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Investment Fund Structure (Distributions)

Land Grant Permanent Fund

Contributions: Created by leases of state-owned minerals and funded by royalties generated by those non-renewable natural resources.

Distributions: 5% of the 5-year rolling average value of the fund’s 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 less than 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 value of the fund’s assets as calculated at calendar-year-end.

Tobacco Settlement Permanent Fund

Contributions: The 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 companies’ annual tobacco payments received by 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 have gone 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: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 water projects statewide.