Gov. Little to leverage COVID-19 federal relief funds for Idaho cash flow management
by CBS2 News Staff
Idaho Capitol. (Getty Images)
BOISE, Idaho (CBS2) — For first time in 38 years, the Idaho state government won’t borrow money to support cash flow.
Governor Little announced Thursday his approval for a recommendation from his Coronavirus Financial Advisory Committee to leverage federal relief funds for cash management.
“This prudent approach is a huge win for Idaho taxpayers. It saves General Fund dollars with respect to cash flow management. It also leverages the CARES Act dollars and puts them to work for Idahoans while still making these funds readily available to Idaho small businesses as this COVID-19 situation continues to unfold,” State Treasurer Julie Ellsworth said.
Idaho has allocated only $450 million to date, out of $1.25 billion directed to the State of Idaho from the federal government.
For the first time since 1982, the Idaho State Treasurer will not issue a State of Idaho Tax Anticipation Note to meet the anticipated cash flow requirements due to the time lag between when the state revenue is received and when state expenses are incurred.
Little's office said over the past five years, $15 million has been paid in interest to a national bank due to TANs.
The governor is looking to save tax payer dollars by not issuing the TAN.
“This move is about good government and prudent management of taxpayer dollars. Given the uncertain economic times, we must minimize state borrowing and limit the amount of General Fund that is committed to interest payments on loans,” Governor Little said.