Tax time is in full swing, and chances are you have already started compiling your year-end tax statements for your home, investments and various expenses. We’ve finished crunching the fiscal year numbers for programs and investments in the Treasury and have compiled our own year-end statement for the state.
Here you will find a quick snapshot of trust fund investments, the state’s unclaimed property program, the START college savings program, and local government investments in LAMP. We’ve also put together updates about the state’s cash flow, debt issuance and bond rating. Please take a minute to look at the performance of the investments and programs that are housed in the Treasury. After all, these are your tax dollars, so it’s important to know how your money is working for you.
Some of Fiscal Year 2012’s financial highlights include:
- Investment portfolios in the General Fund closed out the year with a $5.4 billion balance and $93.9 million in earnings from investment activities.
- State trust funds finished 2012 with earnings of $106 million and rates of return of 6.7 percent (Louisiana Education Quality Trust Fund), 4.5 percent (Millennium Trust Fund) and 5.4 percent (Medicaid Trust Fund).
- Fixed income and equity investments in the START program totaled $405 million this past year with earnings ranging from 2.5 percent to 18.3 percent, depending on the portfolio.
- The Louisiana Asset Management Pool (LAMP) closed out the year with $2 billion in assets, 631 local government participants, and 4,142 accounts.
- Businesses reported a record $74 million in unclaimed property to the state, and the Treasury returned a record $27 million to Louisiana residents.
- Standard & Poor’s, Moody’s Investor Service and Fitch rating agencies maintained the state’s bond rating in FY 2012 of AA, Aa2, and AA, respectively, with a stable outlook.
- The State Bond Commission sold $400 million in general obligation bonds and refinanced $49 million of existing bonds, saving taxpayers $5.2 million.
- The Treasury awarded nearly $185 million in Certificates of Deposits (CDs) to 58 banks statewide through the Treasury’s electronic auction service, BidLouisiana.
- The Treasury’s Social Security Division conducted 162 Medicare-Only referenda at 88 local government agencies in Louisiana, allowing 35,481 government employees the option of paying the Medicare tax.
The Treasury will continue efforts to earn the best rate of return possible on taxpayer dollars, consistent with preservation of capital, and meet our goals of financial strength and durability of the state. In addition, we will continue to work to fulfill our mission of promoting prudent cash management and investment strategies. We will also continue our work to improve the state’s finances, investment performance and bond rating. For more information about our efforts, visit www.LATreasury.com.