Bid Ohio

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What is Bid Ohio?

Bid Ohio – an initiative of the Ohio Treasurer of State – is a competitive "live" auction of interim funds from the Ohio Treasury conducted on a secure Web site developed for the Treasurer of State’s office.
"Interim funds" are state dollars (tax receipts, fee payments, etc.) which have been received by the Treasurer’s office, but which are not needed to meet immediate obligations of state government.
These funds are available to the Treasurer for short-term investment.
On October 5, 1999, Ohio became the first state in the nation to conduct a competitive, Internet auction of interim Treasury funds.

As of July, 2008, a total of $450 million in interim Treasury funds has been earmarked for Bid Ohio.
Bid Ohio auctions occur on the first and third Tuesday of every month, with $50 million in interim funds available for each auction.
Each monthly Bid Ohio auction lasts for exactly 30 minutes starting at 10 AM.
Any eligible state depository bank (a bank that conducts business with the Treasurer’s office) is eligible to register and participate.
Once adequately collateralized, each participating bank may bid for up to $5 million of Treasury funds per auction.
Banks are notified immediately as to whether their bid is "in the money" and can submit improved bids during the auction.
The Treasurer’s office uses the $50 million to purchase six-month certificates of deposit (CD’s) from banks making successful bids on the first Tuesday of the month. The Treasury then uses another $50 million to purchase three-month CD’s from banks making successful bids on the third Tuesday of the month.
"Successful" bids are those offering the greatest rate of return on six-month CD’s.
Funds are awarded from the highest bid to the lowest at the point when the $50 million is exhausted. Like bids are awarded based on time submitted.

Bid Ohio is a truly competitive process. Bid Ohio is a "paperless" process, which enhances the safety, accuracy, and efficiency of Treasury investment operations.
Thanks to Internet technology, Bid Ohio allows more banks to compete for interim Treasury funds, thereby reinvesting Ohio’s money in more Ohio communities.
Bid Ohio generates significantly higher interest earnings for taxpayers than previous processes, netting Ohio an additional $3 million in its first year.

Bid Ohio has won five national awards for innovation, from the Association for Financial Professionals, MuniNet Guide & Review, Council of State Governments-America's Best Innovations, GFOA-Louisville Award for Financial Innovation in Government Finance, and the Council for Excellence in Government-Innovations in American Government
Dozens of other states and large municipalities are studying Bid Ohio, and three, Indiana, South Carolina, and the City of Pittsburgh, have their own versions up and running.