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State Treasurer highlights record investment earnings, proposes 'baby bonds' pilot and seeks staffing
Summary
Treasurer Laura Montoya reported record earnings for the Treasurer's office and described growth in the local government investment pool. She requested staffing increases to handle a larger portfolio and outlined interest in a proposed baby-bonds initiative as a long-term wealth-building program for New Mexico children.
The State Treasurer's office told the House Appropriations & Finance Committee it managed roughly $17.3 billion in investments at the end of FY24 and recorded about $675 million in earnings for the fiscal year.
Nut graf: Treasurer Laura Montoya said the office's portfolio and trade volume have grown substantially in recent years and asked the committee for three full-time employees to manage increased workload, upgrade systems and cover critical positions (HR, procurement and cash management). She also described a proposed baby-bonds concept that would provide savings accounts for children born in New Mexico to help build wealth over time.
Key figures and asks: Treasurer Montoya told members the local government investment pool (LGIP) balance surpassed $2 billion; total funds managed were reported at $17.3 billion at FY24 year-end, with $675 million in earnings for that year. The office requested three positions and said reversions in the 300/400 categories in FY24 reflected procurement timing and delays due to supply-chain issues. Montoya asked that the committee consider funding to maintain core investment and risk-management systems (Bloomberg, Broadridge connectivity) and described recent hires including a new chief investment officer and portfolio manager.
Baby-bonds proposal: Montoya outlined a policy idea to create a government-funded trust (managed by SIC) that would deposit approximately $7,000 per eligible child at birth, grow at a conservative assumed rate (she cited a hypothetical 7% example), and be used when the child reaches adulthood for education, home purchase, business start-up or workforce training. She said details (funding source, residency requirements, governance) remain to be worked out and would require legislation and further committee consideration.
Staffing and operations: The treasurer said staffing issues reflect growth in accounts (about 1,100 bank accounts) and trade volume (approx. $30 billion). The office noted several real vacancies and recent retirement in a key state cash manager role and asked the committee to consider the LFC recommendation while recognizing the office's need for additional mission-critical staff.
Ending: Committee members praised the office's investment performance and asked for more detail on the baby-bonds concept; the treasurer said specific program design would be presented in follow-up materials and that the office would supply lists and data on LGIP participation and account oversight.
