The bill establishes a new "school generational account" within the permanent land fund, aimed at creating a sustainable source of funding for schools through long-term investments. The account is designed to be inviolate, meaning the principal amount will remain untouched, while the earnings generated from investments will be directed to a newly created "school generational income account." These earnings can only be appropriated for educational purposes after a minimum period of 22 years, ensuring that the funds are preserved for future generations. The investment strategy for the school generational account will focus on achieving a high risk-adjusted return, with specific guidelines on the risk profile of investments.

Additionally, the bill amends existing statutes to incorporate the new accounts and outlines the procedures for managing and appropriating funds. It specifies that earnings from the school generational account will be deposited into the school generational income account, which can only be accessed through legislative appropriation. The bill also includes a one-time appropriation of $100 million from the sale of state school trust lands to the school generational account, ensuring that these funds are dedicated solely to this purpose and will not lapse at the end of the fiscal period without further legislative action.

Statutes affected:
Introduced: 9-4-203, 9-4-305, 9-4-310, 9-4-716