STAR Plus Program Shows Strong Growth Surpassing $280 Million in Local Government Deposits
COLUMBUS - State Treasurer Josh Mandel announced today that the STAR Plus local government deposit program for cash reserves has surpassed $280 million in local government deposits just two months after receiving its first deposit. STAR Plus is a safe and secure investment option for government subdivisions such as schools, cities, counties, townships, libraries, and other public entities which provides weekly liquidity and very competitive yields.
“STAR Plus continues to grow in deposits because it provides local governments with the safety, liquidity and yield that they require, while generating greater return than many other available investment alternatives. In an era of belt-tightening across Ohio, we are very pleased to be able to offer local governments tools to stretch their resources because we know that in this economy every dollar counts,” said Treasurer Mandel. “STAR Plus participants have told me that the program is allowing schools to invest in technology and put money into classrooms. It can also allow cities to provide valuable services, and helps government entities diversify their investment portfolios. STAR Plus is a win-win-win for taxpayers, local governments, and community banks across our state that fuel small business growth.”
An increasing number of local governments are enrolling in STAR Plus to provide security and increased yield for their cash reserves. The benefits of this new and innovative program are being felt immediately by government subdivisions across Ohio.
“We've been waiting for an opportunity just like this, and we were excited to see it. We were kind of stuck at that point. So this is great. As soon as I got that packet, I said this is what we've been waiting for,” said New Riegel Schools Treasurer Jane Schalk after a recent STAR Plus tour with Treasurer Mandel.
“As soon as I saw it, I knew it was a good fit for the city because we're so small. An extra tenth of a percent really is a big help because all our other revenue sources, after interest income, are really small," said City of Powell Finance Director Deborah Miller. "In the city of Powell, we're always looking for ways to fund capital improvement. Right now, our tax base covers our general operating expenses, but we don't have anything for capital improvements.”
Over 92 Ohio government subdivisions have established STAR Plus accounts, depositing $280,035,023 as of August 27. This includes 35 schools, 11 townships, 12 cities, 9 libraries, and 7 counties, amongst other government entities.
STAR Plus is available to STAR Ohio participants and is endorsed by the Ohio Treasurer’s office. The program provides safe and competitive returns on cash deposits for Ohio local governments. It is modeled after established private-sector programs and will allow government fund managers to place deposits in a carefully-screened network of hundreds of Federal Deposit Insurance Corporation (FDIC) insured banks via a single convenient account. Funds will be deposited in multiple banks to provide the maximum deposit insurance amount as set by the FDIC, currently $250,000, providing the backing of the full faith and credit of the U.S. Government. Public funds deposited in the program are fully FDIC insured with no credit or market risk while earning a competitive yield, currently 25 basis points (0.25%). The minimum amount required to open a STAR Plus account is $500,000, and the current maximum amount is $15 million per depositor. The program offers daily deposit capability and weekly liquidity with penalty-free withdrawals for public funds managers.
For more information on STAR Plus, please visit: www.STAROhioPlus.com or www.OhioTreasurer.gov.
All information contained herein is for informational purposes and should not be construed as investment advice. It does not constitute an offer, solicitation or recommendation to purchase any security.
1 FICA® is not a member of FDIC, but the banks where money is deposited are FDIC members. The FDIC is an independent agency of the U.S. government that protects the funds depositors place in FDIC insured institutions up to $250,000 per institution. FDIC deposit insurance is backed by the full faith and credit of the U.S. government.
 Performance quoted represents past performance, which is no guarantee of future results. Current yield and maximum FDIC insurance coverage is indicative for STAR Plus and may change without notice due to changes in market or business conditions. Current yield is the net yield to client based on APYE for the prior month. For current yield call 1 (855) 648-PLUS (7587). If a participant has cash at any depository institution that is in the FICA® network then they may not receive full FDIC insurance coverage on deposits at those institutions. Funds may be submitted for deposit only after a depositor enters into an administrative agreement. The account documents contain important information and conditions regarding the depositing of funds; these documents can be found at www.STAROhioPlus.com.