State Land Department Revenue
Revenue earned from Trust land are classified as either permanent or expendable receipts.
Revenue derived from the sale of State Trust land and natural products are referred to as permanent receipts, which are deposited into the Permanent Land Endowment Trust Fund (PLETF) 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 receipts include 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 2000, created a Classroom Site Fund. Through it, 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 exceeding $72.3 million is deposited into the Classroom Site Fund.