By Staff Reporter |
Arizona’s Permanent Land Endowment Trust Fund (PLETF) market value surpassed $10 billion, the Arizona Treasurer’s Office announced.
PLETF reflects the deposits and investments of proceeds from public land sales. The federal government gave nearly 11 million acres to Arizona for endowment when it achieved statehood in 1912, just as it had done for other states.
PLETF has 13 beneficiaries, but its main beneficiaries are K-12 public schools, which includes the Arizona State School for the Deaf and Blind. Other beneficiaries include the state’s universities; state prisons; the State Hospital; the legislative, executive, and judicial branches; the Arizona Miners’ Hospital; and the Arizona Pioneers Home.
(State law slated the Arizona Pioneers Home and Arizona Miners Hospital for termination in July 2032).
Arizona Independent Redistricting Commission data reported the remaining total of state trust land to be about nine million out of the original 11 million acres. The state has a total of nearly 73 million acres.
That nine million acre estimate equals about 13 percent of total land in the state. Privately-held land only makes up 14 percent of Arizona land.
PLETF’s 10-year returns were reported to have outperformed the average U.S. college and university endowments for the past decade.
In February, the PLETF had a fair market value of $10.1 billion.
The latest reported all-time high, the newest in a succession of all-time highs, can be attributed to the treasurer office’s director of endowments, Tim White.
White has managed PLETF’s stock portfolio for nearly 30 years (since 1999). Per the treasurer’s office, White has the ultimate decision-making responsibility on all holdings and trades for PLETF.
White’s tenure has overseen a growth of the PLETF fair market value from $475 million in 1992 to repeated all-time highs, including the most present reporting.
Despite this progress, some argue the PLETF could be doing more.
The Common Sense Institute Arizona (CSI) issued a report critical of the approach to the PLETF last November. In it, CSI argued that the administration of PLETF has failed for a long time — not just for the duration of this administration, but for the last 100 years.
CSI claimed PLETF could have been worth more than $163 billion, over sixteen times this latest historic amount, and could have distributed $140 billion to beneficiaries.
CSI estimated in its report that the ordered sale of remaining trust land over the next ten years would generate more than $18 billion in revenue and $55 billion in new economic activity.
The organization’s director of policy and research, Glenn Farley, told KJZZ last December that the state has taken the most action on growing the financial account but hasn’t taken enough action on selling the physical land. Farley advocated for a “foundational reevaluation” of the state’s timeline for land sales and its PLETF priorities.
“[T]his is not an administrative problem,” said Farley. “This is a 100-year problem. No administration in this state has really taken full advantage of this asset.”
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