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Geary County finance director urges commissioners to oppose bill that could lower local investment yields
Summary
Tammy Robinson, Geary County finance director and past Kansas GFOA president, briefed commissioners on House Bill 2152, which would change the state—s reference rate for municipal investments and could reduce interest revenue for local governments; she said she submitted a citizen letter opposing the bill.
Tammy Robinson, Geary County finance director and past president of the Kansas Government Finance Officers Association, told commissioners the county faces a potential reduction in investment revenue if the Legislature adopts House Bill 2152, which would replace the U.S. Treasury rate used as an investment benchmark with a state-based KNIP (Kansas Municipal Investment Pool) rate.
Robinson said the U.S. Treasury rate is a nationwide standard derived from broader financial markets, while the KNIP rate is limited to Kansas and historically lower. "The KNIP rate is historically significantly lower than the T-bill rate," Robinson said, and added that replacing the national benchmark could eliminate market competition and create conflicts of interest where some board members are bankers.
Robinson said the change could reduce interest income for local governments and noted that, for governments with large balances, even a small difference can mean substantial revenue loss. She said members of her Kansas GFOA board drafted and sent a letter opposing the bill and that she also submitted a letter in her personal capacity because the county had not held a meeting to authorize an official position.
Commissioners discussed whether to individually contact legislators on the committee considering the bill. One commissioner urged colleagues to send emails to the committee members, saying constituent contacts can make a difference. Robinson offered to share the contact list she used for her timely submission.
Robinson said she had to submit material by noon the prior Friday and emphasized the need for commissioners to monitor the bill. She also told commissioners that some statewide groups, including the League of Kansas Municipalities, appear to be in favor of the change, which she found concerning.
No formal county position or vote on the bill was recorded in the transcript; Robinson characterized her letter to the Legislature as a citizen submission rather than an official county action.
