Ohio cities, schools try new investment program

COLUMBUS, Ohio (AP) - More than 60 Ohio school districts, cities and local governments are taking part in a new state program that can triple the yield on their taxpayer investments.

STAR Plus is a program that was launched in June. It adds the flexibility of some private-sector investment programs while securing public cash deposits through carefully screened federally insured banks.

Ohio Treasurer Josh Mandel says the program drives more public deposits to community banks. They hold a quarter of deposits nationally but issue half of all small-business loans.

City of Powell Finance Director Debra Miller says the city gets weekly rather than daily access to its money in order to collect higher returns. She says the trade-off has paid off.

Participating government entities have invested $160 million through the program so far.