2025 Session Last amended: 2009 session

§ 11A.20 — Investment of State Treasury Funds Not Currently Needed

Plain-Language Summary

This section authorizes the State Board of Investment to invest state treasury funds that are not currently needed to pay the state's bills. Rather than leaving idle cash in a non-interest-bearing account, the board can invest it in short-term securities to earn income for the state. The investments must be safe and liquid so the money is available when needed.

Practical Notes
Earning returns on idle cash is an important source of revenue for the state. The board typically invests in short-term, highly liquid instruments like U.S. Treasury bills and money market funds. This practice ensures the state earns income on its reserves while keeping the money accessible for operating expenses.