Roland M. Machold will be hard to replace when he retires as director of the New Jersey Division of Investment in June.
Some in the state at least recognize it will be more expensive to fill his shoes; a bill proposes to more than double the salary for the job to $200,000. That raise is long overdue.
But with the division's current budget of only $5 million for a staff of 68 to manage a $73.1 billion fund, legislators in the state need to realize an era is passing.
The era of bargain asset management is over. Absent a far bigger budget, it's time for a major institutional change to outside management.
Leadership and brilliance such as Mr. Machold has demonstrated aren't qualities easily found, especially when they come with his loyalty and longevity that has given the division priceless stability.
But there are ever more markets, asset classes, investment instruments to consider. Monitoring, evaluation and risk management have become more sophisticated and demanding.
It's all a daunting task to do in-house. Finding and maintaining a staff is tough. Perhaps the division should reorganize, handle only policy, analysis and evaluation, and turn over investment management to outside management.