Idaho's state Land Board has voted unanimously to approve a recommendation from the state's Endowment Fund Investment Board for no increase in the distribution from the state endowment to public schools next year, holding schools at their current annual distribution level of $31.3 million. Larry Johnson, investment manager for the endowment fund, said the board recommended a 2.8 percent increase in total distributions from the endowment, based on earnings, but no increase for public schools and one other beneficiary, normal school, because their reserves are not yet at the target level, which is enough to cover five years' worth of distributions.
The board also recommended that $7.9 million from earnings reserves for six endowments be transferred into their permanent funds on Sept. 1, because those endowments, which include penitentiary and university, now have more than five years worth of distributions in their reserves. “The recommended distributions and transfers appear to be achievable and represent an appropriate balance between the interests of current and future beneficiaries, taking into account the current level of earnings reserves and expected future fund revenues,” Johnson said in his report to the Land Board.
The Idaho Constitution requires the state's endowment to be managed for maximum long-term returns to the beneficiaries, the largest of which is the state's public schools. With no discussion, Attorney General Lawrence Wasden moved to approve the recommendation, Secretary of State Ben Ysursa seconded the motion, and it passed unanimously. State Superintendent of Schools Tom Luna wasn't at the meeting; he's out of state.