State Treasurer Kate Marshall announced Monday that the State of Nevada will be investing $2 million in a business that's headquartered in Reno.
This is the first time the state has made an investment like this, in any private company within Nevada.
The $2 million comes from the Permanent School Fund, a land-grant fund that was established in 1860. The fund's roughly $320 million is protected from spending by the state constitution, but it can be invested. All the money made on the investments is sent straight to the education budget.
Marshall said this investment, in a company called Miller-Heiman, will help the school budget grow in the long-term.
"As everyone knows, a dollar today is worth less than it was worth five years ago," Marshall said, "and so what you want to do is diversify your investments and grow your returns."
Currently the Permanent School Fund is making about a two percent return on its investments, which Marshall said is too low. She said the investment in Miller-Heiman will return more than two percent, and help the business grow locally, creating more jobs.
Miller-Heiman is a consulting firm that helps other businesses increase their sales. Marshall said it was an easy choice for this investment.
"I think if you look at the finances, that will tell you where to put your money," Marshall said. "Miller-Heiman looked like a very good investment for us."
Marshall pointed out that there are no taxpayer dollars in the Permanent School Fund. She said investments like these are very common in other states, although this is the first time for Nevada.
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