The Lee County School District held a workshop on December 10, 2024, focusing on the current economic landscape and its implications for the district's investment program. The meeting featured a detailed economic update, highlighting key indicators such as GDP growth, inflation, and employment trends.

The economic update revealed that the Gross Domestic Product (GDP) grew by 2.8% in the third quarter of 2024, surpassing expectations. This growth follows a 3% increase in the second quarter, indicating a stronger-than-anticipated economic performance throughout the year. Despite concerns about a potential recession, consumer spending has remained resilient, contributing significantly to economic growth.

Inflation, a persistent issue, has decreased from a peak of over 9% in mid-2022 to 2.6% in October 2024. However, prices continue to rise, particularly in housing, which poses challenges for the Federal Reserve's efforts to stabilize the economy. The Fed's interest rate adjustments, which peaked at 5.5% in September, have begun to decrease, potentially impacting future interest earnings for the district.

The workshop also addressed the district's investment strategy, emphasizing a diverse portfolio that prioritizes safety and liquidity. The district's investment program has benefited from higher interest rates, earning over $58 million in interest for the fiscal year ending 2024, a significant increase from just $2.9 million in 2022. The investment strategy includes a mix of local government investment pools and longer-term portfolios, designed to protect against fluctuations in interest rates.

In conclusion, the workshop underscored the importance of adapting investment strategies to the evolving economic environment while ensuring compliance with state regulations. The district aims to maintain a robust financial position amid ongoing economic challenges.