News from the Senate Majority

Alaska State Legislature

Wendy Lindskoog, Senate Majority Press Secretary
State Capitol
Juneau, AK 99801-1182
Phone: 907/465-4582
web site: http://www.akrepublicans.org
Broadcast Actualities: 800/478-6540

For Immediate Release: April 11, 1997 Contact: Senator Gary Wilken 907/465-3709

New Law Gives University Control Of Its Natural Resource Endowment Fund

Juneau -- Senator Gary Wilken’s bill to transfer control of the University’s Natural Resource Endowment Fund from the Department of Revenue to the University of Alaska was signed into law Thursday.

"I want to applaud Senator Wilken for piloting his first bill as a new legislator into law. Senator Wilken is hardworking, dedicated and thorough. He is a real asset to our Senate team," said Senate President Mike Miller.

Senator Gary Wilken (R-Fairbanks), sponsorer of SB 84, noted that this statute places management of the fund with the University, sets out the orderly transfer of the fund, and sets in statute sensible endowment management principles.

"The University has demonstrated sound and wise investment decisions in managing its various assets. Knowing this, I am confident that the Natural Resource Endowment Fund will be in good hands," said Wilken.

"Eliminating the Department of Revenue as middleman and allowing the University to manage this asset makes good financial sense," Wilken said. "The transfer will substantially lower the cost of administration, maximize the fund’s earnings potential and permit greater investment diversification."

Senate Bill 84 will create:

• Better accountability because the University would be responsible and accountable for its own money.
• Increased returns over existing investments.
• Savings of $35,000 per year in administrative costs.

Wilken explained that Congress, in 1915 and 1929, granted the Territory of Alaska approximately 113,000 acres of land for the exclusive use and benefit of the University of Alaska as the successor institution to the Alaska Agricultural College, School of Mines. All the earnings from the sale, lease, or use of these lands has been deposited into a trust fund that as of June 30, 1996, has grown to approximately $32.6 million.

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