Under Public Act 100-1107, initiated by Treasurer Frerichs and signed into law in August 2018, the Illinois State Treasurer can invest up to $2 billion in State Comptroller-issued debt at a reduced, market-based rate. This enables the Treasurer's Office to:
- Help the State of Illinois offset significant late payment penalties;
- Generate enhanced investment returns for the State; and
- Assist the Illinois Comptroller in paying vendors on a timely basis.
By offsetting payment penalties required under the State Prompt Payment Act, the Treasurer's investment program is expected to save Illinois residents up to $200 million each year when fully funded.
Currently, late-interest penalties on the bill backlog are as high as 12%. Under the new program, the Treasurer's Office can purchase State debt at a more reasonable, market-based rate, thereby helping pay off the bill backlog and saving hundreds of millions for Illinois taxpayers over a five-year period.
Rep. David Harris, a Republican from Arlington Heights, called this “one of the most creative and innovative programs to save money that has ever come before the House.”
Interested in learning more?
Click below for intergovernmental agreements between the Illinois Treasurer and Illinois Comptroller:
- Intergovernmental Agreement for Permitted Investments
- First Intergovernmental Investment Agreement
- Second Intergovernmental Investment Agreement
- Third Intergovernmental Investment Agreement
- Fourth Intergovernmental Investment Agreement
- Fifth Intergovernmental Investment Agreement
- Sixth Intergovernmental Investment Agreement
- Seventh Intergovernmental Investment Agreement