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Minutes for HB2161 - Committee on Appropriations
Short Title
State finances; requiring the KPERS board to liquidate the pooled money investment portfolio investment pursuant top K.S.A. 2016 Supp. 75-2263; transferring money to the state general fund and to the pooled money investment portfolio; authorizing the pooled money investment board to invest idle funds available for long term investment.
Minutes Content for Thu, Jan 26, 2017
Chairman Waymaster opened the hearing on HB 2161.
Jill Wolters, Office of the Revisor of Statutes, presented the bill brief (Attachment 1) This bill requires the Kansas Public Employee Retirement System (KPERS) board to liquidate the pooled money investment portfolio investment pursuant to the statutes; transfers money to the State General Fund (SGF) and to the pooled money investment portfolio; authorizing the pooled money investment board (PMIB) to invest idle funds available for long term investment.
Jill Wolters responded to questions from committee members. She responded that adjusting the repayment schedule over the seven year period would require a legislation and could be included in an appropriation bill. Background information on Idle Funds investments was reviewed. It was noted that the PMIB administrative fees.shall not exceed 0.25 percent on moneys in the municipal investment pool and 0.10 percent on moneys in the pooled money investment portfolio.
Shawn Sullivan, Director, Division of Budget, presented testimony as a proponent of the bill (no written testimony was provided). A memo acknowledging the hearing on the bill and summarizing the contents of the fiscal note was distributed to committee members (Attachment 2). He stated that the fiscal note will be submitted to the committee upon completion.The Governor's recommendation would transfer $317 million from the PMIB to the SGF in FY 2017. The investment capital from the Idle Funds in the Treasurer's Unclaimed Property Fund at KPERS would generate approximately $45 million in interest earning for the SGF. The Governor's recommendation is that the loan would be paid with the interest earnings over the next seven years.
Shawn Sullivan responded to questions from committee members. The liquidation total amount is $362 million, and the Legislature would determine the interest rate for the loan repayment. It was noted that this bill allows the Treasure's Unclaimed Property Fund and PMIB more flexibility with investments. The concern was expressed regarding on-time debt issues to address budget shortfalls and the continuance of delayed loan repayments. The Governor's recommendation would reflect a $99.6 million ending balance for FY 2017.
Chairman Waymaster closed the hearing on the bill.
