Presentation on theme: "School Trust Lands— Challenges and Opportunities Aaron C. Garrett School Children’s Trust Section, USOE November 12, 2014."— Presentation transcript:
School Trust Lands— Challenges and Opportunities Aaron C. Garrett School Children’s Trust Section, USOE November 12, 2014
OUTLINE What are Trust Lands? What are the Opportunities? What are the Challenges?
TYPES OF LAND Private Federal State Trust Lands
Where Did Trust Lands Come From?
Statehood Deal State Agrees Not to Tax Federal Domain Federal Government Grants Land to State for Support of Free, Public, Nonsectarian Schools
Utah Enabling Act Law passed by Congress offering entrance into the Union Contains terms and promises of both parties Confirmed by Utah in its Constitution
How Did Trust Lands Come to Be? Thomas Jefferson
School in Every Township Section 16 Ohio (1803) – Minnesota (1858) The Arid West Sections 16 and 36 Oregon (1859) – Wyoming (1890) The ‘Really’ Arid West Sections 2, 16, 32 & 36 Utah, Arizona and New Mexico
Currently: 3.4 million surface acres of Trust Land in Utah Lands Earn Revenue From: Minerals Surface Development Grazing Forestry
When did the trust lands really start making money to help fund schools?
1994 Trust Lands Management Act Created School and Institutional Trust Lands Administration (SITLA) Codified a fiduciary duty to manage trust lands for the best financial interests of the beneficiaries (public school system) At SITLA’s Creation, Permanent State School Fund had approximately $50 million, now approaching $2 BILLION.
Growth in Permanent Fund (log scale)
Growth in Permanent Fund June 30, 1987 Balance: $ 15,271,659 Sept. 30, 2014 Balance:$1,914,763,501 Growth Rate of 1240%
Growth in Permanent Fund FY 2014 SITLA contribution to Fund: $122 Million FY 2014 Investment Growth: $155 Million FY 2014 Distribution: $39 Million