To try and tackle a potential deficit for the state, Pennsylvania Governor Tom Wolf has announced that three state funds, including funds that handle workers’ compensation, will be managed by the state rather than private interests. The governor estimates the move will save Pennsylvania $5.6 million a year, reports newsworks.

According to the Central Penn Business Journal the funds have a combined worth of $2.3 billion. The Workers’ Compensation Security Fund, the State Workers’ Insurance Fund and the Underground Storage Tank Indemnification Fund were managed by outside investors but will be managed by the Treasury of Pennsylvania. The State Workers’ Insurance Fund is currently managed by 24 different firms, costing the state $3.3 million a year. The state is estimated to manage this fund for $145,000 instead. The Workers’ Compensation Security Fund is managed by 12 various companies costing the state $2.9 million. The state is estimated to do this for $500,000 a year saving $2.4 million, if returns stay consistent as well.

Tom Wolf said, “With the commonwealth facing a serious budget deficit, we cannot afford to hand money from any fund to Wall Street when we could better manage the money ourselves and save millions of dollars.”

He also has indicated that he would like to see other state funds go this direction, but large funds like the state workers fund and teacher pension fund would require cooperation and support from legislators and worker groups before changes could be enacted.