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State treasurer overview: pools and funds that manage idle cash, plus interest reporting for JFAC
Summary
Legislative analysts summarized the Idaho State Treasurer programs — Local Government Investment Pool, Diversified Bond Fund, Idle Pool, and Millennium Permanent Endowment Fund — and said interest earned by various funds is reported; staff posted a fund‑by‑fund interest report on the JFAC SharePoint.
Christopher Lahoset, a budget and policy analyst with the Legislative Services Office, provided a summary of the investment programs managed by the Idaho State Treasurer’s Office and told the Joint Finance‑Appropriations Committee where members can find fund earnings reports.
Lahoset described four principal programs: the Local Government Investment Pool (LGIP), intended to give cities, counties and special districts a safe, short‑term investment option; the Diversified Bond Fund (DBF), a longer‑term bond portfolio for state and public agencies with a three‑to‑five‑year horizon; the Idle Pool, which manages the state’s daily cash flow and invests short‑term surpluses; and the Millennium Permanent Endowment Fund (MPEF), the long‑term vehicle for master settlement (tobacco) funds.
He said the Idle Pool earned more than $249 million in interest in fiscal 2024. Lahoset noted that the destination for interest earnings depends on statute for each fund — some interest accrues back to the fund that earned it, while other interest is statutorily directed to the general fund or a specified recipient. Representative Tanner asked whether a single legislative change could redirect interest earnings; Lahoset said the direction of interest receipts is set in many separate code provisions and any large‑scale change would require edits across multiple statutes.
Lahoset told members that staff have posted a fund‑by‑fund interest earnings report to the JFAC SharePoint and offered to add an explicit mapping that shows where interest proceeds are directed by statute. He also noted the treasurer’s DBF charges a modest annual fee (0.017%) deducted prior to distribution.
Why it matters: interest earnings on state and dedicated funds can materially affect available cash and the timing of obligations. Committee members asked for follow‑up materials and Lahoset and Legislative Services Office staff said they would post additional spreadsheets showing interest earned by fund and the statutory destination for those earnings.
