Incumbent Democratic Treasurer Beth Pearce faces a challenge from Burlington financial analyst Richard Dunne in next week's primary election. The two candidates disagree on some of the key issues facing the treasurer's office.
In many ways, this race is a study of contrasts. Incumbent Beth Pearce has served three terms as state treasurer and has more than 30 years experience in the financial field.
Richard Dunne is a former financial analyst for Bloomberg who is making his first run for elected office.
Dunne, 31, says his qualifications come from his academic and business background. He says he doesn't think having a political background is always important to run for public office in Vermont.
A state bank for Vermont?
In a debate with Pearce on Vermont Edition Tuesday, Dunne said he is a strong proponent of a plan to create a state bank in Vermont.
He says it would be modeled after the Bank of North Dakota which is the only state bank in the country.
Dunne says a Vermont state bank would be an important economic development tool because it could offer loans to emerging businesses at a lower interest rate than most commercial banks.
“In doing so it creates a symbiotic relationship with the business owner by allowing them to have a lower interest and be able to afford that monthly payment that will open up a rural business,” Dunne says. “It really could change the game when it comes to economic development."
Pearce doesn't support the creation of a state bank; she says the plan is too risky because its accounts are not insured by the federal government.
She also argues that Vermont already has a mechanism in place to assist new businesses with loans.
“VEDA – the Vermont Economic Development Authority, which is our economic development group – actually has a higher risk position with its loans than the Bank of North Dakota. So we actually do take positions to try to promote economic development,” Pearce says.
Divestment disagreement
The two candidates also disagree on the need for the three state pension funds to divest their holdings in fossil fuel stocks.
Dunne supports divestment, and says it's the major reason that he's challenging Pearce.
He says divestment sends a clear message to financial markets that Vermont is serious about climate change.
Dunne also thinks these fossil fuel holdings are a bad investment for the future.
“It is in our best interest to divest not because of social reasons but because of financial reasons,” Dunne says. “And that is being displayed across the country and across the world in many different ways. A lot of big hedge funds and a lot of pensions are starting to look at the risks and they are deciding to divest.”
Pearce has urged the State Pension Investment Boards not to divest at this time, and she notes that these holdings represent a fraction of the billions of dollars invested in the pension funds.
She says her office makes recommendations about investments based on solid financial information, not social policy.
“We have a fiduciary responsibility of stewardship of those taxpayer dollars, and the dollars for the members of the system. When those dollars go into a trust we are obliged to maximum return for those individuals,” she says. “So … I'm going to be guided by facts not by politics."
The two candidates do agree on a number of issues: Both Pearce and Dunne say steps need to be taken to improve the financial literacy of Vermonters, and they support proactive measures to strengthen the state's overall pension system.
