Office History When South Dakota became a state in 1889, the Federal - PDF document

Agency Presentation - SPL - FY14 Friday, February 08, 2013 10:25 AM South Dakota Office of School and Public Lands February 11th, 2013 Joint Appropriations Committee Presentation School & Public Lands Budget

DEPUTY COMMISSIONER Ry n Brunner OIL, GAS & MINERAL AGENT COMMISSIONER Graham Oey, J.D. Jarrod Johnson SURFACE AGENT INVESTMENT OFFICER ADMINISTRATIVE SECRETARY Mike Cornelison Renee Knapp Claudia Cepak 2

Office History When South Dakota became a state in 1889, the Federal Government granted the state over .5 million acres of land. Township sections 16 and 36 v. ere reserved for school and public purpo es; these are known as Common S hool Lands. If the sections were al.ready settled, the govenunent provided rep la ement proper!:) known as inde1mlity la nd s. Additional proper ty was also provided to be used however the state wished. The outh Dakota Constih.ttion di\ ided these land s among the tate' mli ersities, the S hool for the Visually Handi ca pped , the School for the Deaf, State Trai.Iling School, and the Deve lopmenta l Ce nter in Redfield. To manage these land s and the money generated, the c on stitution establis hed the Office of c hool and Publi Lands. Acco rding to the Constitution, common sc hool and indenulity land s were either to be so ld or lea sed and the pro eeds deposited in a pennanent tm st fund for education. The prin cipal co uld be increased, but ne ver dimillis hed . Interest from the fund was to be used for fundiI1g education. Each year the office return s approximately $10 nlillion to school districts an d endowed in stitutions. The mane is generated from grazing, mineral, oil and gas leases, interest from the Perman e nt Fund , and in terest earned on land and sales contracts. 3

~ ~ Inco me Flow Chart Capital gains tluough in,·estments (net of adjustments for inflation target) ' . , ' - - Permanent Trust Principal Payments Fund t 1 , Interest and Interest - Land Contracts Di vidends Payments t Distribution to school districts - Oil, Gas & ~inera l Income Account r--+- on a per pupil basis and Revenues endowed institutions on a fixed percentage set in statu te j • sss Surface Rental and Miscellaneous Income 4

Surfa , Divi ion L as s ar for 5 y ars • Surfac with a 5 y ar pti n • v r 2 00 1 as s on 768,133.134 a re $3,581,880. 01 COMMON SCHOOL $312,884.41 SOUTH DAKOTA STATE UNIVERSITY $99,964 17 UNIVERSITY OF SOUTH DAKOTA • tate manag s weed $46,515.67 PUBLIC BUILDINGS and p st control on $15,142.85 SDSU EXPERIMENTAL STATION $25,738.33 DOC JUVENILE PROGRAMS land thr ugh th $33, 621 . 11 SCHOOL FOR THE DEAF $51 ,793.75 SCHOOL FOR THE VISUALLY IMPAIRED weed a nd pest fund $77,069.40 REDFIELD HOSPITAL AND SCHOOL $48,045 14 SCHOOL OF MINES Ex ut • a m nt $157,508.58 DAKOTA STATE UNIVERSITY $71 , 681 96 SPRINGFIELD and land sales for $77,954. 84 NORTHERN STATE UNIVERSITY 1,767 10 other agencies in sta t REDFIELD SDDC ACCT $8,780.00 CORRECTIONS / PLANKINTON g v rnm nt $75 881 30 DOC ( WEST FARM BUDGET) TOTAL $4,686,228.62 5

Min eral Divis ion • State own 5 .2 million a res of mineral right • 50% of rev nue paid out annua lly and 50% to the SPL Tru t Fund Mineral, Oil & Gas Lease Rentals $ 238,224.00 $2,890,802.47 Oil & Gas Ro ya lty Mineral, Oi l & Gas Bonu s $ 838,425.00 Oil & Ga As ignment Fee $ 120.00 I nt re t $ 14,443.12 TOTAL $3,982,014.59 6

TY C unty 2,51 .24 Butt u t r 4. FllRi r . 35 222,205.4 Hardin P rkin 52,5 6.0 J r ulc 2. 7,96 .0 Mad 5 2. ' T 15. I TOTAL ACRES 354,741.08 7

Permanent Trust Fund At state h ood, the P ermanent T rust Fund was established wit h the intent of providing a ontinuou our e of revenue for publi chool , univer iti and endowed in titution . Pro eed from th e ale of l and are to be deposited in the fund, which can be added to but never dimini h ed . The int erest revenue ge n era t ed by the fund is a pportion ed to sc hool districts, univ ersiti es a nd e ndow ed in stitutions. • FY 2012 in come of $6 Million • Infl ation adjustment of $3.2 million • Pa y out of $2. million FY 2013 YTD fr01n D Investment ouncil Fair Va l ue as of 12/31/12 $ 207,226,129 Fiscal year to date return 7. 24 % Longterm expected mean return 6 43 % 8

Dollars to Education • K-12 Schools- $7,433,191.37 • Board £ Regent - $1,436,570.44 • Endowed Institutions- $519,966.28 Total $9,389,728.09 9

Dollars Returned to Universities Sou th Dakota tat Univer ity $ 548,451.00 Dakota State University $ 17 3,360.00 University of Sou th Dakota $ 236,041.73 SD School of Min es & T echno lo gy $ 121,965.44 Black Hill State Univers it y $ 17 3,360.00 Norther n State University $ 183,393.00 TOTAL $1,436,570.44 10

Dollars Return d to Endowed Institutions $ 86,859.84 Juvenile rre tion SD & SVH Administrative Fund $ 44,212.63 Redfield Development en t er $132,219.72 School for the D eaf $ 96,015.06 SDSU Exper im e nt al Sta tion $ 65,947.03 S hool for the Visually H an d icappe d $ 94,712.00 TOTAL $519,966.28 11

WEED AND PEST CONTROL • Stat Law R quir s land own r manag noxious weeds • FY 12 S , hool & Publi , Land sp nt $172,554.00 on efforts to control and manag noxious w eds & pests • We provided ,h mi ,al and poison to control noxious w ds and p sts at th r quest of 1 ss es and ounty w d up rvi or 12