The Local Government Investment Pool
With all of the controversy surrounding the proposal to move the Local Government Investment Pool (LGIP) out of the Treasurer’s Office and over to the Department of Administration, I thought that I should explain how LGIP works, as well as some of the advantages that the pool affords our investors.
The LGIP was created in 1975 to give local governments the opportunity to combine their idle cash to make short-term investments equal to those afforded to state government or large local governments. The LGIP has been designed to consistently maintain the integrity of local funds within a diversified and safe portfolio, provide liquidity, and offer rates of return that are competitive with comparable investments.
The LGIP has nearly 1300 investors, including counties, cities, towns, villages, library systems, and sanitary districts. The pool has a daily average balance of over 3.1 billion dollars, and earns nearly ½ a million dollars a month in interest thanks to the investment strategy designed and implemented by SWIB, the State of Wisconsin Investment Board.
In addition to the advantages detailed above, the LGIP has a reputation for responsive service, of which I am very proud. As an elected official, I have a direct responsibility to ensure that investors in the pool are happy with their level of service. Last week, I had the opportunity to meet with members of the Wisconsin County Treasurer’s Association, who expressed concern for the pool’s future should it be put under the oversight of a less responsive department. I share their concern for the future, but in the meantime, I can guarantee that the LGIP will continue to serve local governments in a responsible and efficient manner.