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Task force endorses study and limited pilot on public deposits, raises oversight and measurement questions
Summary
The task force recommended an authorized, data-driven pilot on public deposits and local lending, with staff noting the cap was increased in the draft from $150 million to $300 million; members debated independent evaluation, who should oversee reporting, and how to measure whether deposits generate new Utah loans.
Staff presented a draft recommendation to authorize a limited, data-driven pilot that would deploy public deposits into local-lending channels to test whether new deposits produce new Utah loans. The draft increased the pilot cap to $300,000,000 from an earlier $150,000,000 figure after consultations with financial institutions: "We think that 300,000,000 is a more appropriate cap on that," staff said during the meeting.
Members pressed on two measurement questions: first, how to verify that deposited funds become Utah loans (regulator call-report data and ratio analysis were suggested), and second, whether a separate econometric analysis should be funded to measure broader economic impacts and compare them to foregone yield. Several members recommended an independent third-party evaluator and an appropriation to support evaluation capacity.
