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Treasurer briefing: idle pool earned about $249 million in FY2024; four state investment vehicles explained
Summary
The state treasurer's office programs—Local Government Investment Pool, Diversified Bond Fund, Idle Pool and Millennium Permanent Endowment Fund—were described to JFAC. The treasurer briefing noted the idle pool earned roughly $249 million in FY2024 and staff posted detailed interest‑by‑fund reports to SharePoint.
Christopher Lahoset, budget and policy analyst working with the Legislative Services Office, summarized the treasurer's office investment programs and recent interest earnings for the committee.
Lahoset described four primary programs the treasurer manages: - Local Government Investment Pool (LGIP): a short‑term, low‑risk pooled vehicle for local governments that invests in short‑term high‑quality securities. - Diversified Bond Fund (DBF): a longer‑horizon fund (typically 3.5 years or more) invested in higher‑quality bonds; requires a $250,000 minimum and carries a small administrative fee. - Idle Pool: the state treasury's daily cash management vehicle that balances incoming and outgoing cash and invests short‑term surpluses; Lahoset told the committee that "in fiscal year 2024, the idle pool earned over $249,000,000 in interest." - Millennium Permanent Endowment Fund (MPEF): long‑term fund from the tobacco Master Settlement Agreement that supports tobacco‑prevention programs and is managed to preserve principal and generate earnings to fund programs.
Representative Tanner asked how interest earnings are directed to particular funds and whether some interest bypasses legislative appropriation; Lahoset said the direction of interest is determined by statute and that the LSO had posted a SharePoint report showing interest earned by fund and agency. He said there is not a single code directing the destination of all interest earnings; multiple statutes govern different dedicated funds, and any code changes to redirect interest would require legislative action.
Why it matters: interest earnings from treasury portfolios materially affect fund balances and can boost agency receipts or provide general‑fund revenue depending on statutory routing; the committee requested posted reports showing interest by fund and the LSO confirmed those are available on SharePoint for review.
No committee votes were taken; staff said the treasurer's data and the SharePoint reports would be made available to members.
