SPRINGFIELD, Ill. (WAND) - The Illinois State Treasurer’s Office generated $1.45 billion in investment earnings from the state’s portfolio during Fiscal Year 2026, State Treasurer Michael Frerichs announced.
Frerichs, who serves as the state’s Chief Investment and Banking Officer, emphasized that these interest earnings directly benefit taxpayers.
“Every dollar we earn in interest for the people of Illinois is a dollar that lawmakers don’t have to raise in taxes or cut in services,” Frerichs said in a statement, citing ongoing economic pressure from inflation and high housing costs.
Additionally, the Treasurer’s Office generated nearly $759 million in gross investment earnings for local municipalities, school districts, and counties participating in the "Illinois Funds"—a AAA-rated local government investment pool. Frerichs noted that helping local governments secure higher returns helps ease the property tax burden on homeowners.
State law prohibits the Treasurer’s Office from directly investing the state’s portfolio in the stock market. Under Frerichs, the office has instead focused investments on secure local government bonds and prime money market funds, prioritizing security and liquidity.
The office released these figures to clarify its gross earnings, correcting a lower estimate recently published in a report by the Commission on Government Forecasting and Accountability. For July—the first month of Fiscal Year 2027—the office reported gross earnings of $122.7 million.
A transition with the state’s custodian bank caused a temporary delay in recording and reporting interest for both fiscal years, but net earnings are being posted to the Illinois Comptroller’s Office as reconciliations are completed.
Residents can monitor the state's investment metrics on the transparency website, iltreasurervault.com.
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