Idaho’s public schools are set to get 28.1 percent more in state endowment distributions next year, for a total of $47.1 million, up $10.3 million from this year’s $36.7 million distribution. The proposed distribution won unanimous support from the state Land Board today, with state schools Superintendent Sherri Ybarra declaring, “I second that, absolutely.”

State Endowment Investment Fund Manager Larry Johnson told the Land Board, “The decisions we’re recommending to you today are prudent and sustainable.”

None of the state’s other seven endowment beneficiaries will receive increases next year; they’ll be held at this year’s level. That includes endowments that benefit the state’s universities, prisons and State Hospital South.

Johnson said the other seven endowments already had recovered their reserve levels to recommended levels after the economic downturn, but the public schools endowment took longer – it just hit that point at the end of fiscal year 2016, which ended in June. That’s when, according to endowment rules, the public schools endowment recognized $107 million in deferred gains from investment proceeds in the two previous fiscal years.

Of that $107 million, $10.3 million will go to the distribution increase for next year; $47.4 million will be transferred to the permanent fund for the school endowment; and the remainder will complete the needed bolstering of reserves.

Attorney General Lawrence Wasden, who made the motion to approve the proposed distributions, said, “That actually is a gift that keeps on giving, because it goes into the calculation, and actually does impact population growth and inflation as it goes to the public schools. It is a very good thing.” The boost to the permanent fund for schools will mean increased distributions in all future years.

Total distributions from the state endowment for next year were set at $73.5 million, which will be a record high.

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