City of Breese issued the following announcement on Oct. 20.
COMMON SENSE
I am proud to share the news that we just launched a new investment program to help pay down our state’s bill backlog and save Illinois residents as much as $70 million each year.
As many of you know, the state treasurer is the state’s chief investment officer. The dollars we invest come to us through more than 700 separate state funds. Each fund only can be used for a specific purpose. For example, there is a fund for road building, a fund for the state fair, and a fund to clean hazardous underground storage tanks.
Money from each fund is pooled together to make up our $12 billion state investment portfolio. Many investments are overnight so money is available to pay incoming obligations. Other investments do not mature for up to five years. Regardless of duration, our investment approach is cautious and state law limits the types of risk we can assume.
This year, we proposed the Investing in State Receivables Act. This commonsense approach allows the state treasurer’s office to invest in these past-due bills. Rep. David Harris, a Republican from Arlington Heights, called the legislation “one of the most creative and innovative programs to save money that has ever come before the House.”
Currently, late-interest penalties on the bill backlog are as high as 12 percent. In 2017 alone, it is estimated late interest payments exceeded $1 billion. By contrast, we can invest in the bill backlog and charge a more reasonable 3.5 percent. Together, that equals a $70 million savings for Illinois taxpayers.
I believe in transparency. That is why the terms and conditions of the investments are available at our website, www.illinoistreasurer.gov.
It is a challenging time for Illinois families. Our friends and neighbors face many pressures. That is why innovative ideas are needed now more than ever. I am glad Democrats and Republicans agreed with our commonsense approach.
Sincerely,
Michael W. Frerichs
Illinois State Treasurer
Original source can be found here.
Alerts Sign-up