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Treasurer's office briefs JFAC: idle pool earned about $249 million in FY2024; local and diversified pools support local governments and agencies
Summary
Treasure's office staff described four investment programs (LGIP, diversified bond fund, idle pool and the Millennium endowment) and confirmed interest directions are governed by statute and distributed by fund; idle pool interest was reported at about $249 million in FY2024.
Christopher Lahoset, a budget and policy analyst at the Legislative Services Office, presented an overview of investment programs managed by the State Treasurer's Office and summarized recent earnings for committee members.
Lahoset described four programs: - Local Government Investment Pool (LGIP): a short‑term, low‑risk pooled option for cities, counties, school districts and other local governments, holding short maturity U.S. Treasuries and similar securities. Idaho code 67‑12‑26 governs participant access and program operations. - Diversified Bond Fund (DBF): a longer‑term bond portfolio for agencies with a multi‑year horizon (about 3.5 years or more), benchmarked to a blended bank index; the DBF requires a $250,000 minimum investment and charges an annual fee (0.017%) deducted before distribution of interest. - Idle Pool: the daily cash management pool the treasurer uses to manage state receipts and disbursements; funds that are idle for short periods are invested in short‑term instruments. Lahoset reported the idle pool earned about $249,000,000 in interest in FY2024. - Millennium Permanent Endowment Fund (MPEF): the long‑term fund holding Master Settlement Agreement proceeds for tobacco prevention and related programs; it is managed for principal preservation and sustainable distributions.
On statutory direction of interest earnings, committee member Representative Tanner asked whether interest that accrues to particular funds flows back to this committee for appropriation. Lahoset said the statutory direction of interest is set in multiple code sections: some funds' earnings are available to agencies and not routed through the general fund, and changes would require legislative action to amend each fund's governing statute. He said LSO maintains a report by fund showing interest earned and that the spreadsheets have been posted to the committee's SharePoint.
Why it matters: interest earnings on large cash balances are a material revenue stream for many dedicated funds and the state idle pool; understanding which funds keep their earned interest and which flow to the general fund affects appropriation options and budget transparency.
Follow‑up: Lahoset indicated the office has posted a fund‑by‑fund report to the committee SharePoint and will provide additional detail about where interest distributions are directed by statute. No formal committee action occurred during the briefing.
