News from the Senate Majority

Alaska State Legislature

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

For Immediate Release: March 21, 1997 Contact: Senator Gary Wilken 907/465-3709

Legislature Votes To Give University Control Of Its Natural Resource Endowment Fund

Juneau -- The Alaska State House unanimously passed legislation Friday to transfer control of the University’s Natural Resource Endowment Fund from the Department of Revenue to the University of Alaska.

This legislation places management of the fund with the University, sets out the orderly transfer of the fund, and sets in statute sensible endowment management principles, said Senator Gary Wilken (R-Fairbanks) who sponsored SB 84.

“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.

Showing his support for the legislation, University President Emeritus William Wood sat in the gallery as the State House voted to pass the bill.

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