MCPS clarifies operating‑fund investment policy; staff emphasize short-term liquidity and report $5–7 million annual interest revenue

The Montgomery County Public Schools Policy Management Committee on May 15 moved revisions to policy DIG (Operating Fund Investments) to the full Board for tentative action, subject to review by the Fiscal Management Committee.

Staff said the draft clarifies that DIG applies only to operating funds — county and state operating revenue used for current obligations — and does not govern pension or long‑term investments. The policy adds language that MCPS makes short-term investments (terms of less than one year) and maintains daily liquidity to meet cash-flow needs.

During the presentation, staff noted the district has realized roughly $5 million to $7 million in interest revenue annually over recent years from the operating-fund investments. The draft also incorporates state objectives that emphasize liquidity and the prudent preservation of capital.

A board member suggested adding language that investment activities should align with MCPS core principles and values; staff said they would consider that suggestion as they refine the draft. Staff recommended moving the policy to the Fiscal Management Committee for review before the full Board takes tentative action in the fall.

Motion and vote: Committee moved the DIG draft to the full Board for tentative action upon condition of Fiscal Management Committee review; the motion passed unanimously.