan Treasurer

The Treasurer of Michigan is a statewide official charged with overseeing the State of Michigan's fiscal operations, cash management, and debt instruments. The office interacts with the Michigan Legislature, the Governor of Michigan, the Michigan Department of Treasury, and external entities such as the Securities and Exchange Commission, Municipal bond underwriters, and credit rating agencies including Moody's Investors Service, Standard & Poor's, and Fitch Ratings. The treasurer's role touches on matters involving the Michigan Constitution, Michigan Compiled Laws, and statewide fiscal policy debates involving figures like Gretchen Whitmer and predecessors.

Role and Responsibilities

The treasurer coordinates with the Governor of Michigan, the Michigan Legislature, and the State Budget Office to implement fiscal strategy, reconcile accounts with the Michigan Department of Treasury, and oversee interactions with financial institutions such as JPMorgan Chase, Bank of America, and the Federal Reserve Bank of Chicago. Responsibilities include administering state trust funds, managing municipal finance programs, and supervising programs tied to the Internal Revenue Service's federal-state fiscal interfaces and the U.S. Department of the Treasury. The office liaises with statewide entities including the Michigan Economic Development Corporation, the Michigan State Housing Development Authority, and the School Aid Fund.

History and Officeholders

Since Michigan's admission as a state in 1837, treasurers have included figures active in state politics, fiscal crises, and reform efforts. Early officeholders served during periods involving the Panic of 1837 and the expansion of railroads in Michigan. Notable treasurers have dealt with events tied to the Great Depression, the 1970s energy crisis, and the 2008 financial crisis. Prominent contemporaries and allies of treasurers have included governors such as Jennifer Granholm, John Engler, and Rick Snyder, and legislative leaders in the Michigan Senate and Michigan House of Representatives. The office evolved alongside institutions like the Michigan Department of Treasury and the Michigan Treasury Building in Lansing, Michigan.

Appointment and Qualifications

The treasurer is appointed by the Governor of Michigan and typically confirmed by the Michigan Senate under procedures derived from the Michigan Constitution of 1963 and relevant provisions of the Michigan Compiled Laws. Appointees often possess backgrounds in finance, law, or public administration, having worked with organizations such as the U.S. Department of the Treasury, KPMG, Ernst & Young, the Office of Management and Budget (United States), or municipal treasuries in cities like Detroit, Grand Rapids, and Ann Arbor. Legal and ethical qualifications reference state statutes and oversight by entities like the Michigan Attorney General and the State Treasurer's Office's internal counsel.

Powers and Duties

Statutory powers derive from the Michigan Compiled Laws and executive directives issued by the Governor of Michigan. The treasurer authorizes disbursements, supervises collections of state receipts including income tax and sales tax remittances, and issues debt instruments such as general obligation bonds and revenue bonds for projects in coordination with municipal issuers and authorities like the Michigan Finance Authority. Duties extend to managing the state's cash flow with the Federal Reserve System, administering tax credit and incentive programs involving the Michigan Economic Development Corporation, and ensuring compliance with federal statutes administered by agencies like the Internal Revenue Service.

Organizational Structure and Staff

The treasurer leads the Michigan Department of Treasury, which contains divisions responsible for revenue administration, debt management, cash operations, and fiscal forecasting. Key subordinate offices include the Office of Revenue and Tax Analysis, the Office of Debt Management, the Office of Cash and Investment Management, and the Office of Financial Management. Staff often comprise certified professionals from organizations such as the Government Finance Officers Association, the American Institute of Certified Public Accountants, and academic partners like University of Michigan and Michigan State University.

Budget and Financial Management

The treasurer develops and implements strategies for managing the state's treasury across the State Budget process coordinated with the Governor of Michigan's executive budget, the Michigan House Appropriations Committee, and the Michigan Senate Appropriations Committee. The office maintains relationships with credit rating agencies including Moody's Investors Service, Standard & Poor's, and Fitch Ratings to support bond issuances for capital projects involving the Michigan Department of Transportation and public authorities such as the Michigan State Housing Development Authority. Fiscal management practices align with standards from the Governmental Accounting Standards Board and reporting to audit institutions like the State Auditor General of Michigan.

Notable Initiatives and Controversies

Treasurers have led initiatives on debt restructuring, pension liabilities tied to the Michigan Public School Employees' Retirement System and the Michigan State Employees' Retirement System, and tax administration reforms affecting entities such as the Michigan Department of Treasury and local governments in Wayne County, Oakland County, and Macomb County. Controversies have arisen during fiscal crises like responses to the 2008 financial crisis and debates over emergency management in Detroit tied to officials such as Kevyn Orr. Other public controversies involved coordination with federal programs like the American Rescue Plan Act of 2021 and disputes with credit rating agencies and bondholders over restructuring terms.

Category:Politics of Michigan Category:State treasurers of the United States