What are Permanent Funds?

Revenue from trust lands are placed in permanent funds. Revenue sources from the land that flow into the permanent fund vary from state to state.

Every state places revenue from land sales in the permanent fund. In some states, all the revenue flows to the fund, increasing the fund and investment revenue each year. In others, it is only revenue from resources that are non-renewable that are deposited into the fund, and renewable resources are distributed directly to schools.

Once the profits are placed in the trust land account, they will be held for an indefinite time for the schools. In Utah, each school has a community council that consists of the administration, parents, and teachers. This local committee determines how that school will use the trust land fund for the benefit of the students. In other states, the funds are distributed in other ways.

The permanent funds are generally managed by the State Treasurer, a professional investment board, or the Land Board.