Treasurer Kennedy Says Funds in Excellent Shape; State Should Leave Them Alone

BATON ROUGE, LA – The market value of state trust funds for healthcare and education has increased by $110 million eight months into the new fiscal year, according to State Treasurer John Kennedy.

We’ve been able to see a significant increase in the market value of our trust funds because of the good investment decisions we’ve made this year, said Treasurer Kennedy. We need to keep our funds on the right track and not mess with them.

Market value measures the worth of the state’s assets or the value of its portfolios. In simpler terms, it refers to the amount of money one would get through the sale of a product on the open market.

Its similar to the value of your home, said Treasurer Kennedy. If you bought a house for $100,000, and put a lot of work into it, it might increase in value to $125,000. But just like you shouldn’t sell your house and go spend the money, we should protect our trust fund balances and invest for the long haul. We don’t need to be raiding our trust funds to get money to operate government.

The market value of the Medicaid Trust Fund has increased from $899 million last fiscal year to $967 million this fiscal year to-date. The state uses interest earnings on the Medicaid Trust as state matching dollars to obtain federal funds for healthcare for the elderly.

The market value of the Millennium Trust Fund has increased from $966 million last fiscal year, after the state distributed $106 million to public school systems statewide, to more than $1 billion this fiscal year to-date. Earnings on this fund benefit healthcare, education and the TOPS scholarship program.

The Louisiana Education Quality Trust Funds market value has increased from $888 million at the close of last fiscal year to $896 million this fiscal year to-date. This is after the Treasury distributed $39.9 million in interest earnings to support various projects of the Board of Regents and Board of Elementary and Secondary Education.

These numbers are a good indicator that well see positive year-end returns on our investments, said Treasurer Kennedy. We don’t need to do anything to jeopardize that. The more money we can make on the earnings on these trust funds, the more dollars there are to fund much-needed state services for our citizens.

Contact:
Sarah Mulhearn
(225) 342-0012