Granite official: Large PTIF balances reflect committed reserves and obligations, not discretionary cash

Todd Haber, business administrator for Granite School District, told the Utah State Board of Education Legislative Board that large balances in the Public Treasurers' Investment Fund, or PTIF, reflect legally committed reserves and timing of receipts, not unallocated operating cash.

"The PTIF account is like a bank account, if you will. We receive monies and we need to put them somewhere, and so we put them into the PTIF account," Haber said during the board's legislative meeting information item. He explained that PTIF holdings are “fund agnostic” — the state treasury holds dollars regardless of whether they came from local property tax levies, state sources or federal grants — and that fund accounting, not the bank balance, governs how those dollars may be spent.

Why it matters: The PTIF balances have attracted legislative and media attention; board members said they wanted a clearer district perspective before discussing policy responses. The explanation affects how legislators and the public interpret large aggregate balances reported for school districts.

Haber told board members that multiple categories commonly held in PTIF can produce large balances: an allowed rainy‑day reserve of up to 5% of operating revenue held by action of a local board; fully funded other post‑employment benefits (OPEBs) that some districts chose to prefund after state direction more than a decade ago; reserves for self‑insurance programs such as health and workers' compensation; and capital funds or bond proceeds that arrive in lump sums and are held until construction payments are due.

"If you're going to build a high school — $100,000,000 plus — if you're going to build a junior high you're $60,000,000 plus...multiply that out and say that's how much money the district will have on hand," Haber said, describing Granite's approach of holding capital levy funds to pay projects on a pay‑as‑you‑go schedule to avoid debt service costs.

Board members pressed for specifics. Member Carey asked whether the $365,000,000 figure shown on a backup report represented an average daily balance from Jan. 1, 2018, through Dec. 31, 2024. Haber confirmed that the report reflected an average daily balance of $365,000,000 as shown on the backup materials. When asked what portion of that total was free, uncommitted revenue, Haber pointed the board to Granite’s audited financial statements for fiscal 2024 and said “there's about $9,000,000 that is not committed to a specific project.”

The board also raised questions about reported interest earnings. A member cited $67,000,000 of interest on a statement; Haber said the district's audited financial statements reported $13,000,000 of interest earnings and that he would need to reconcile the different presentations. "I would have to take a minute and review this statement here to reconcile what is being reported as interest earnings there and what I report on a fully accrued accounting basis," he said.

Member Boggess asked whether the 5% rainy‑day allowance is required or optional; the answer given by Haber was, "It's allowed. It's an up to 5%." Members also asked whether PTIF rules apply to charter schools; Haber said that public entities across the state — districts, charters, cities and counties — use PTIF for Treasury management and that similar cash‑flow and capital timing issues can lead to elevated balances for any public entity.

The board treated the item as information and took no formal action. Deputy Superintendent of Operations Scott Jones introduced the presentation and closed the item after questions.

Ending: Board members said the explanation helped clarify why point‑in‑time PTIF balances can appear large and noted differences between bank balances and legally restricted fund balances. No policy changes were proposed during the meeting.