Legislation sponsored by State Senator Donald DeWitte (R-St. Charles) that provides units of government with greater opportunities to obtain more favorable returns on invested reserve funds has been signed into law. The new provisions apply to all units of government, from the State of Illinois, down to counties, municipalities, townships, and smaller local units such as schools, park districts, and libraries.
Senate Bill 273, signed by Gov. Pritzker on Friday, provides units of government with a wider variety of investment tools for reserve funds. The legislation was negotiated between the Illinois Association of Park Districts and the Illinois Treasurer’s Office.
“This legislation gives those who oversee units of government greater flexibility when they invest public funds,” said Sen. DeWitte. “I want to thank Treasurer Frerichs and his staff for their assistance in helping craft language that ensures governmental units have the widest level of choices possible for their investments, while also protecting taxpayers for overly aggressive and risky investments.”
Specifically, through SB 273, public agencies can invest up to 1/3 of their reserve funds in specific corporate investments and an additional 1/3 in other corporate investments that meet prescribed parameters.
“This is one small way that we can help units of government grow their revenues internally without having to go to taxpayers,” added Sen. DeWitte.
SB 273 received unanimous approval in the Senate and House, and its provisions take effect immediately.