LITTLE ROCK, Ark. — A loophole uncovered Tuesday, reveals the Arkansas Treasury department has been betting more than a billion in taxpayer dollars in some risky investments.
That practice will stop with the State Board of Finance voting unanimously to tighten restrictions and require more diversity.
A financial report requested by the Treasurer of State found the treasury has been putting nearly half of its’ money into other investments. While the payoff has netted the state record returns, it also comes with what analysts call a significant risk.
“This past fiscal year we returned the most money that’s ever been returned to Arkansas,” Treasurer Dennis Milligan said. “There’s been no violation of policy let me make that very, very clear.”
The investments didn’t violate a policy, but took advantage of a big loophole.
According to Milligan, the State Board of Finance voted to create the loopholes last year.
Milligan agrees it’s a risk he doesn’t want to take again, since if the funds tank the state could lose a chunk of their investments.
“I’ve always said investing is a work in progress,” he said. “I’m more than willing to make adjustments.”
Milligan says they’re already looking to reinvest and diversify their portfolio.