Idaho treasurer candidates have differing state investment mindsets

Two candidates will vie for the position to manage Idaho’s cash flow and investments, and they offer differing views on how to do so. 

Incumbent Republican Treasurer Julie Ellsworth will face Democratic challenger Kevin Jones in the Nov. 3 general election. Jones, although running as a Democrat, believes the position should be nonpartisan and has announced he will unaffiliated the day after the election. 

The treasurer’s office serves as the state’s chief financial officer — which includes overseeing the receipt of state money, accounting for disbursement of funds, investing idle state money, and administering the unclaimed property program, the 529 College Savings Fund, and the Idaho ABLE savings accounts. 

Each of the candidates are focused on the state’s investment strategy, but with different approaches and metrics for success. 

Who are the candidates seeking office for Idaho treasurer? 

Jones, 63, said he is running to improve the state’s investment yields and said his background better suits him to the job. He previously ran Boise-based Harmonic Investment Advisors. He is a longtime institutional portfolio manager and a chartered financial analyst, which is an internationally recognized professional certification for advanced investment management and financial analysis, he said.

“I’m a very logical individual, and I’m also a former college golfer, so I’ve spent my entire life competing, where numbers matter more than how someone dresses, what party they’re in, and so forth,” Jones said. “… You either post the score on the golf course, or you don’t. You either do well at managing investment portfolios, or you don’t.”

Idaho’s 2026 election voter pamphlet is coming to a mailbox near you

Ellsworth, 64, was first elected as state treasurer in 2018 after serving 12 years non-consecutively as an Idaho state representative. She has been a public school teacher, and a mediator and business consultant. She said she wants to run again because her work has helped the state. 

“I think I’m doing a good job, and I can see that it elevates Idahoans,” Ellsworth said. “It’s very uplifting. The main focus of my job is to assure that money is safe in the state of Idaho, that it is collected in a uniform manner. … and then when money is going to be spent but is idle at the time, we invest it. And I love turning money back to Idaho taxpayers.”

How would the candidates manage Idaho investments? 

When the state has funds that aren’t yet ready to be spent, the treasurer’s office can invest the money to try and grow the fund until it’s ready to be spent. The Treasurer Investment Advisory Board reviews policies and performance of funds, and private firms that contract with the state help oversee investments with the treasurer. 

Jones said the state’s portfolios have been underperforming. He highlighted recent reports from the investment advisory board showing state funds, such as the IDLE fund, producing total returns less than a comparable index fund. An index fund tracks performance of a certain index — or group of investments that often have something in common — and tries to mimic it through buying a representative sample of stocks and bonds in that index. 

The state’s IDLE fund is used to balance cash flow and is used to ensure there is adequate money for state appropriation. Money that isn’t being spent right away can be invested “at the best rate possible at the safest level of risk,” according to the treasurer’s website. 

That fund has returned .34% less than a comparable index fund since its inception, according to an Aug. 13 Treasurer’s Investment Advisory Board presentation. Jones argued the professionally managed funds should always outperform the index. 

“The performance of our investment portfolios has been, in my personal opinion, almost the worst I’ve seen in 38 years of managing institutional portfolios,” Jones said. 

He said he managed retirement accounts for the state Public Employees Retirement System of Idaho, known as PERSI; the LA County Employees Retirement Association; and the California power utility Pacific Gas & Electric Gas. He’s also managed stock mutual funds for large companies such as Merrill Lynch and J.P. Morgan. 

Jones said his experience would lend itself well to the job. 

“I’ve been managing investment portfolios my entire life. I love it,” Jones said. “It’s a passion of mine, and I don’t believe that the state of Idaho should have someone who’s unqualified in the position of treasurer.” 

Ellsworth said she became interested in the position after working on state laws regarding investments as a legislator in the late 1990s. She countered her opponent’s claims that the funds were underperforming by noting that state law only permits certain investments, and anything not expressly allowed is prohibited.

“We’re not out to make money,” Ellsworth said. “My first goal is safety … I have my investment division that is investing money that will roll off in time to make the school payment in August. So it’s really an art, and the fact that you can make money because of the timing of your investments is really amazing. So I disagree with his portrayal. He’s not aware of statutes that limit us, and all the funds.”

She noted that a report from the investment advisory board compared Idaho’s distribution yield and found it was comparable or outpaced other states that face similar restrictions. She said there is a governor-appointed adviser that provides quarterly reviews of portfolios and she has a personal adviser to her office to help oversee the funds. 

“I would never say that my knowledge would supplant this mechanism,” Ellsworth said. 

How will the candidates handle challenges with state financial software Luma?  

In 2023, the Idaho Controller’s Office launched Luma, a new financial and business management software, replacing old systems dating back to the late 1980s. The Legislature authorized the creation of the new system in 2018 through House Bill 493. 

The launch created a number of financial reporting errors and challenges, including the delaying interest payments to state agencies in 2024 because the treasurer’s office couldn’t verify fund balances with the software, the Idaho Capital Sun reported at the time. 

League of Women Voters of Idaho announces candidate forums for state’s governor, US Senate races

Ellsworth said her office is still verifying all the numbers from 2023, but has since implemented ways to ensure ongoing statements were verified. 

Luma did not provide a way to verify the accuracy of financial statements between the treasurer’s office, the controller’s office and the bank. She has hired outside auditors to manually perform that verification process.

Ellsworth said she’s been working closely with the Controller Brandon Woolf’s office, and said she feels confident a reconciliation process will be in place by November. 

Jones said he was unconcerned by the challenges with Luma. 

“It does not affect the decision-making process and in managing the portfolios,” he said. “It doesn’t influence the decision-making process as it relates to debt.” 

He said with any hurdle that came up with reporting, he could call the banks where the funds were held. 

Jones says treasurer’s office should be nonpartisan 

Jones said he’s running as a Democrat because he saw it as his best chance at winning the race. He previously filed to run as a Republican for the 2018 election, but withdrew to focus on his health after a heart attack. 

At the time, he thought Ellsworth’s Republican primary opponent, Tom Kealey, was the more qualified person for the job. 

“I saw what had happened back in 2018 when Ms. Ellsworth had beat Mr. Kealey in that closed primary, I realized that there are probably some underpinnings to the Republican Party that I don’t understand that resulted in her being able to beat him,” he said. 

Jones filed to run as a Democrat this election cycle, but said that party affiliation “doesn’t construe anything about the individual.” 

On Nov. 4, he plans to disaffiliate from either party and become an independent. 

“In fact, it may happen at 12:01 (a.m.). I’m so disgusted with all this,” he said. 

Ellsworth noted in a text message that the treasurer position was established in the Idaho Constitution. Under Idaho Law, the statewide constitutional officers are partisan positions.

“I respect that structure and remain focused on carrying out the responsibilities Idaho voters elected me to perform,” Ellsworth said.