August 2024 Group Watch: Interest Rates Fuel General Fund & ETF Growth
Interests on state deposits continue to fuel the state’s General Fund revenue increases, though that growth is slowing and a possible interest rate cut looms. Ten months into the fiscal year, the General Fund revenues are up 7.6 percent to $2.7 billion. Most of that growth is because of interest earnings on money in savings accounts, including yet-to-be-spent federal COVID-19 money. State budget leaders have warned that decade-high interest rates will eventually drop, and those COVID-19 funds will be spent in the next two years. In the Education Trust Fund, which supports K-12 and higher education, receipts were up 1.49 percent in July, compared to July 2023, and up 1.66% for the year to $8.4 billion.
