Land Grant Permanent Fund
Contributions: Created by leases and royalties generated by non-renewable natural resource income from state lands.
Distributions: Currently 5% of the 5-year rolling average of fund assets as calculated at calendar year end.
Severance Tax Permanent Fund
Contributions: A small portion of the state’s annual taxes on oil, gas, minerals and other severable natural resources. Currently only 5% of the state’s severance taxes go to the STPF, while the majority is used to issue long and short term senior and supplemental bonds for capital projects.
Distributions: 4.7% of the 5-year rolling average of fund assets as calculated at calendar year end.
Tobacco Settlement Permanent Fund
Contributions: The Tobacco Settlement Permanent Fund (TSPF) was created in 2000 as part of the Master Settlement Agreement between New Mexico, other states and big tobacco companies. During its early years, the TSPF received approximately half of the annual tobacco payments to the state, or about $20 million per year, while the other half went toward health and tobacco cessation programs. However, since 2008, legislative priorities have resulted in nearly 100-percent of annual payments being appropriated, and minimal new funds going into the TSPF for investment.
The TSPF is considered part of the state’s reserve fund, and is not constitutionally protected from legislative appropriation.
Distributions: Currently the TSPF does not make annual distributions.
Water Trust Permanent Fund
Contributions: The WTPF was established with a $40 million appropriation in 2006 and a $15 million appropriation in 2007, but has not received any additional contributions.
Distributions: The WTPF distributes $4 million per year to the Water Trust Board to help fund critical water projects statewide.