AT ISSUE: 2nd INJURY FUND
HOW SOLVENT IS IT?
HOW SOLVENT IS IT?
Kenny Hulshof's campaign for Governor is questioning State Treasurer Sarah Steelman's belief that Missouri's 2nd Injury Fund doesn't face serious solvency problems.
The Hulshof campaign again points to a 2007 state audit that found the fund will likely run out of money this year. Another investigation by PricewaterhouseCoopers found that it could become bankrupt by 2009.
"Two separate investigations into the financial well-being of the Second Injury Fund (SIF) conclude that it’s not a matter of ‘if,’ but ‘when’ it will become insolvent. However, State Treasurer Sarah Steelman, the custodian of the fund, denies the existence of serious fiscal problems, which could have devastating consequences for Missouri taxpayers," said Hulshof spokesperson Scott Baker in a release Wednesday. "Guess who would have to cover that cost: Missouri taxpayers," he added.
The Steelman campaign pointed to the average monthly balance of the fund under Steelman compared to former Treasurer Nancy Farmer.
From January 2001 to December 2004, that balance was about $16.9 million dollars. From January 2005 through May 2008, under Steelman, the balance was about $32.1 million.
Yesterday, Steelman spokesperson Spence Jackson said he did not agree with the state audit predicting financial problems for the fund.
"If Steelman was as fiscally conservative as she claims, she would be leading the charge to reform the Second Injury Fund before it goes belly up and wallops Missouri taxpayers,” said Baker. "Instead she has chosen to join with the fund’s supposed defense attorney, Jay Nixon, and put the interests of trial attorneys ahead of Missouri’s best interests. It will be the people of Missouri who pay for the inaction of Sarah Steelman and Jay Nixon," Baker added.