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SALT LAKE CITY — Utah's Permanent State School Fund posted record earnings in fiscal year 2016, with the fund's balance now exceeding $2 billion.

Last year, the fund grew by 7.7 percent, or $49.3 million, according to state Treasurer David Damschen.

The Permanent State School Fund is Utah’s largest land grant trust fund, which has grown from $18 million in 1983 to over $2 billion in 2016.

The fund’s interest and dividends are distributed directly to schools statewide each year under the School Learning and Nurturing Development Trust Program.

The funds support academic programs chosen by school community councils, made up of parents, teachers and the principal of each school. The plans are then approved by the respective local boards of education. In 2015, schools received $45.8 million.

“Every dollar we earn through prudent investment of state school fund is a dollar in school funding not paid by the Utah taxpayer, and this year we’re excited to announce record earnings,” Damschen said in a statement.

“These funds support academic programs chosen at the local level and are increasingly becoming more important in how we invest in the education of Utah’s children,” he said.

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The Utah Enabling Act and state Constitution require the establishment of a permanent school fund. All net proceeds of trust lands are deposited into the fund.

Interest and dividends are distributed directly to Utah public schools. Capital gains on the investments are reinvested in the fund to ensure ongoing viability of the program.

David Crandall, chairman of the Utah State Board of Education, said the board is "dedicated to maintaining the fund’s long-term viability for the schoolchildren of today and the future, and (board members) are pleased to see its sustained and increased growth.”

Peter Madsen, chief investment officer of the State School and Institutional Trust Fund Office, said the fund's portfolio has been stable in spite of market turmoil over the past year.

“As we continue to diversify, we are optimistic about the continued growth of the fund and the prospects for increased distributions long term," Madsen said.

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