State School and Institutional Trust Funds
The State Treasurer is responsible for managing over $1.6 billion of long-term investments on the behalf of the State School and other Institutional Trust Funds (the “Trust Funds”). The Trust Funds stem from the State’s Enabling Act, which provided for the support of public schools and other institutions from lands granted by the Federal Government at statehood, creating a public trust. Revenues derived from the sale of lands are deposited into the various beneficiary trusts and constitute a permanent fund from which only the interest and dividends can be expended.
The Trust Funds investments are managed to balance the short-term needs of the beneficiaries for current income with the need for long-term growth for the benefit of future beneficiaries. The growth in the market value held in the Trust Funds over the last ten years is shown below.
State School Fund
The State School Fund is the single largest Trust Fund, with a balance of approximately $1.523 billion as of June 30, 2013. The interest and dividends earned by the State School Fund are distributed to schools statewide under the School LAND (Learning And Nurturing Development) Trust Program. Distributions through the LAND Trust Program are used by schools to address their most critical academic needs.
These funds are distributed directly to schools each year to support academic programs chosen by local “School Community Councils” (composed of parents, teachers and the principal from each school) and approved by each respective school’s local school board.
The State School Fund earned $37.8 million in the fiscal year ending June 30, 2013. Interest and dividends earned by the State School Fund for the past 10 years are shown below.
Investment Advisory Committee
The State Treasurer's office is supported by an Investment Advisory Committee, which meets with State Treasurer's office investment staff on a quarterly basis to aid in the evaluation and development of State School and Institutional Trust Funds investment strategies. The Committee's members are:
Jeff Cardon (Chair) President & Portfolio Manager, Wasatch Advisors David T. Cowley Vice President for Business and Finance, Utah State University Arnie Combe Vice President of Administrative Services, University of Utah Sterling K. Jenson Regional Managing Director, Wells Capital Management Kimo Esplin Executive Vice President and Chief Financial Officer, Huntsman Corporation Jeff Roylance President, Summit Capital Advisors Steven B. Ostler Vice Chairman, The Boyer Company