Wyoming legislators will look to amend the state constitution in order to invest reserve account money in the stock market. While there is risk associated with the move, State Treasurer Mark Gordon says that risk can be minimized with proper investing.
“Take some of those savings and invest them more broadly, into stocks not only bonds, so balancing the risks to make sure that the state’s savings actually not only return a little bit more…but are more defensibly invested.”
He says Wyoming’s investments overcame the economic downturn in the last decade.
“One of the great things about the Wyoming portfolio is that it performed better than virtually all of our peers on the downside. And that’s really our biggest concern, what happens if we have another recession or depression.”
Gordon says if the state continues investing well it can insulate the account. He says that the legislature’s rainy day fund is getting a 6 percent return on its 2-billion dollars, but he would like to double that. Gordon notes that the current approach also keeps the state from keeping up with inflation. If the legislature approves the proposal, citizens would be asked to vote on the proposed constitutional amendment.