Summary of Revenue for Fiscal Year 2014
Revenues earned from Trust land are classified as either permanent or expendable receipts. Revenues derived from the sale of State Trust land and natural products are referred to as permanent receipts which are deposited into the permanent funds and invested in stocks, bonds, and interest-bearing securities by the State Treasurer. The Treasurer distributes money from the funds to the beneficiaries according to a constitutional formula.
Expendable revenue includes lease revenue from Trust land leases and permits, interest from sales contracts, and the Treasurer’s formula distribution. This revenue is distributed directly to the beneficiaries for their use. Proposition 301 (passed by voters in the 2000 election) created a Classroom Site Fund whereby particular sources of funds, including revenue from the fiduciary management of State Trust land, are directed to fund items such as teacher salaries, classroom size reduction, and dropout prevention programs. According to Proposition 301, the first $72.3 million in expendable revenue for common schools can be used to fund the basic State Aid Formula, which funds education. Expendable revenue in excess of $72.3 million is deposited into the Classroom Site Fund.
- The ASLD deposited $103 million into the Permanent Funds in FY 2014.
- In FY 2014 the combined value of the Permanent Funds exceeded $4.5 billion.
- The Permanent Funds consist of revenues earned from the sale of State Trust land and assets such as minerals or other natural products.
- Each beneficiary has its own Permanent Fund.
- The State Treasurer manages the Permanent Funds and invests the funds in stocks, bonds and other interest bearing securities. Distributions from the Permanent Funds to the beneficiaries are based on a constitutional formula.
- In FY 2014 the Treasurer distributed $73,032,624 to the Trust beneficiaries.
- Expendable revenue includes revenue from Trust land leases and permits, interest from sales contracts, and the Treasurer’s Formula Distribution of the Permanent Funds.
- Expendable revenues are distributed directly to the beneficiaries.
- Expendable revenue totaled $140 million in FY 2014.
- Revenue from Trust land leases, permits, and interest earnings from sales financed through the ASLD totaled $66.7 million.
- The Treasurer distributed $73 million to the beneficiaries according to the constitutional Formula.