May 22, 2007

Citing a need for transparency in government, Illinois lawmakers approved legislation drafted by State Treasurer Alexi Giannoulias that requires his office to make investment information available to the public.

The bill, sponsored by State Sen. Don Harmon (D-Oak Park) and State Rep. Brandon Phelps (D-Harrisburg), passed the Illinois House today in a unanimous vote, 115 to 0. It now awaits the governor’s signature.

Under the bill, the Treasurer’s Office will provide monthly investment updates on its website, showing: the amount of money the office is holding; where that money is invested; how much money the state is making on its investments; and how the state’s returns compare to industry standards known as benchmarks.

“I believe taxpayers should be treated like shareholders of a company,” Giannoulias said. “This legislation will allow taxpayers to hold my administration and future administrations accountable for making the best possible investment decisions for the people of Illinois.”

The Treasurer’s Office will also report a detailed listing of the time deposit balances. This will include the name of the financial institution and information about the rate the financial institution is giving the state.

“This legislation shines a light on state investments,” State Sen. Harmon said. “A strong government is a transparent government that can hold up to public scrutiny and provide unfiltered information to better inform the public about how their tax dollars are invested.”

The core function of the State Treasurer’s Office is the investment of public funds. Upon taking office in January, Giannoulias convened an investment policy meeting to establish benchmarks that provide for consistent reporting of investment information.

“With $14 million in the state’s account that the Treasurer’s Office invests, Illinois residents should know how those investments are performing,” State Rep. Phelps said. “The Treasurer’s Office can use this information to make adjustments so the state can earn a higher rate of return on its investments.”

The Treasurer’s Office earned $171 million in interest on state funds and investments in Fiscal Year 2007, up 46 percent from the previous year, according to the Commission on Government Forecasting and Accountability’s April report. In addition, the state’s portfolio outperformed competing indexes in April.

In advance of this legislation, the Treasurer’s Office has posted all required information online.

Find our more information about the state’s portfolio.