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State treasurer's office outlines LGIP, diversified bond fund, idle pool and Millennium endowment; idle pool earned $249M in FY2024
Summary
Legislative staff described four investment pools managed by the State Treasurer and said the treasury's idle cash pool earned over $249 million in fiscal year 2024.
Christopher Lahoset, budget and policy analyst at the Legislative Services Office, presented an overview of the investment and cash-management programs the Idaho State Treasurer manages and how interest earnings are reported.
Lahoset described the treasurer's four main programs: the Local Government Investment Pool (LGIP) for local governments, the Diversified Bond Fund (DBF) for longer-term public agency investments (minimum $250,000 initial investment; annual fee 0.017%), the idle pool (the state's daily cash-management pool), and the Millennium Permanent Endowment Fund (the MPEF, funded from the tobacco Master Settlement Agreement) for long-term public-health spending.
The nut graf: the treasurer's office manages liquidity and long-term funds that earn interest for specific funds or programs; the direction of interest earnings depends on statute and fund rules, and the treasurer's reports show interest earned by fund and agency.
Key figures and process notes: Lahoset told the committee the idle pool earned more than $249 million in fiscal year 2024. He told members that whether interest earnings flow back to the general fund or remain with a dedicated fund is determined by statute for each fund; he said LSO staff posted a SharePoint report summarizing interest earnings by fund and agency and offered to post a follow-up spreadsheet that shows which funds receive interest and where it flows. Committee members asked staff to provide the detailed report showing interest receipts and the statutory direction of those receipts.
Risk and follow-up: committee members asked whether interest on set-aside balances offsets borrowing (tax anticipatory notes) and where interest appears in the reconciliation; staff said the treasurer and LSO can provide more detailed offset schedules and that several statutes will determine how interest is recorded and where it accrues.
Ending: Lahoset closed by offering to post the fund-by-fund interest report and to return with additional detail requested by members.
