SALT LAKE CITY (KUTV) — Utah state treasurer Marlo Oaks said federal Covid money sparked big increases of billions in “reserves” held by school districts–plus even more money in investment fund balances held by universities, cities, and other governments in the state.
The Public Treasurer’s Investment Fund, which Oaks administers and described as akin to a “money market account,” has nearly doubled in the past seven years, up from a total of $18 billion in 2018 to $35 billion now–larger than the annual entire Utah budget.
“I think a lot of it is Covid money, the federal money that came into the state,” Oaks said. “That’s contributed significantly to increases In balances.”
“Did school districts spend the Covid money?” 2News asked Oaks.
“I think it’s an open question that we need to explore,” he replied, adding it’s also a question for all governmental entities. “We’ve seen this (higher account balances) across the board.”
Last week, 2News reported total fund balances for school districts in Utah top $4.5 billion, but the state auditor said the reserves for districts are likely much higher.
Reasons for holding the money may be varied–insurance, capital improvements, maintaining or enhancing bond ratings, and to weather economic downturns.
But billions in reserves seems counter a long-running claim that Utah public education is strapped for cash.
Lawmakers on a public education committee signaled the school reserves may get more scrutiny.
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