Florida suspends withdrawals from state investment fund Dan Tracy and Aaron Deslatte | Sentinel Staff Writers 1:06 PM EST, November 29, 2007 Florida today suspended withdrawals from a state investment fund after cities, counties and school boards -- fearful of the fund's financial stability -- withdrew $3.5 billion in just one day. The State Board of Administration -- the governor, attorney general and chief financial officers -- voted unanimously to at least temporarily halt a run on the fund, which has reported withdrawls totalling $10 billion in the past several weeks. That's more than one-third of the fund's assets of $28 billion. Local governments fear they could lose their money because the state invested it in funds backed by loans to homeowners with questionable credit -- the same loans that have triggered an international credit crunch. Governments and agencies typically take money intended to pay for such basics as teacher salaries or road repairs and invest it in the short-term state fund so they earn interest before the bills come due. Alarmed local officials said the move by the SBA could jeopardize local governments' payrolls, if they are not able to take money out of the fund to pay employees. "We needed leadership today, and we didn't get it," said Bob Inzer, chief financial officer for Leon County.