The Public Funds Investment Institute published a brief titled, "Something’​s Up in Texas," which says, "Local government investment pools have flourished in Texas and its local governments have benefitted from the highly competitive marketplace that provides a myriad of options, many at very low cost. But recently the industry has attracted the attention of state legislators who have introduced bills that would alter the landscape, likely to the detriment of Texas localities.... Texas may have the best local government investment pool industry in the nation. Eight statewide programs offer a total of 17 pooled investment options. The programs have assets of around $​140 billion and expense ratios that are as low as four basis points.... And they all operate under a detailed state law that sets accounting and operating standards and promotes transparency." It continues, "Yet the Texas LGIP industry has attracted the attention of state legislators who have introduced bills that would restrict LGIP activities and alter the competitive landscape: One proposal would effectively give the state-​sponsored pool a monopoly and eliminate the ability of local governments to use other programs; A second would require that at least 35% of the investments made by a local government be placed in Texas banks without regard to the effect this might have on local government interest earnings; A third proposal would prohibit an LGIP from entering into a sponsorship agreement with any organization and seems particularly directed at a program sponsored by the Texas Association of School Boards.... The biennial Texas legislative session ends on June 2, so one way or another these proposals will be resolved in short order." Note: Crane Data will be attending TEXPO 2025 in San Antonio, which takes place April 27-​29. We hope to see some of you there!

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