Treasurer Fitzgerald earns more than $51 million for Iowa in FY20
July 21, 2020
State Treasurer Michael Fitzgerald earned $51.6 million in interest on the State of Iowa’s short term investment pool in the fiscal year that ended June 30th. Fiscal year 2020 (FY20), July 1, 2019 through June 30, 2020, marks the second highest earnings for Iowa in over a decade. The FY20 rate of return was 1.65%.
“I take great pride in being able to report significant earnings once again for Iowa, even amidst the volatile market and budget impacts of the COVID-19 pandemic” said Fitzgerald. “In the midst of these unpredictable times, we continue our mission of keeping Iowa’s money safe. The money we earn each year funds State of Iowa programs and reduces the need to collect money from other sources.”
As the State’s banker, Treasurer Fitzgerald invests the funds of State agencies together in one short-term investment pool. For FY20, the pool averaged over $3.3 billion in funds. The Treasurer’s investment policy for the pool prioritizes safety first, then liquidity to ensure the State can make payments and finally, interest earned. The pool includes the State’s general fund, the road use tax fund, the State’s two reserve funds and a number of smaller State funds.