Idaho state Treasurer Ron Crane’s Democratic challenger, Twin Falls CPA Deborah Silver, went on the attack in a televised debate between the two on Thursday night, charging that Crane should be fired as state treasurer for a fund transfer that auditors say cost state taxpayers at least $10 million. “In the business world, we know how this would end – the treasurer would be fired,” Silver declared. “The only way to fire this treasurer is with your vote. I am running to give Idaho taxpayers a choice for honest stewardship of their tax dollars.”

Crane protested that his office “vociferously disagreed with the findings of the legislative auditors,” and defended his actions in the transfer, which occurred after he said mortgage-backed securities the state had purchased in 2005, 2006 and 2007 were showing $70 million in losses as the housing market collapsed.

“I held those securities and rode out the storm, letting them come back in value toward par,” Crane said. “Last year, 2013, I had enough interest earnings and portfolio gains to wash out five of the seven securities and still show a profit of $122,000 for the general fund and $2 million for all the rest of the portfolios that I manage. I still have two of those securities in my portfolio. A year ago at this time, they were about $17.5 million underwater. Today, as of Friday, they are $9.6 million underwater. So they’re coming back, they’re moving in the right direction.”

Crane charged that legislative auditors wanted him to sell the securities at the time and realize the full $70 million in losses. But a critical state audit report didn’t suggest that; instead, it faulted him for transferring the securities from a local government investment pool to the investment fund for state money, shifting the losses to state taxpayers rather than local governments. You can read my full story here at spokesman.com.