Candidates running to become Louisiana’s next top money manager discussed the role of treasurer, social issues and investments, state debt and more in an online forum Wednesday.
This webinar was sponsored by the Louisiana Public Affairs Research Council, a nonprofit, nonpartisan research group. All three candidates for the Oct. 14 election participated.
They are vying to replace current state Treasurer John Schroeder, who is running for governor. In addition to managing the state’s investments, the Treasurer presides over the Louisiana Public Debt Commission, which oversees large-scale state and local government borrowing.
Who are the candidates?
John Fleming, a Republican who served in the Louisiana House of Representatives for eight years, boasted that he was the “most conservative” person in the race. While in Washington, D.C., Fleming helped found the House Freedom Caucus, whose members included former Florida Congressman and current Governor Ron DeSantis.
Fleming, a physician and Navy veteran, held three executive-level positions in the Trump administration, at the Departments of Health and Commerce, and as deputy chief of staff in the White House.
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Dustin Granger, a Democrat endorsed by the state party and Gov. John Bel Edwards, has been a financial advisor and investment manager for nearly two decades. He said he, like many Louisianans, is frustrated by “seeing so much poverty, seeing so many small towns hollowed out and friends and family leaving the state.”
Granger owns a small personal finance business and lives in Lake Charles. He said trickle-down economics is bad for the state.
Republican state Rep. Scott McKnight of Baton Rouge has worked in the financial services industry for about 25 years. He is Vice President and Director of Business Development for Cadence Insurance.
He described himself as a fiscal conservative and said, “The next state treasurer must aggressively oppose reckless spending and reckless proposals that jeopardize our fiscal future.”
To invest or not to invest?
Candidates debated whether to allow states to invest in and do business with companies that have generous environmental, social, and corporate governance (ESG) policies. Their approach to business considers factors such as sustainability, ethical business practices, and the treatment of employees, consumers, and communities.
Some conservatives have railed against ESG standards. For example, Mr. Schroeder sold nearly $800 million in state investments from BlackRock over its “anti-fossil fuel policies.”
The people vying to replace Mr. Schroeder belonged to his ally.
McKnight said investing in companies based on ESG principles is “not the best dollar return and goes directly against the current oil and gas business, which is the foundation of our economy.”
“Investing our tax dollars in an industry that supports our people would be contrary to our economy and our national values,” he said.
Fleming called himself “an energetic person who is all of the above.”
“When it comes to the investment of taxpayers’ money by the Treasurer, he should be purely objective in doing what is safe and gives the highest return on investment,” he said.
Fleming said he feels ESG investing is generally underperforming given the current state of clean energy technology.
Granger said any ban on ESG would be “deeply worrying” and “misguided” and challenged the idea that such investments would not work.
“The Secretary of the Treasury is a fiduciary of the state. We should not act like lobbyists for the oil and gas industry,” he said. “And if you eliminate entire specific parts of investing, entire investment industries like clean energy, it doesn’t make sense because you won’t be able to diversify your investments. So that’s Investing 101.” ”
national debt
Granger said he has experience helping people manage their debt and investments. He will serve in a similar role as treasurer and act as an advisor to the governor and legislature as provided in the state constitution.
He also said he has heard from smaller communities that accessing the bond committee can be difficult, and he will work to change that.
“A lot of them don’t have the staff to do it, and they don’t really know what’s out there or what they can do,” Granger says. “We need to work more proactively to ensure that communities across the state that don’t really have access have access to raise the funds to build attractive communities and quality of life. I think there is.”
Fleming said Congress, like Congress, faces a lot of pressure from outside. Therefore, further exclusion of those who advise legislators and governors, such as treasurers, could be helpful.
McKnight believes that while Congress writes the budget, the Secretary of the Treasury should also have a role. He believes his background as a lawmaker makes him ideal for the role.
“The relationships that I’ve built over the last few years as a legislator will give me an advantage in being able to advise the Legislature and the next governor on that level and … what the plan should be,” he said. Told. .
Targeting gun deniers
The state bond commission sometimes refused bond deals with banks that restricted their ability to do business with certain gun manufacturers. Some financial advisors in Louisiana warn that this could cost taxpayers.
“Our role in government is certainly to protect the Constitution and protect people from those who violate the Constitution,” Fleming said, arguing that this is a Second Amendment issue.
“The sale or trade of firearms is not a crime,” he said. “Unless you’re doing it illegally, which of course most people aren’t.”
Granger said it would be “absolutely crazy to me” not to work with banks for this reason.
“It’s crazy to me that they would even consider banning banks over this, even though we are not lobbyists for the (National Rifle Association),” he said. “It’s not our responsibility to be lobbyists for the NRA. They have a lot of money so they can take care of themselves. We are the people’s fiduciaries.”
McKnight landed at a middle ground, saying banks should “hope for consequences” but also “could come at a cost to the state.”
He said he would use competitive bidding in bond deals to get the best deals and keep potential political issues off the table.
pitch
Why do they think they are the best person for the job?
McKnight said he’s not running for the position simply because he’s bored and needs something to do. He believes his legislative and professional background makes him “uniquely qualified.” He said he would invest tax dollars wisely and not “in things that go against the principles of our country or harm our people.”
“Louisiana faces a new generation of problems, and it will take a new generation of leaders to solve them,” he said.
Fleming listed the state Republican Party, five parish Republican executive committees, two members of the Louisiana House of Representatives and one member of the Ohio House of Representatives as supporters.
“I believe we can create a new Louisiana that will catch up with Texas, Tennessee and Florida,” he said. “And we can bring young people back to a place in Louisiana where they can get jobs and start businesses.”
Granger said the state is at a tipping point and the opposition’s philosophy “just isn’t working.”
“Even the divisive politics that plague our state are a result of trickle-down economics, because they are unpopular,” he says. “So we need divisive politics to keep workers fighting each other. We need to get rid of all that.”