The Legislative Permanent School Fund Commission held its first hearing of the year on Tuesday, January 26.
The Minnesota Department of Natural Resources (DNR) presented the FY 2015 Forestry Cost Certification Report. The DNR reported trust revenue in forestry is $12,204,576 and that total expenses are $8,159,289 — which translates into a total net deposit of $4,131,342 to the Permanent School Trust Fund as required by the Minnesota State Constitution.
These funds will be deposited to the current permanent school fund which a current balance of $992,306,531. It is our constitutional responsibility that interest and dividends be distributed to our schools annually.
Compared to last year, forestry revenue is up, expenses are stable and net revenue to the trust is up by $2 million.
Another way to look at the forestry performance: for every $3 the DNR generates in forestry revenue, $2 goes to the DNR for expenses in managing the land and $1 is deposited into the permanent school trust lands fund.
You can read the constitutional language below (Minnesota Constitution, Article XI, Section 8):
All funds arising from the sale or other disposition of the lands, or income accruing in any way before the sale or disposition thereof, shall be credited to the permanent school fund. Within limitations prescribed by law, the fund shall be invested to secure the maximum return consistent with the maintenance of the perpetuity of the fund. The principal of the permanent school fund shall be perpetual and inviolate forever. This does not prevent the sale of investments at less than the cost to the fund; however, all losses not offset by gains shall be repaid to the fund from the interest and dividends earned thereafter. The net interest and dividends arising from the fund shall be distributed to the different school districts of the state in a manner prescribed by law.
Visit http://www.lcc.leg.mn/lpsfc for more information about the Legislative Permanent School Fund Commission.