Fiscal Note - SJR 018 - Investment of State Funds
L.R. NO. 1695-01
BILL NO. SJR 18
SUBJECT: Treasurer, State
TYPE: Original
DATE: March 20, 1997
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
General Revenue ($95,300)
All State Funds* $7,000,000 to
$10,000,000
Total Estimated
Net Effect on All $7,000,000 to
State Funds $0 ($95,300) $10,000,000
*Includes federal funds invested by the State Treasurers
ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
Total Estimated
Net Effect on All
Federal Funds $0 $0 $0
ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
Local Government $0 $0 Unknown
FISCAL ANALYSIS
ASSUMPTION
Officials of the State Treasurer stated that the proposal would not cause
requests for additional resources. They also stated that, if financial
markets continue behaving as they have in recent years, the state could
receive $7,000,000 to $10,000,000 per year in additional earnings on
investments.
Some political subdivision investments are tied by law to investments allowed
the State Treasurer. Those subdivisions could benefit from these proposals.
Advertisement costs for the proposal would be $3,990 per newspaper column
inch for three publications of the text of the proposal, the introduction,
title, fiscal note summary, and affidavit. The proposal would be on the
ballot for the November 1998 general election.
FISCAL IMPACT - State Government FY 1998 FY 1999 FY 2000
GENERAL REVENUE FUND
Cost-Secretary of State
Newspaper Advertisements ($95,300)
ALL STATE FUNDS
Income - Increased Investment Earnings $7,000,000
to
$10,000,000
NET EFFECT TO STATE FUNDS ($95,300) $7,000,000
TO
$10,000,000
FISCAL IMPACT - Local Government FY 1998 FY 1999 FY 2000
POLITICAL SUBDIVISIONS
Income - Increased Investment Earnings $0 $0 Unknown
FISCAL IMPACT - Small Business
No direct fiscal impact to small businesses would be expected as a result of
this proposal.
DESCRIPTION
This proposal would add banker's acceptances and commercial paper to the list
of allowable investment vehicles of the State Treasurer. It would also allow
the Treasurer to invest in United States government investment instruments
with up to five year maturities. Currently the maturity limit is three years.
The Treasurer would prepare, maintain and adhere to a written investment
policy which would include an asset allocation plan setting out the amount of
state money which would be invested in each investment category authorized.
This legislation is not federally mandated, would not duplicate any other
program, would not require additional capital improvements or rental space,
and could affect total state revenue.
SOURCES OF INFORMATION
Secretary of State
Treasurer
This Fiscal Note is not an official copy and should not be quoted or cited.