Jimmy Patronis: Florida Made Additional $20 Million on CARES Act Interest

This week, Florida Chief Financial Officer (CFO) Jimmy Patronis announced the Treasury Division has earned an additional $20 million in interest from CARES Act funding, which brings total investment earnings to more than $62 million through September.

The interest goes into the state’s general fund, which is spent at the discernment of the state of Florida. Florida Statute tasks the CFO with the responsibility to fully invest or deposit state funds to realize maximum earnings and benefits.

Patronis weighed in on the additional funds on Tuesday.

“The COVID-19 pandemic has had a major impact on Florida’s businesses, communities and finances. By making smart financial decisions, we have produced $62 million to be used by the governor and Legislature to strengthen our state. By allowing generated interest to remain at the state level, the Trump administration is providing tremendous economic flexibility for Florida as we work to restart our economy,” Patronis said.

In April, Patronis received into the Florida Treasury nearly $5.9 billion in coronavirus relief funds from the federal CARES Act. The CFO invested these funds into the Treasury Investment Pool where the interest can be used to help offset any reductions in general revenue due to the pandemic’s effect on the economy. The Florida Treasury uses pooled investments for all funds not immediately needed for state of Florida business. All funds invested within the State Treasury Pool are apportioned interest on a monthly basis based on their invested balance in the Total Pool. The investments are allocated among eight Treasury investment portfolios/programs. The Treasury’s principal investment management objectives include providing liquidity, preserving principal and providing incremental income.

 

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