Treasurer programs, interest earnings and reporting explained; committee asked for detailed fund-level interest reports

Christopher Lahoset, budget and policy analyst with the Legislative Services Office, briefed the committee on programs managed by the Idaho State Treasurer’s Office and on interest and earnings reporting.

Lahoset described four treasurer programs: the Local Government Investment Pool (LGIP), which allows local governments to pool idle cash for short‑term, low‑risk investments; the Diversified Bond Fund (DBF), a longer‑horizon bond fund for state and public agencies (minimum $250,000 participation); the idle pool, which manages the state’s daily cash flows and invests surplus short term; and the Millennium Permanent Endowment Fund (MPEF), which manages funds from the tobacco Master Settlement Agreement for long‑term public‑health purposes.

Lahoset said the idle pool earned more than $249 million in FY2024 and described the statutes that determine where interest earnings are credited; he told members a SharePoint spreadsheet shows interest earned by fund and agency and committed to post a report that also maps the statutory destination of interest earnings. Representative Tanner asked how to ensure interest or other receipts that should be appropriated are routed through the legislature; Lahoset said interest directions are specified in statute and changes would require legislative action across multiple codes because interest directions vary by fund.

Why it matters: earnings on cash and the statutory routing of interest affect agency budgets and available revenues; some interest goes back to the general fund while other interest is credited to dedicated funds by statute.

Next steps: staff said it would post the fund‑level interest earnings report and work with the treasurer’s office to provide a mapping of statutory directions for interest credits so members can review whether statutory changes are required.