Lafayette County Baptist Fund Holds at $20M But No Payout This Year

By Alyssa Schnugg
News editor
alyssa.schnugg@hottytoddy.com

Despite the stock market crash during the first quarter of 2020 due to the COVID-19 crisis, Lafayette County ended the first quarter of 2020 with its $20 million Baptist fund principle investment intact.

However, due to a 2.4 percent drop, the county will not collect its annual payout from the fund this year.

At the start of March, the principle dipped to $19,662,827. By March 31, it increased 1.9 percent to $20,044,357.

The county has received about $500K each year from the fund since its inception in 2012 that has traditionally gone toward repaving roads and fixing potholes; however, when the principle drops below $20 million, the Board of Supervisors cannot take a payout.

During a state of emergency, the board can choose to withdraw 5 percent of the fund, even if it lowers the principle below the original $20 million investment but cannot take out any more payouts until the fund is brought back up to where it was pre-withdraw. However, the Board has no plans at this time to make such a withdraw.

Board President Mike Roberts said there are funds in the county’s general budget to fix and repave roads.

“The payout each year just allowed us to do some extra work,” he said.

Roberts said the county is “blessed” there was not a bigger loss to the fund during the last three months and that the principle $20 million was not greatly reduced.

Roberts said the county has not had to furlough any employees since the county does reply on sales tax for revenue. 

“We’re in pretty good shape,” he said Monday.

A few months ago, the Board directed Green Square investment management firm to reduce the percentage of the fund invested in stocks to no more than 10 percent and invest the other 90 percent in bonds, creating a very low-risk fund.

“Those decisions have served us well in this economic downturn and through the pandemic,” said Green Square founder and CEO Steven Sansom during a quarterly presentation to the Board of Supervisors Monday via Zoom.

Sansom said the economy, now in a recession, will recover but perhaps not as quickly as most would hope.

“The question now is how deep, how bad and how long,” he said. “People were thinking we would have a quick recovery, but that thinking has gone away. Most are forecasting a longer recessionary period.”

Sansom recommended keeping the stock allocation to 10 percent for the next month or so and then meet again to review the market and discuss changes if the Board wants to adjust the allocations.