JEFFERSON CITY — Gov. Jay Nixon and State Treasurer Clint Zweifel are heading to St. Louis and Kansas City to sign legislation that could allow Missouri to earn more interest on its deposits.
Missouri limits the amount of interest state government can earn from local banks on time deposits. The legislation would eliminate the interest cap by 2014.
The bill also broadens Missouri's linked-deposit program. Under that program, the treasurer deposits money in banks at lower interest rates so that the banks can offer cheaper loans to small businesses and agricultural projects.
Signing ceremonies are scheduled for Monday. Zweifel had urged lawmakers to approve the changes during the legislative session.