Tapping Into the Nest Egg
With no end in sight for the budget crisis facing districts, the Texas State Board of Education approved a plan in July that would allow 3.3 percent of the state’s Permanent School Fund to be distributed to public schools for fiscal years 2014 and 2015. The expected payout is roughly $830 million each year—or $1.7 billion.
The Texas Permanent School Fund was established in 1876 when half of the state’s remaining public lands were set aside and the revenue from sales, trades, leases and other transactions would thereafter be deposited into the Fund. The Fund was created with just $2 million and only interest income from the fund can be spent.