Dan Villa, executive director of the Montana Board of Investments, told the appropriations subcommittee the board is constitutionally charged to manage state assets and can perform centralized services internally at lower cost than the Department of Commerce had billed.

"Our obligations are not political," Villa said, noting the board manages roughly $29.1 billion in assets and has reduced its expense ratio from 0.031% to 0.021% over several years. Villa said eliminating the shared-services charge will save money for pension funds and other state funds that previously paid the department's indirect rate.

Housing programs: Villa discussed the states Homes Act funding and Board of Investmentswork to deploy linked-deposit loans that reduce developers' construction carrying costs. He said $103 million of the initial allocation has been committed through the biennium and the board continues to accept applications; a new application window opens June 10. He described a project in Deer Lodge: the board is building the Pindler Meadows subdivision, with 28 units funded so far to house local employees with a five-year lease-to-purchase model.

Why it matters: Villa argued the board's decision package to stop paying the department for centralized services will reduce costs charged back to beneficiaries and free more money for investments such as housing programs. Lawmakers sought clarification on governance, audits and how the board handled programs without adding staff.

Ending: Villa said the board has not added staff for those housing efforts and uses a model where private lenders underwrite loans before the board participates; he offered links and regular board reports for performance and portfolio detail.