Return to the main page | Previous document | Next document


Program D: Investment Management

Program Authorization on: La. Constitution, Article IV, Section 9; R.S. 36:761(C); R.S. 49:307; R.S. 49:321; R.S. 49:327(A)(B)(d); R.S. 17:3803

PROGRAM DESCRIPTION

The mission of the Investment Management Program (organizationally expressed as the Office of State Depository Control and Investments) is to invest the funds deposited in the State Treasury in a prudent manner, consistent with the cash needs of the state and the directives of the constitution and statutes, and within the guidelines and requirements of various funds under management. This involves:

The goal of the Investment Management Program is to invest monies deposited in the State Treasury in a prudent manner, consistent with the daily cash needs of the state, the directives of the Louisiana Constitution and the state legislature, and within the guidelines and requirements of the various funds under management.

The Investment Management Program maintains several investment portfolios (each with differing characteristics) that, in combination, average $2.85 billion. Additionally, these portfolios are subject to over $12 billion per fiscal year in receipts and disbursement activity.

OBJECTIVES AND PERFORMANCE INDICATORS

Unless otherwise indicated, all objectives are to be accomplished during or by the end of FY 1999-2000. Performance indicators are made up of two parts: name and value. The indicator name describes what is being measured. The indicator value is the numeric value or level achieved within a given measurement period. For budgeting purposes, performance indicator values are shown for the prior fiscal year, the current fiscal year, and alternative funding scenarios (continuation budget level and Executive Budget recommendation level) for the ensuing fiscal year (the fiscal year of the budget document).

 

RESOURCE ALLOCATION FOR THE PROGRAM

SOURCE OF FUNDING

This program is funded with State General Fund, Interagency Transfers, Fees and Self-generated Revenues and Statutory Dedications. Interagency Transfers are derived from various state agencies for their share of the cost in investing funds. Fees and Self-generated Revenues are derived from fees collected for preliminary review and final approval of bond applications; from implementation of the securities lending program, and from the Local Government Investment Pool revenue. Statutory Dedications are derived from the Louisiana Quality Education Support Fund (8 (g)). (Per R.S. 39:32B.(8), see table below for a listing of expenditures out of each Statutory Dedicated Fund.)

ANALYSIS OF RECOMMENDATION

GENERAL FUND

TOTAL

T.O.

DESCRIPTION

 

 

 

 

 

$129,973

$1,242,390

8

 

ACT 19 FISCAL YEAR 1998-1999

 

 

 

 

 

 

 

 

 

BA-7 TRANSACTIONS:

$0

$0

0

 

None

 

 

 

 

 

$129,973

$1,242,390

8

 

EXISTING OPERATING BUDGET November 20, 1998

 

 

 

 

 

$0

$6,944

0

 

Annualization of FY 1998 1999 Classified State Employees Merit Increase

$0

$7,052

0

 

Classified State Employees Merit Increases for FY 1999 2000

$0

($12,293)

0

 

Salary Funding from Other Line Items

$0

$3,000

0

 

Other Adjustments Adjustment for Training for investment portfolio management

$0

$28,000

0

 

Other Adjustments Data Processing Software for Subscription and Access services to the Bloomberg Financial Systems

 

 

 

 

 

$129,973

$1,275,093

8

 

TOTAL RECOMMENDED

 

 

 

 

 

$0

$32,703

0

 

DIFFERENCE (TOTAL RECOMMENDED AND EXISTING OPERATING BUDGET)

The total means of financing for this program is recommended at 102.6% of the existing operating budget. It represents 94.8% of the total request ($1,344,828) for this program. The increase in funding is primarily due to increases provided for operating services relative to a subscription for on-line financial data.

PROFESSIONAL SERVICES.

This program does not have funding for Professional Services for Fiscal Year 1999-2000.

OTHER CHARGES

$79,757

 

Custodial services for the Louisiana Education Quality Trust Fund [8(g)]

$74,800

 

Management access to "live date" on securities and equities market

$705,700

 

Custodial services for the equity investment management program for the 8(g) fund

 

 

 

$860,257

 

TOTAL OTHER CHARGES

 

 

 

 

 

Interagency Transfers:

$400

 

Department of Civil Service

$919

 

Office of Information Services for data processing services

 

 

 

$1,319

 

TOTAL INTERAGENCY TRANSFERS

ACQUISITIONS AND MAJOR REPAIRS

This program does not have funding for Acquisitions and Major Repairs for Fiscal Year 1999-2000.


Return to the main page | Previous document | Next document