Land Board approves increased pa

Land Board approves increased payouts

August 22, 2012

The State Board of Land Commissioners (Land Board) on Tuesday approved a 2.8-percent overall increase in fiscal year 2014 (FY14) financial distributions over the FY13 payouts from State Endowment funds, bringing the total FY14 distribution for all Endowment beneficiaries to nearly $49 million.

The Land Board’s approval of the Endowment Fund Investment Board’s (EFIB) recommendation will increase financial distributions in FY14 for six of the nine Endowment Trusts.

FY14 distributions from the Public School Fund and the Normal School Fund will remain at the FY13 levels because their reserves are not yet at the target level of five years, and FY14 distributions from the Capitol Permanent Fund have not yet been determined.

“The recommended distributions balance the interests of current and future beneficiaries, taking into account the current level of earnings reserves and expected future fund revenues,” said Larry Johnson, EFIB manager of investments.

Beneficiaries of the Endowment Trusts are just beginning to receive their payouts for the current fiscal year, FY13, which began in July 2012 and ends in June 2013. The FY14 distributions approved today will be factored into the budgets the Endowment beneficiary institutions are putting together now for legislative approval in 2013. Fiscal Year 2014 starts in July 2013.

The Endowment Trusts provide financial distributions to 14 legal beneficiaries. The largest beneficiary is the state’s public school system. Other beneficiaries include the University of Idaho, Idaho State Veterans Homes, State Hospitals North and South, Idaho State University, Lewis-Clark State College, the Idaho School for the Deaf and Blind, and others.

The trusts were established at statehood with land assets granted to Idaho to support the trusts. Revenue from the Idaho Department of Lands’ management of more than 2.5 million acres of State Endowment Trust land feeds the funds, which are managed by the EFIB and from which payouts ultimately are made to the Endowment beneficiaries.