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What are treasury services

what are treasury services

The Investments Division is responsible for investing the monies deposited in the State Treasury to earn a reasonable rate of return while maintaining safety of principal and liquidity to meet the state’s cash flow needs. The Investments Division manages over $8.5 billion in investment securities.

As part of the cash management program of the State of Louisiana, the Investments Division maintains several investment portfolios, collectively known as the General Fund, each with differing characteristics, which in combination, average over $5.5 billion. Additionally, these portfolios are subject to over $25 billion per fiscal year in receipts and disbursements activity.

The Investments Division also manages over $3 billion in securities contained in State trust funds. These trust funds include the Louisiana Education Quality Trust Fund (LEQTF), the Millennium Trust Fund, the Medicaid Trust Fund for the Elderly, and the Transportation Trust Fund.

The Louisiana Education Quality Trust Fund (LEQTF). The LEQTF was created in 1986 by an Act of the Louisiana Legislature and an amendment to the Louisiana Constitution passed by the citizens of Louisiana. Investment income generated by the fund is dedicated to the sole purpose of providing educational enrichment programs. The acts established as beneficiaries, the Board of Elementary and Secondary Education (BESE) and the Board of Regents (Regents). In addition, the acts also provided for the investment of these funds by the State Treasurer. The LEQTF was established with roughly $540 million; has grown to more than $1.2 billion; and has paid out more than $1 billion in investment earnings to Regents and BESE.

The Millennium Trust Fund. The Millennium Trust Fund was created by Act 1295 of the Legislative Regular Session of 1999 and established in the State Treasury as a special permanent trust fund. Act 1295 further created three special funds within the Millennium Trust. These funds are the Health Excellence Fund, the Education Excellence Fund, and the TOPS Fund. The funding for the Millennium Trust comes from the tobacco settlement proceeds as prescribed by the Master Settlement Agreement executed on November 23, 1998. It has grown to a balance of about $1.4 billion.

The Medicaid Trust Fund for the Elderly. The Medicaid Trust Fund for the Elderly was created as a permanent trust fund in the State Treasury by Act 143 of the 2000 First Extraordinary Legislative Session. The earnings and the principal in the fund are subject to appropriation as specifically provided for in the Act. The balance of the fund is about $410 million.

The Transportation Trust Fund. The Transportation Trust Fund was established in 1990, as a special permanent trust fund in the state treasury by a Legislative act and the passage of an amendment to the Louisiana Constitution by the citizens of the State. The act allows the Louisiana State Bond Commission to issue and sell bonds, notes, or other obligations secured by gasoline and fuels tax revenues. The monies in the trust fund are used for construction and maintenance of state and federal roads and bridges, the Statewide Flood-Control Program, ports, airports, transit, state police traffic control projects, and the Parish Transportation Fund.

Category: Bank

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