FILE PHOTO: school. Photo by Element5 Digital on Unsplash
Public schools in Utah will receive a record-breaking $101 million from the Permanent State School Fund this year, a 5.4% increase from last year’s distribution of $95.85 million and 8.8% more than the previous year’s $92.84 million. This funding is separate from other tax-funded sources for K-12 public schools.
Under the School LAND Trust Program, the investment earnings from the Permanent State School Fund are distributed to every school in the state based on a per-pupil formula. School Community Councils, made up of parents and educators, determine how the funds are used to meet the specific academic needs of their schools. This has led to benefits such as new library books and hiring classroom aids.
“Collaboration between parents and educators leads to impressive results for students,” said Paula Plant, Director of the School Children’s Trust at the Utah State Board of Education.
The Utah School LAND Trust Program is managed by four separate agencies: the School and Institutional Trust Lands Administration (SITLA), which manages the state’s 3.4 million acres of school trust lands; the School and Institutional Trust Funds Office (SITFO), which manages the investment portfolio of the Permanent State School Fund; the School Children’s Trust, which administers the distribution program and supports School Community Councils; and the Land Trusts Protection and Advocacy Office, which ensures the interests of beneficiaries are maximized.
“This unique model of funding local academic needs has been a huge success,” said State Treasurer Marlo Oaks.
SITLA generated a record-breaking $166 million in revenue last fiscal year, a $64 million increase from the previous year, for the Trust’s 12 beneficiaries, with public schools being the largest. SITFO invests the permanent endowments of the beneficiaries and realized a net growth of $655 million in fiscal year 2021.
“SITFO is proud to be a part of a system that protects and grows valuable trusts,” said SITFO Director and Chief Investment Officer Peter Madsen. “The trusts are diversified and have weathered recent volatility well, with a base-case expectation for long-term gains.”
In 1994, SITLA was created by the legislature as the first branch of the current system after a dilution of trust principles was discovered. The Permanent State School Fund has grown from $50 million to $3.2 billion since the creation of the trust system.
“Protecting the interests of beneficiaries is our focus,” said Land Trusts Protection and Advocacy Office Director Kim Christy. “Ensuring the system remains independent and free from political influence is crucial for its continued success as a strong source of revenue now and in the future.”