Economic Indicators
This key figure, often measured by the Consumer Price Index (CPI), tracks the average change in prices for goods and services over time.
What is Inflation?
Authorized pursuant to the Florida Interlocal Cooperation Act of 1969, this authorized investment is always permitted for surplus funds, even without a written policy.
What is the Local Government Surplus Funds Trust Fund or intergovernmental investment pool?
This Florida Statute section governs the investment of surplus public funds by local governments, including school districts.
What is 218.415?
This feature describes how easily an investment can be converted to cash without significant loss.
What is liquidity?
This percentage, reported monthly by the U.S. Bureau of Labor Statistics, reflects the portion of the labor force without jobs and can impact state revenues for school funding.
What is Unemployment Rate?
These SEC-registered funds with the highest credit rating are a safe, liquid option for public entities.
What are money market funds?
Local governments must adopt this document to expand beyond the basic authorized investments.
What is a written investment policy or IPS?
This term refers to the date when the principal amount of a bond or security is due to be repaid.
What is maturity?
A monetary measure of the total market value of all the final goods and services produced and rendered in a specific time period by a country or countries.
What is Gross Domestic Product or GDP?
Direct obligations backed by the full faith and credit of the U.S. government, such as T-bills or bonds.
What are U.S. Treasury securities?
The three primary objectives for public fund investments.
What are safety, liquidity, and return?
Assigned by agencies like Moody's or S&P, this grade (e.g., AAA for top quality) influences a bond's interest rate, market price, and eligibility for public fund investments.
What is a credit rating?
This monthly U.S. Labor Department report tracks net job gains or losses across industries, excluding farms, and signals overall employment trends that can affect state tax revenues for education.
What is nonfarm payrolls (or the jobs report)?
High-rated, short-term unsecured debt issued by corporations, allowed under a written policy.
What is commercial paper?
This standard or "rule" requires investments to be made with judgment and care, considering safety and income, not speculation.
What is the Prudent Person Rule?
This strategy, required in investment policies, spreads investments across issuers and types to reduce risk.
What is diversification?
Published by the Conference Board, this national index surveys consumer attitudes on business conditions, employment, and income, influencing spending that drives sales tax funding for schools.
What is the Consumer Confidence Index?
Obligations issued by entities like Fannie Mae or the Federal Home Loan Bank, categorized as federal instrumentalities and allowed for public entities with a written investment policy.
What are Government-Sponsored Enterprise (GSE) securities?
Certified public accountants must check compliance with Statute 218.415 during these annual reviews of local governments.
What are audits?
The risk that the issuer fails to make interest or principal payments, minimized by high credit ratings.
What is credit (or default) risk?