As the campaign for Illinois treasurer winds down, a dispute over the Bright Startprogram is flaring up.
The college savings plan is managed by Oppenheimer Funds. It lost millions of dollars a few years ago, and Democratic candidate Mike Frerichs is criticizing Republicans for sticking with Oppenheimer to manage the program.
“Families lost tens of thousands of dollars individually. That meant that students had to take on a lot more debt when they graduated and that’s a real problem for our entire economy,” Frerichs said.
Republican Tom Cross said the program went through a period of struggle but has since recovered.
“Right now it’s increased its assets by about 50% from four or five years ago,” Cross said.
Nonetheless, Cross said he would re-bid the contract when the current one expires, and he would conduct quarterly audits of Bright Start.
“We want to make sure that the Bright Start program is safe and secure for our families and for our kids,” Cross said. “We would have an investment team specifically geared toward Bright Start.”
Frerichs accused current treasurer, Republican Dan Rutherford, of giving a no-bid extension to Oppenheimer.
“We’re going to re-evaluate opening up this contract and putting it out for bid,” said Frerichs.
Frerichs said he would also work to lower the fees paid by families.
Both candidates also talked about agriculture during separate appearances in Macomb.
Cross said he would ensure the Ag Invest program continues. He said the program can help farmers obtain loans at lower interest rates than what’s normally available.
Frerichs said he would help farmers transition to more sustainable practices by offering Link deposits, which would give farmers access to capital for buying machinery that is more efficient.
Both candidates believe the treasurer’s office should be combined with the comptroller’s office to save the state money.
