Bill Signed to Modernize Alaska’s Public School Trust Fund Using POMV Model
Office of Governor Bill Walker
FAIRBANKS, AK—Legislation was signed into law changing the management structure of the $675 million Alaska Public School Trust Fund to a percent of market value (POMV) system. POMV has become the standard global management approach for large endowments and trusts. House Bill 213, sponsored by Representative Justin Parish (D-Juneau), will result in a significant increase in funding available for public education in Alaska.
“Modernizing the Public School Trust Fund makes good sense. This bill brings the Trust up to the industry standard and will make better use of a significant financial resource,” said Rep. Parish. “Switching to a POMV model will enable a higher earnings rate and protect the value of the trust fund while yielding several million more dollars per year for schools.”
HB 213 authorizes a yearly draw of no more than five percent from the Public School Trust Fund. Once implemented, the restructured trust fund will make an additional $18 million available for local school districts and the Mt. Edgecumbe Boarding School based on the size of the fund in Fiscal Year 2019.
HB 213 also creates a new education endowment fund and authorizes a new yearly state raffle. Both funds will be financed by voluntary donations of a portion of the yearly Permanent Fund Dividend given to each eligible Alaskan.
“My thanks go to every lawmaker, staffer, and stakeholder who worked on this bill, which I believe serves the best interests of our children and future generations of Alaskans. Together we can make a brighter future,” said Rep. Parish.
House Bill 213 initially passed the Alaska House of Representatives in March by a vote of 21-16. The Alaska State Senate passed the bill on May 12 by a unanimous vote of 19-0, and the members of the Alaska House quickly concurred with the changes to the bill made in the Senate. Alaska Governor Bill Walker signed House Bill 213 into law today during a ceremony in Fairbanks. The bill takes effect on January 1, 2019.