New Mexico Land Grant Permanent Fund Explained

Type:Sovereign wealth fund
Industry:Institutional investor
Founded:1912
Founder:Government of New Mexico
Aum:$28.65 billion
Owner:New Mexico
Website:https://www.sic.state.nm.us/

The New Mexico Land Grant Permanent Fund (LGPF) is a sovereign wealth fund that provides revenues to New Mexico's public schools and universities, among other special beneficiaries.[1] Its assets include mineral rights throughout the state.[2] It is one of the largest sovereign wealth funds in the United States, managing more than $28.65 billion in total assets.[3] It is the largest of New Mexico's sovereign wealth funds.[4] [5]

Management

The fund is managed by the New Mexico State Investment Council.[6] The council is made up of certain members of the Government of New Mexico, who serve on an ex-officio basis, and public members appointed alternately by the Governor of New Mexico and New Mexico Legislature. Public members serve for five years and must be confirmed by the New Mexico Senate. Members may be re-appointed if the governor or legislature decide to do so,[7]

Members of the New Mexico State Investment Council as of April 11, 2024!Name!Position!Term
Michelle Lujan GrishamChair; Governor of New MexicoEx Officio
Stephanie Garcia RichardVice Chair; New Mexico State Land CommissionerEx Officio
Laura MontoyaTreasurer of New MexicoEx Officio
Wayne PropstSecretary for the New Mexico Department of Finance and AdministrationEx Officio
Nicholas TellesVice President of Finance, Santa Fe Community CollegeEx Officio
Catherine AllenPublic Member; Legislative Appointee2021–2025
John BingamanPublic Member; Governor Appointee2021–2026
Dr. Kelly O'DonnellPublic Member; Legislative Appointee2023–2028
L. Michael MessinaPublic Member; Governor Appointee2019–2024
Allen SánchezPublic Member; Legislative Appointee2023–2028
Kurt A. SommerPublic Member; Legislative Appointee2022–2027

History

In 1893, the government of the United States passed the Ferguson Act, giving the New Mexico Territory lands meant to support New Mexico's schools and universities. While New Mexico had not yet joined the union, the Ferguson Act and the Enabling Act of 1910 were passed in anticipation of New Mexico's scheduled accession in 1912.[8]

Reform

Invest in Kids Now has called for the state to increase the fund's distribution to 7% to fund early-childhood education programs, particularly focusing on literacy; New Mexico ranks 50th in reading proficiency in the United States.[9] [10] [11] In 2022, voters approved a constitutional amendment requiring a 1.25% distribution from the fund to provide early childhood education.[12] [13] The amendment passed by more than 70%.[14]

Notes and References

  1. Web site: Land Grant Permanent Fund . 2024-04-12 . New Mexico State Investment Council . en-US.
  2. Williams . Amy . Summer 2008 . New Mexico's Land Grant and Severance Tax Permanent Funds: Renewable Wealth from Non-Renewable Resources . Natural Resources Journal . 48 . 3 . 719–743 . JSTOR.
  3. Web site: MossAdams . June 30, 2023 . Report of Independent Auditors and Financial Statements with Supplementary Information . April 11, 2024 . SIC Annual Audit Reports.
  4. Web site: Chief . Dan Boyd / Journal Capitol Bureau . 2023-04-25 . NM permanent funds are more flush than ever — and still growing — amid revenue windfall . 2024-04-12 . Albuquerque Journal . en.
  5. Web site: Prokop . Danielle . 2023-12-22 . N.M. State Land Office raises record revenues • Source New Mexico . 2024-04-12 . Source New Mexico . en-US.
  6. Web site: Rubel . Walt . 2020-12-26 . The History Of New Mexico’s Permanent Fund . 2024-04-12 . KRWG Public Media . en.
  7. Web site: Council Members . 2024-04-12 . New Mexico State Investment Council . en-US.
  8. Web site: History . 2024-04-12 . New Mexico State Investment Council . en-US.
  9. Web site: NAEP Reading: State Achievement-Level Results . 2024-04-12 . www.nationsreportcard.gov.
  10. Web site: Invest in Kids Now . How the Land Grant Permanent Fund Works . 11 April 2024 . Invest in Kids Now.
  11. Web site: Permanent Funding for Early Childhood . 2024-04-12 . Invest in Kids Now! . en-US.
  12. Web site: October 2022 . The New Mexico Secretary of State's 2022 General Election Voter Guide: Proposed Constitutional Amendments, General Obligation Bonds & General Information About Voting in New Mexico . 11 April 2024.
  13. Web site: New Mexico Constitutional Amendment 1, Land Grant Permanent Fund Distribution for Early Childhood Education Amendment (2022) . 2024-04-12 . Ballotpedia . en.
  14. Web site: Candelaria . Esteban . 2022-11-08 . Voters approve amendment to spend more money on early childhood education . 2024-04-12 . Albuquerque Journal . en.

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