Sponsor Statement for SB 84

Assets of the University of Alaska

Congressional acts of 1915 and 1929 granted the Territory of Alaska approximately 113,000 acres of land. The grants were for the exclusive use and benefit of the Alaska Agricultural College and School of Mines, and its successor, the University of Alaska. All earnings from the sale, lease, or use of these lands has been deposited into a trust fund established under AS 14.40.400. As of June 30, 1996, the fund has grown to approximately $32.6 million.

Senate Bill 84 transfers management of these funds from the Department of Revenue to the Board of Regents. The University will be able to coordinate management of the investments of these funds with management of its other endowments. This will substantially lower the cost of administration. The transfer will also maximize the fund's earnings potential and permit greater investment diversification.

SB 84 provides a technically sound transfer of control of an endowment fund from the Department of Revenue to the University of Alaska. The University has demonstrated a sound investment history in relation to the University of Alaska Foundation endowment funds. This same expertise will be extended to the Natural Resource Endowment.