Press Release: State Treasurer Ellsworth Saves Millions For Idaho Taxpayers – Updates 1982 Process for Tax Anticipation Borrowing
By Press Release • May 18, 2023The following press release was sent out by the office of State Treasurer Julie Ellsworth. Press releases do not necessarily reflect the views and opinions of those at the Idaho Dispatch.
Boise, Idaho – State Treasurer Julie Ellsworth will save Idaho Taxpayers millions each year with her transparent implementation and update to a 1982 cash flow management process.
Since 1982, the state has used Tax Anticipation Notes to bridge the gap between when expenses are due and when money is received.
For three of the past four years, Treasurer Ellsworth has not pursued a tax anticipation note but instead has borrowed internally which has saved taxpayer dollars.
“Taxpayers’ work hard for what they earn and, I am committed to keeping as much of their money in their pocket as possible. By borrowing internally and maintaining our AAA credit rating, we can save money.” said Treasurer Ellsworth.
After working with the State’s Financial Advisor and the Division of Financial Management, Treasurer Ellsworth is formalizing an improved transparent process for cashflow management. The process will set the default to benefit Idaho taxpayers by borrowing internally to meet gaps in cashflow management instead of seeking a Tax Anticipation Note on the market.
She has also consulted with the other members of the Credit Rating Enhancement Committee whose work she credits with helping Idaho achieve its AAA credit rating.
“In implementing this policy, I have appreciated the Co-Chairs of the Joint Finance-Appropriations Committee, Senator Grow and Representative Horman, who have assisted in gauging the timing of legislative appropriations. They share my goal of ensuring we are all committed to being good stewards of the taxpayers’ money,” Treasurer Julie Ellsworth said.
Transparent Memorandum here.
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Tags: C. Scott Grow, Idaho Legislature, Idaho taxes, JFAC, Joint Finance Appropriations Committee, Julie Ellsworth, State taxes, State Treasurer, Tax Anticipation Notes, Wendy Horman
Sounds like “borrowing internally” is drawing on rainy day or other funds currently in place. I would call this in-house banking. Maybe it’s time that the state consider establishing a state bank for exactly this type of financial management. A state bank could be used to finance many state infrastructure projects as well as low interest loans to locals for business loans and maybe even mortgage loans. The overall goal being to minimize the federal government involvement is our great state. As well as limiting or eliminating the big bank influence too. Our state would then benefit from not paying Wall street types for our bonding fees. (i.e. money flowing out of state)
Hurrah to Julie Ellsworth for moving on this issue. I knew I voted for the right person for this job. Thank you Treasurer Ellsworth for a job well done.