What’s the story?
Republicans gained one state financial officer (SFO) position in the Nov. 5 general election, as Dave Boliek (R) defeated incumbent Jessica Holmes (D), and Bob Drach (L) in the race for North Carolina Auditor. Partisan control did not change for the 17 other SFO positions (10 treasurer and seven other auditor offices) up for direct election.
Going into the election, Republicans controlled 12 of the officerships on the ballot, compared to Democrats’ six. With the races decided, Republicans will control 13 to Democrats’ five.
Why does it matter?
SFOs often oversee state investments, such as public pension funds, giving them a key role in deciding if their respective states will incorporate ESG strategies into their portfolios. Some SFOs also have roles in directly implementing and enforcing pro- or anti-ESG laws and regulations and ensuring funds are invested in the best interests of beneficiaries.
What’s the background?
SFOs fall into three groups: treasurers, auditors, and controllers. Of the 106 SFOs in the U.S., 69 are elected, and 37 are appointed. Heading into the Nov. 5 election, there were:
- 40 Democratic SFOs/nonpartisan SFOs appointed by Democratic officials,
- 60 Republican SFOs/nonpartisan SFOs appointed by Republican officials, and
- Six nonpartisan SFOs who were appointed by a combination of Democrats and Republicans, nonpartisan officials, or multi-member boards.
In addition to the 18 seats that were directly elected, nine positions were indirectly affected. For more information about the effects of the election on unelected SFOs, click here.