New Mexico Land Grant Permanent Fund
{{Short description|Sovereign wealth fund in New Mexico}}
{{Infobox company
| type = Sovereign wealth fund
| industry = Institutional investor
| founded = 1912
| founder = Government of New Mexico
| key_people = {{Unbulleted list|Michelle Lujan Grisham (Chairperson)|Stephanie Garcia Richard (Vice Chair)|Laura Montoya (Treasurer)}}
| aum = $28.65 billion
| owner = New Mexico
| website = https://www.sic.state.nm.us/
}}
The New Mexico Land Grant Permanent Fund (LGPF) is a permanent fund that provides revenues to New Mexico's public schools and universities, among other special beneficiaries.{{Cite web |title=Land Grant Permanent Fund |url=https://www.sic.state.nm.us/investments/permanent-funds/land-grant-permanent-fund/ |access-date=2024-04-12 |website=New Mexico State Investment Council |language=en-US}} Its assets include mineral rights throughout the state.{{Cite journal |last=Williams |first=Amy |date=Summer 2008 |title=New Mexico's Land Grant and Severance Tax Permanent Funds: Renewable Wealth from Non-Renewable Resources |journal=Natural Resources Journal |volume=48 |issue=3 |pages=719–743 |jstor=}} It is one of the largest permanent funds in the United States, managing more than $28.65 billion in total assets.{{Cite web |last=MossAdams |date=June 30, 2023 |title=Report of Independent Auditors and Financial Statements with Supplementary Information |url=https://www.sic.state.nm.us/publications-reports/sic-annual-audit-reports/ |access-date=April 11, 2024 |website=SIC Annual Audit Reports}} It is the largest of New Mexico's four permanent funds.{{Cite web |last=Chief |first=Dan Boyd / Journal Capitol Bureau |date=2023-04-25 |title=NM permanent funds are more flush than ever — and still growing — amid revenue windfall |url=https://www.abqjournal.com/news/local/nm-permanent-funds-are-more-flush-than-ever-and-still-growing-amid-revenue-windfall/article_0221821e-d687-588a-8307-1df4fe1edbd0.html |access-date=2024-04-12 |website=Albuquerque Journal |language=en}}{{Cite web |last=Prokop |first=Danielle |date=2023-12-22 |title=N.M. State Land Office raises record revenues • Source New Mexico |url=https://sourcenm.com/2023/12/22/nm-state-land-office-record-revenues/ |access-date=2024-04-12 |website=Source New Mexico |language=en-US}}
Management
The fund is managed by New Mexico's State Investment Council, an independent state agency which functions as a sovereign wealth fund.{{Cite web |last=Rubel |first=Walt |date=2020-12-26 |title=The History Of New Mexico's Permanent Fund |url=https://www.krwg.org/regional/2020-12-26/the-history-of-new-mexicos-permanent-fund |access-date=2024-04-12 |website=KRWG Public Media |language=en}} The council is made up of certain members of the Government of New Mexico, who serve on an ex-officio basis, and public members appointed alternately by the Governor of New Mexico and New Mexico Legislature. Public members serve for five years and must be confirmed by the New Mexico Senate. Members may be re-appointed if the governor or legislature decide to do so,{{Cite web |title=Council Members |url=https://www.sic.state.nm.us/council-committees/state-investment-council/council-members/ |access-date=2024-04-12 |website=New Mexico State Investment Council |language=en-US}}
| class="wikitable"
|+Members of the New Mexico State Investment Council as of April 11, 2024 !Name !Position !Term |
| Michelle Lujan Grisham
|Chair; Governor of New Mexico |Ex Officio |
| Stephanie Garcia Richard
|Vice Chair; New Mexico State Land Commissioner |Ex Officio |
| Laura Montoya
|Ex Officio |
| Wayne Propst
|Secretary for the New Mexico Department of Finance and Administration |Ex Officio |
| Nicholas Telles
|Vice President of Finance, Santa Fe Community College |Ex Officio{{efn|The council is required to have among its members the CFO of a state institution of higher education.{{Cite web |title=Council Members |url=https://www.sic.state.nm.us/council-committees/state-investment-council/council-members/ |access-date=2024-04-12 |website=New Mexico State Investment Council |language=en-US}}}} |
| Catherine Allen
|Public Member; Legislative Appointee |2021–2025 |
| John Bingaman
|Public Member; Governor Appointee |2021–2026 |
| Dr. Kelly O'Donnell
|Public Member; Legislative Appointee |2023–2028 |
| L. Michael Messina
|Public Member; Governor Appointee |2019–2024 |
| Allen Sánchez
|Public Member; Legislative Appointee |2023–2028 |
| Kurt A. Sommer
|Public Member; Legislative Appointee |2022–2027 |
History
In 1893, the government of the United States passed the Ferguson Act, giving the New Mexico Territory lands meant to support New Mexico's schools and universities. While New Mexico had not yet joined the union, the Ferguson Act and the Enabling Act of 1910 were passed in anticipation of New Mexico's scheduled accession in 1912.{{Cite web |title=History |url=https://www.sic.state.nm.us/about-the-sic/history/ |access-date=2024-04-12 |website=New Mexico State Investment Council |language=en-US}}
Reform
Invest in Kids Now has called for the state to increase the fund's distribution to 7% to fund early-childhood education programs, particularly focusing on literacy; New Mexico ranks 50th in reading proficiency in the United States.{{Cite web |title=NAEP Reading: State Achievement-Level Results |url=https://www.nationsreportcard.gov/reading/states/achievement/?grade=4 |access-date=2024-04-12 |website=www.nationsreportcard.gov}}{{Cite web |last=Invest in Kids Now |title=How the Land Grant Permanent Fund Works |url=https://www.nmvoices.org/attachments/how-lgpf-works-1-11.pdf |access-date=11 April 2024 |website=Invest in Kids Now}}{{Cite web |title=Permanent Funding for Early Childhood |url=https://investinkidsnow.org/ |access-date=2024-04-12 |website=Invest in Kids Now! |language=en-US}} In 2022, voters approved a constitutional amendment requiring a 1.25% distribution from the fund to provide early childhood education.{{Cite web |date=October 2022 |title=The New Mexico Secretary of State's 2022 General Election Voter Guide: Proposed Constitutional Amendments, General Obligation Bonds & General Information About Voting in New Mexico |url=https://www.sos.nm.gov/wp-content/uploads/2022/10/2022-Voter-Guide_English.pdf |access-date=11 April 2024}}{{Cite web |title=New Mexico Constitutional Amendment 1, Land Grant Permanent Fund Distribution for Early Childhood Education Amendment (2022) |url=https://ballotpedia.org/New_Mexico_Constitutional_Amendment_1,_Land_Grant_Permanent_Fund_Distribution_for_Early_Childhood_Education_Amendment_(2022) |access-date=2024-04-12 |website=Ballotpedia |language=en}} The amendment passed by more than 70%.{{Cite web |last=Candelaria |first=Esteban |date=2022-11-08 |title=Voters approve amendment to spend more money on early childhood education |url=https://www.abqjournal.com/news/local/voters-approve-amendment-to-spend-more-money-on-early-childhood-education/article_9e022d61-98b7-5bda-ae8d-6187dd0cab47.html |access-date=2024-04-12 |website=Albuquerque Journal |language=en}}
Notes
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