​Prudently Managing Utah’s Investments and AAA Credit Rating

Treasurer Oaks administers the $34 billion Public Treasurers’ Investment Fund (PTIF), which provides daily liquidity to state agencies and more than 800 local government entities throughout Utah. He also manages several long-horizon portfolios and statutorily required government escrow accounts.

Accomplishments:

• Treasurer Oaks has strengthened the management of the $1.2 billion long-horizon investment portfolios. These portfolios are now managed in conjunction with an outside investment group that augments internal resources.
• The PTIF has grown to $34 billion from $23 billion when Treasurer Oaks took office in July 2021. Safety of principle is of primary importance to the PTIF. In 2022, to reduce exposure to the financial sector, Treasurer Oaks instructed staff to begin strategically paring back the PTIF’s 85% corporate bond exposure. Today that exposure is closer to 20%. The fund is better positioned to navigate any potential economic uncertainties.
• Under Treasurer Oaks’ leadership, the office is facilitating the sunsetting of the Utah Fund of Funds.
• Treasurer Oaks serves as board chair of the School and Institutional Trust Funds Office (SITFO). As a direct result of the strong performance of the Trust Lands System, public schools will receive a historic $106 million distribution from the Permanent State School Fund in July 2024 – a 5% increase from last year’s distribution of $101 million distribution. This record annual distribution is independent of other tax-funded sources supporting public schools.
• With Treasurer Oaks’ support, voters will consider a Constitutional amendment on the November ballot to increase the maximum distributions from the Permanent State School Fund from 4% to 5%. Increasing the cap to 5% will give SITFO the flexibility needed to meet its fiduciary obligation to balance funding between current and future students. If the 5% cap were in place today, public schools would have received an additional estimated $15 million beyond the scheduled $106 million distribution. *Please note, this Constitutional amendment is NOT related to other proposed amendments dealing with funding for public education.

Treasurer Oaks orchestrates all debt issuance of the state, prepares and disseminates post-issuance market disclosures, publishes an annual Debt Affordability Study, and maintains investor, underwriter, and rating agency relations.

Accomplishments:

• Treasurer Oaks oversees the Utah School Bond Guaranty Program, which provides credit enhancement to voter approved general obligation (GO) bonds issued by school districts. The program provides savings to taxpayers by pledging the full faith and credit of the state to the payment of voter-approved school district GO bonds. This allows qualifying school districts to issue under the state’s top AAA credit rating, resulting in the lowest borrowing rates available.
• Treasurer Oaks chairs and his office staffs the Utah Charter School Finance Authority (UCSFA), which provides municipal market access to Utah charter schools issuing debt. As part of these duties, UCSFA, with support from treasury staff, administers the state’s credit enhancement program to qualifying Utah charter schools, providing significant savings to Utah schools. Since its inception, UCSFA has provided effective financing options to more than
  70 schools, totaling more than $1 billion in financing.
•  In 2022, Treasurer Oaks released Utah’s first-ever, annual Debt Affordability Study. The study is intended to inform the legislature, investors, rating agencies, and all Utahns on the state’s outstanding tax-supported debt obligations, debt practices, and the Treasurer’s perspectives on the prudent use of debt. The study is designed to assist in maintaining Utah’s legacy of conservative debt use, while also being pragmatic about the role of debt in financing capital needs that are critical to Utah’s growing economy.

Treasurer Oaks manages the state’s banking relationships, cash collection, funding of disbursements, and reconciliation of state bank accounts.