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County No. 2 Contributor To Frozen Investment Pool

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By ANTHONY McCARTNEY, The Tampa Tribune

Published: December 4, 2007

TAMPA - When top Florida leaders meet this morning to try to fix a troubled state investment pool, Hillsborough County officials will be watching closely.

They should be; Hillsborough has the second-largest amount of money left in the state-run fund. The only entity that has more money tied up in the fund than Hillsborough County is the state-run property insurance provider, Citizens Property Insurance Corp.

Top officials, including Gov. Charlie Crist, on Thursday put a halt to withdrawals from the investment pool run by the State Board of Administration after local governments sapped $10 billion in two weeks.

Assets controlled by Hillsborough County government alone top $871 million, about a third of the money that county governments statewide have left in the pool. Neighboring Pasco County ranks second among county governments, with nearly $487 million still invested in the pool.

Many local governments, including counties, cities and school boards, withdrew their shares of the fund amid fears some of the investments were backed by mortgages, which have recently fallen out of favor as the housing market worsens.

Hillsborough officials said this past week they didn't plan to make any withdrawals, but that could change. Deputy Clerk of Court Dan Klein said Monday his office would watch today's meeting closely and "act accordingly," depending on whether withdrawals are allowed.

County commissioners also plan to discuss what to do about the money left in the pool. Commissioner Brian Blair said he intends to ask for a change that will limit how much the commission can allocate to the pool.

"My primary concern is that we preserve the taxpayers' money," Blair said.

Crist and others could vote to reopen the fund for withdrawals today. Private consultants have recommended splitting the investment pool, isolating worrisome ventures.

Many governments, including Hillsborough County schools, rely on quick access to the investment pool for payroll. While the district has a backup account to make sure its workers get paid, its $573 million remaining in the fund makes it the top contributor among school districts statewide.

Schools Superintendent MaryEllen Elia said the district has made projections through the end of February. The agency can meet all of its obligations because it is currently receiving property tax collections. After that, she warned, district coffers could be drained without access to the investment fund money.

Other local agencies, such as sheriff's departments in Polk and Hillsborough counties, and the Hillsborough clerk of court, tax collector and property appraiser offices, all rank within the top five investors left in their respective brackets.

About 86 percent of the investment pool remains in relatively safe investments, said Simon Mendelson, a consultant hired by the state to recommend changes that will alleviate officials' fears statewide. The remaining 14 percent could be isolated and allowed to recover somewhat from the rapid withdrawals by local governments in recent weeks, he said.

Information from The Associated Press and Tribune reporter Catherine Dolinski was used in this report. Reporter Anthony McCartney can be reached at (813) 259-7616 or amccartney@tampatrib

.com.

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