Great news to share with Iowa taxpayers – we are breaking investment records. We earned over $56 million in our investment pool for fiscal year 2019 (July 1, 2018 through June 30, 2019), the largest amount in over a decade! The increased interest income reduces the tax burden for Iowans.
My office is responsible for investing idle funds in a combined short-term investment pool. Pooling the funds allows the Treasury to reduce investment cost through efficiency. 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 reduce the need to collect money from other sources. We take great pride in the additional revenue we are able to add to Iowa’s budget every year.
The balance of the investment pool for fiscal year 2019 was over $2.7 billion. The funds are invested under a conservative investment policy that 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.