Everyone knows that Illinois is in miserable financial distress. But did you know that there's billions untouched in the "State's Portfolio?"
That's the topic of an informative piece by Mike Glennon in Wirepoints today:
What sense is there letting $11.5 to $14 billion of state money sit around indefinitely, unused, invested mostly short term and earning little? The Illinois Treasurer’s holdings are an important part of the state’s overall situation, so the question should have an obvious answer. It doesn’t. In fact, digging into the question exposes a subject so nontransparent that the general public, and probably most legislators, can’t be expected to assess it.
Here’s what we know: As of the end of last month, the Treasurer held $12.2 billion of state money, called the State Portfolio. It’s invested in bank accounts and securities earning on average a little over one-half of one percent per year. That’s aside from other monies held or administered by the Treasurer, including the college savings program and funds owned by municipalities invested on their behalf by the Treasurer. (Including those, the Treasurer’s office manages about $25 billion.)
State Portfolio holdings that large are not temporary or seasonal. Data on the Treasurer’s site go back to January 2014. The balance then was about $12.3 billion, and it has ranged from $11.5 to $14 billion since then.
Why? Read the rest HERE.
