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Treasurer outlines investment pools, idle‑cash earnings and reporting: LGIP, DBF, idle pool and Millennium fund explained
Summary
The state treasurer27s office described four investment programs: the Local Government Investment Pool (LGIP), Diversified Bond Fund (DBF), the state idle pool and the Millennium Permanent Endowment Fund; the presentation noted the idle pool earned about $249 million in FY2024 and staff placed supporting reports on committee SharePoint.
Christopher Lahoset, budget and policy analyst with the Legislative Services Office, summarized the state treasurer27s investment programs for the Joint Finance‑Appropriations Committee and noted that staff had posted detailed reports to the committee SharePoint.
Lahoset described the programs the treasurer manages for public entities: the Local Government Investment Pool (LGIP) for short‑term liquidity and safety; the Diversified Bond Fund (DBF) for longer horizon bond investments (minimum $250,000 participation); the idle pool, which manages the state27s daily cash and short‑term investments; and the Millennium Permanent Endowment Fund that holds Master Settlement Agreement proceeds for anti‑tobacco and related programs.
Key figures and mechanics: Lahoset said the idle pool earned more than $249 million in interest in FY2024. He described how statutes direct where interest earnings are posted and told the committee staff had placed a fund‑by‑fund interest earnings report on SharePoint. "Any interest that's part of the revenues recorded by the agency as well," Lahoset said, "we have reports that show how much interest a fund earns, what direction it goes and which fund it goes to." Committee members requested that staff supply a report showing which interest earnings flow back through the general fund and which are retained by the receiving fund.
Why it matters: interest earnings on set‑aside cash and continuously appropriated funds materially affect available fund balances and the apparent size of on‑ and off‑budget resources. Several committee members said they want greater transparency about interest flows and about continuously appropriated and off‑budget funds.
Ending: Lahoset said the treasurer27s office report cards and spreadsheets are on SharePoint and staff will follow up with a fund‑level interest report showing where earnings are credited.
