Permanent School Fund

Texas Permanent School Fund
Sovereign wealth fund
Industry Institutional investor
Genre Public Lands, Mineral Rights, Land Use Rights
Founded 1854
Founder By Act of Legislature
Headquarters Austin, Texas, United States
Total assets US$ 28.8 billion (August 2012)[1]
Owner State of Texas
Website www.tea.state.tx.us

The Texas Permanent School Fund is a sovereign wealth fund which serves to invest its assets to provide a return for funding of public primary and secondary education in the State of Texas.[2] As of the end of fiscal 2012 (August 31), the Permanent School Fund has a balance in excess of $28 billion.[1] The fund is distinct from the Permanent University Fund, which funds most institutions in the University of Texas System and the Texas A&M University System, but no other public universities or schools in the state.

The Permanent School Fund was established with $2,000,000 appropriation from the Texas Legislature in 1854.[2] In 1876 following Reconstruction, half of the remaining public lands owned by the State were contributed to the Permanent School Fund. The lands are managed for the fund by the Texas General Land Office, and all revenues from the land are deposited in the Fund. Usage of Fund assets is limited to interest income only, which protects the principal investment for future use and ensures that the Fund cannot be exhausted through withdrawals.[3]

In 1953, the United States Congress passed the Submerged Lands Act which returned to the States the navigable territorial waters that had been historically the property of the States. Because Texas's historical territorial waters originated with its nationhood, the US Supreme Court ruled in 1960 that Texas was in the unique position of owning territory out to three leagues (10.35 miles) from its coastline. These lands were also contributed to the Permanent School Fund, which have contributed significantly to its assets.[2]

External links

References

  1. ↑ 1.0 1.1 "Texas Permanent School Fund: Annual Report Fiscal Year Ending August 31, 2012". Texas Education Agency. Retrieved April 4, 2013. Page at the cited URL contains a link to the report in PDF format; click on "I Agree" to download.
  2. ↑ 2.0 2.1 2.2 "Texas Permanent School Fund". Texas Education Agency Website. Texas Education Agency. Retrieved 7 January 2012.
  3. ↑ "Permanent School Fund". Texas General Land Office Website. State of Texas. Retrieved 7 January 2012.