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State treasurer official tells Pojoaque Valley board LGIP offers liquidity and a low‑fee yield
Summary
Anna Murphy of the State Treasurer's Office told the Pojoaque Valley School Board the Local Government Investment Pool (LGIP) holds about $2.4 billion, invests only in treasuries and agency securities, carries a triple‑A rating, and currently yields roughly 3.6%; she said participants under $30 million can redeem within 24 hours with no penalty.
Anna Murphy, a portfolio manager in the New Mexico State Treasurer's Office, presented the Local Government Investment Pool to the Pojoaque Valley School Board on Wednesday and urged the district to consider the pool for short‑term operational cash.
Murphy said the LGIP holds roughly $2.4 billion in combined assets and is managed to prioritize safety and liquidity. “It is effectively being managed like a government money market fund,” she said, adding that the pool is rated by Standard & Poor's and has maintained what she described as a triple‑A rating for nearly two decades. Murphy told the board the pool currently yields about 3.6 percent, which she tied to the level of the federal funds rate.
Board members asked whether other New Mexico school districts participate and whether investing in the LGIP would protect funds from potential legislative "sweeps." Murphy said the pool has about 130 total participants and that school districts represent a significant portion of that number; she said she would follow up with a breakdown by district. On legal protection from sweeps, she declined to offer a legal opinion, saying "that sounds like a question for lawyers more than for me."
Murphy emphasized liquidity rules that apply to participants: those with less than $30 million invested can redeem their full balance within 24 hours; accounts exceeding that amount are asked to provide 48 hours' notice for large withdrawals. “There is no penalty for you to redeem your investment in the LGIP,” she said.
Board members suggested staff follow up to identify any unobligated operational cash that could be moved into the LGIP and asked for additional data on which districts participate and in what amounts. Administration agreed to study the district's unrestricted balances and report back to the board.
