Building Permanent School Funds
Over the years, trust lands in many states have been sold off or mismanaged to such an extent that 23 states—primarily in the Midwest—have lost all their school trust lands and depleted their funds without repayment. This mismanagement has left schools without critical revenue and highlights the urgent need for oversight and accountability.
Today, land commissioners face growing pressures to prioritize interests other than those of beneficiary schools. Without strong advocacy and opposition to poorly conceived proposals, schools suffer. The consequences are clear: when revenue doesn’t flow into the school fund, students and communities pay the price.
Examples of mismanagement include:
Selling school land below market value.
Giving away acreage with no compensation, as seen in Oregon.
Federal land conservation designations capturing school trust lands without rental or sale payments.
Poor financial management of permanent funds, reducing revenue.
Selling coal-rich lands at bargain prices, such as Utah’s sale for $2.50/acre despite federal recognition of the land’s value.
Diverting revenue to address other state needs, like Montana’s use of coal royalty funds to cover immediate school expenses.
States borrowing from the school fund without repayment.
Allowing trust lands to remain unproductive, contrary to the state’s duty as trustee.
Blocking economic activity, such as Oregon’s Elliott Forest lands being off-limits to timber harvesting for over a decade.
Designating hundreds of thousands of acres as “open space” without compensation, as in Colorado’s case with 300,000 acres.
And the list goes on.
The greatest threat to the revenue generated by school trust lands isn’t just mismanagement—it’s silence. Without advocates to speak out and watchdogs to hold decision-makers accountable, these lands will continue to be undervalued, underutilized, or lost altogether.
Schools need champions. Beneficiaries need voices. Without them, the future of education funding through school trust lands remains in jeopardy.
“In many states, the permanent funds and the proceeds which should have been added to them have been so carelessly diverted, squandered, wasted, and embezzled so shamefully that what ought to be a magnificent endowment has dwindled to an almost negligible sum”
Timber harvesting on trust lands yields valuable revenue that bolsters school funding efforts and lessens the danger of wild fires.
Timber harvesting on trust lands yields valuable revenue that bolsters school funding efforts and lessens the danger of wild fires.
Growing School Trusts
Advocates for School Trust Lands (ASTL) is dedicated to safeguarding and maximizing the value of school trust lands and funds. This coalition of educators, parents, school board members, state land commissioners, land users, and stakeholders works tirelessly to uphold the promise made to today’s students and future generations.
Delivering Tangible Results for Education
Transforming Utah’s Revenues: Through ASTL’s efforts, Utah achieved an extraordinary 479% increase in school trust land revenues and grew its permanent fund from $18 million to nearly $4 billion.
Legislative Wins in Minnesota: ASTL was instrumental in passing legislation to appoint a dedicated school trust lands director, ensuring more effective oversight and management of trust resources.
Preserving Critical Funds: In Oklahoma, ASTL safeguarded over $600,000 in grazing funds from being diverted during a drought year. Additionally, the organization successfully opposed efforts in Arizona and Montana to reduce revenue streams from school trust lands.
Expert Leadership and Strategic Advocacy
Denise Dittrich, a former Minnesota legislator and ASTL Board member, collaborated with the Minnesota School Boards Association to champion legislation establishing a nine-member task force. This task force, comprised of experts in institutional asset management, investment finance, trust administration, and related fields, will evaluate and enhance the distribution of earnings from the permanent school fund endowment. Their findings and recommendations, aligned with Minnesota statutes, will be delivered to legislative leaders by January 2026.
Why ASTL Matters
The stakes couldn’t be higher. Without vigilant management and strong advocacy, the lands and funds designated to support public education risk being underutilized, mismanaged, or lost entirely. ASTL ensures these critical resources fulfill their intended purpose—providing vital support for students today and securing the future of education for generations to come.
Harvesting crops from trust lands fuels crucial financial support that enhances school fund allocations.
By tapping into the mineral wealth of trust lands, mining delivers vital income that supports school funding.