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Treasurer Fiona Ma reminds counties, cities, and special districts that they can invest their PG&E settlement revenues

State Treasurer Fiona reminds those local governments receiving PG&E settlement funds that they can invest these monies through a special program run by the State Treasurer’s Office special program – the Local Agency Investment Fund (LAIF).

LAIF invests local government revenues for them. This fund is professionally managed and requires no extra money from taxpayers.

“We want to do our part to assist local governments devastated by the various fires caused by PG&E’s actions to recover,” said Treasurer Ma. “These special LAIF accounts gives them the chance to invest critical dollars in a fund that earns competitive yields, but also is safe and liquid.”

LAIF is a voluntary program created by statute. It began in 1977 as an investment alternative for California’s local governments and special districts and it continues today under Treasurer Ma, who directed the creation of special LAIF accounts to receive wildfire settlement funds several months ago in anticipation that wildfire funds would accrue to local governments from the PG&E Bankruptcy.

Last month the federal Bankruptcy Court confirmed PG&E’s reorganization plan. Part of that plan was a $1 billion allocation to local governments for costs that they incurred in addressing wildfires from 2015, 2017, and 2018. PGE has paid monies into the settlement funds and local governments are receiving them. These accounts are not subject to the ordinary rules that apply to deposits and withdrawals into LAIF. See: https://www.treasurer.ca.gov/pmia-laif/laif/accounts.asp.

To date LAIF has received more than $400 million for investment from the PG&E bankruptcy. In addition, the Treasurer’s office is in the process of examining the expansion of this program for those localities that receive settlement funds on other fires from other utilities.

This article was released by the California State Treasurer’s Office.