Record earnings are great news for Iowa taxpayers
DES MOINES, IA – State Treasurer Michael Fitzgerald announced record earnings for fiscal year 2019 (July 1, 2018 to June 30, 2019). “Iowa earned over $56 million in its investment pool, the largest amount in over a decade,” Fitzgerald said. “Increased interest income reduces the tax burden, and that is great news for Iowa taxpayers.”
Fitzgerald’s office is responsible for investing idle funds in a combined short-term investment pool. This includes such funds as the state’s general fund, the road tax fund and the state’s two reserve funds. “The money we earn each year funds state programs and reduces the need to collect money from other sources,” Fitzgerald stated. “We take great pride in the additional revenue we are able to add to Iowa’s budget every year.” Pooling the funds allows the Treasury to reduce investment cost through efficiency.
The balance of the investment pool for fiscal year 2019 was over $2.7 billion. The funds are invested under a conservative investment policy which emphasizes the safety of the funds, then looks to ensure liquidity to make payments. The pool earned 2.04% on the funds in fiscal year 2019.
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