The Public School Trust Fund was established by the Alaska State Legislature in Alaska Statute  37.14.110 – 37.14.170. The source of funding for the investment portfolio originally consisted of income from the sale or lease of land granted by an Act of Congress on March 15, 1915, but is now composed primarily of one-half of one percent of State receipts from the management of all State lands as prescribed by AS 37.14.150. Until November 2018, the principal of the fund, and all capital gains/losses thereon, was perpetually retained in the fund (AS 37.14.110). The remaining net income of the fund could be used for the State public school program (AS 37.14.140). Net income that could be spent was maintained in a separate Income Fund from the Principal Fund. 

In November 2018 HB213 became effective converting the fund to a percent of market value (pomv) structure whereby each year the legislature may appropriate not more than five percent of the amount determined by the commissioner of revenue under AS 37.14.160(5). The Income Fund was subsequently liquidated with Principal Fund remaining, this fund was renamed to the Public School Trust Fund.

The current market value and target asset allocation of the fund is shown on the adjoining chart. As well, historical balances and returns for the funds are listed in the tables to the right.

Target Asset Allocation

As of 7/1/2023