Missourians could save the state more than $328,000 each year by receiving their benefit or payroll checks electronically.

Holden announced the paperless check plan Friday during a visit to Southeast Missouri.

"It makes sense," Holden said. "It's cost-saving and more efficient. I'm trying to push us into the 21st century."

People who receive Social Security, Aid to Families with Dependent Children, unemployment and veterans benefits or state and federal payroll checks could take advantage of the program.

A list of participating banks should be available by October and will be distributed to local benefit offices.

Writing paper checks for AFDC recipients now costs the state 52 cents per check. It costs Missouri taxpayers $535,092 to issue the 85,000 AFDC checks each month. With direct deposit, the checks will only cost 10 cents per "check," a savings of $328,644 a year.

Using direct deposit will mean receiving checks quicker and will reduce fraud, Holden said. It also allows social service recipients to learn about savings and checking accounts, Holden said, adding that it could move them one step away from welfare.

Of the 450,000 checks issued each month by the department, 60,000 are payroll checks. But only 30,000 are issued by direct deposit. The remainder are still written on paper. Holden's office was the first state agency to have 100 percent participation in the direct deposit payroll program.

"My hope is that Missouri will be the state that writes a paper check only when it absolutely needs to," he said. Most people who are not enrolled in a direct deposit program are probably still fearful of the unknown, he added.

Creating a statewide paperless check-writing system is only one of the innovate programs that Holden has created. He ran for office in 1992 on a campaign to upgrade and change the focus of the state office. He is seeking re-election in November.

Holden said he has been successful during his first term in office. He has managed the state $13 billion revenue by promoting programs that benefit the state economy.

One of those programs is MISSOURI FIRST. The program links market-rate deposits of state funds to banks and financial institutions. It is available for both farmers and businesses in the state.

Missouri banks agree to pass the savings from the market deposits on to eligible borrowers as low-interest loans.

Two Southeast Missouri farmers benefited from the agriculture program this week. A Marble Hill business was able to expand and create 14 new jobs under a similar program for businesses. In his three years in office, Holden said he has helped create 10,000 jobs.

He also has helped create affordable housing projects in the state through the Housing Development Commission. Holden serves on the board of directors for the commission.

Another major accomplishment for Holden was creating a written investment plan for the state, he said. There was not such a plan prior to 1992.

Now Missouri is ranked the third-best financially managed state in the country by Financial World magazine.