State Treasurer reports $13.18 million in Q1 revenue; board accepts report

Treasurer Milligan reported to the State Board of Finance that the Treasury’s portfolio produced $13,180,000 in revenue for the first quarter of fiscal 2022, covering July 1 through Sept. 30, 2021. Milligan said the long-term portfolio earned about $12,500,000 in the quarter compared with $5,750,000 for the same period a year earlier, and the short-term portfolio returned roughly $615,000.

"Our total revenue for the Q1 was $13,180,000," Treasurer Milligan said, adding that the office has focused on diversification and conservative, quality purchases to produce steady gains. He warned the board that inflation (which he said had risen more than 5% year over year) and the pace of Federal Reserve tapering were variables the investment team was watching.

Board members had no questions following Milligan’s presentation. A motion to accept the treasurer’s report was moved and seconded and the board voted in favor. The acceptance means staff will continue the current portfolio approach and report performance at the next quarterly meeting.

Background: Milligan presented charts showing historical earnings going back to 2010 and said the total amount earned for the state during his administration now exceeds $442 million. He emphasized that, despite a sluggish fixed-income market, careful diversification and daily market analysis by the investment team contributed to improved results year over year.

What’s next: With the report accepted, the treasury will continue to monitor market conditions and report portfolio performance at the next board meeting.