Treasurer: State Making More Money Than Usual
UPDATED 08/02/11 6:29 a.m.
SPRINGFIELD, Ill. (CBS) -- The state is making more money than usual, though not enough to fill the budget gap.
As WBBM Newsradio 780's Dave Marsett reports, Illinois State Treasurer Dan Rutherford says rising interest rates are helping the state earn more than expected in investments.
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Rutherford says the state earned $22,000 in interest on Monday alone, which is more, he says, than typical for such a trading day.
"We actually received more interest that had been typical the week or two before," he told WBBM Newsradio's Alex Degman. "Part of this was the fact, I think, because of the concern over what would happen."
Rutherford says interest rates have been going up as uncertainty continues to swirl around debt negotiations. He says Monday's interest rate sat at 27 basis points, or three tenths of 1 percent interest.
Ordinarily, it's a small percentage of one basis point.
Rutherford says he will place several billion dollars in investments into non-interest bearing, FDIC-insured accounts should the market become volatile. He equates that to putting cash under a mattress.
His staff had about $3 billion that was liquid and available for investment Monday - including $1 billion from the state's portfolio.
Rutherford says interest rates have been increasing since early last week amid concerns about the debt-ceiling debate in Washington.
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