Many Americans know that there are 21 Sovereign Wealth Funds in 20 US states, and the vast majority of states that have a local Sovereign Wealth Fund are primarily Republican, and they rely on those funds to fund their educational systems and local projects.
In a report published by the American magazine ” National Interest “, the writer Richard Carroll believes that owning these funds explains the ability of states to reduce or eliminate taxes completely, and he reviews the following 5 most important local sovereign wealth funds in the United States: Read also To face China’s competition… Cecilia Rouss: America must invest heavily to remain the largest global economy The dollar climbs to new highs amid a bet on an American recovery How does Biden’s trillions help the global economy? America begins again to revive production of rare metals in the face of China
Alaska Perpetual Fund
The Alaska Permanent Fund is the largest and most famous sovereign wealth fund in the United States, and is managed by the Alaska Permanent Fund Corporation, and was established in 1976 by Alaska Governor Jay Hammond, and oversaw the management of the US Treasury Department of Revenue from February 1976 until April 1980 .
In April 1980, the Alaska Legislature established the Alaska Fund Corporation to manage this fund, which is divided into two sub-funds: the first is a non-spendable fund that relies on the allocation of funds on an annual basis to maintain its value in the face of high inflation.
The value of the funds allocated in the fund increased from $734,000 in 1977 to $77.8 billion in April 2021. The per capita share in the fund amounted to $1,600 in 2018, $1,606 in 2019, and $992 in 2020, and was disbursed on July 1 July 2020 instead of October due to the COVID-19 crisis, dividends are distributed to all eligible Alaskans, regardless of age, on an annual basis.
On October 3, 2019, the Alaska Perpetual Fund Foundation announced the creation of the Alaska Future Fund, which was capitalized with $100 million from the Alaska Perpetual Fund Foundation’s profit reserve, and Barings (one of the world’s leading financial services companies) was selected to lead the investments. Alaska Future Fund.
The Alaska Future Fund’s founding statement said it aims to support private funds, businesses, and projects in Alaska.
Texas School Permanent Fund
Established in Texas in 1854 by an act of the state legislature, the Texas Permanent School Fund is the world’s first sovereign wealth fund, with the purpose of financing the state’s public school system.
This fund was allocated two million dollars from the US federal government in exchange for the Texas government’s assignment of its claims to the lands that now belong to the states of New Mexico, Colorado and Oklahoma. As of August 31, 2020, the fund has reached $46.7 billion, and it ranks 23rd in the Sovereign Wealth Fund Institute index.
Permanent University Trust (Texas)
The Texas Permanent University Trust was established by the Texas Legislature in 1876, and it was funded by land grants (endowments) authorized by the state legislature. On May 31, 2020, the fund was valued at $36.2 billion, and the fund’s profits go to the Texas A&M University System and the University of Texas System.
Prior to 1923, the Permanent University Fund was underfunded, but the situation changed in May 1923 when the first oil well on the Reagan County Permanent University Fund’s land became a major source of income for the Fund, and the Permanent University Fund has since become among the best Funded education in the United States.
Unlike the Texas Permanent Fund, the University’s Permanent Fund Charter prohibits the sale of any land listed in its charter, and is ranked 24th in the Sovereign Wealth Institute Index.
New Mexico State Board Mutual Funds
After New Mexico’s accession to the union, the “Permanent Land Grant Trust” was established by the Ferguson Act of 1893, and the initial land grant of the Trust was from public lands granted to New Mexico in 1893.
The New Mexico Board of Investment’s permanent funds totaled $30 billion as of 2020, with 75% of the money going to fund the New Mexico school system, and the rest of the money going to other state obligations. The fund ranked 31st in the Sovereign Wealth Fund Institute’s Index.
Wyoming Minerals Perpetual Trust
The fund was established by the Wyoming legislature in 1974, and it is financed through a portion of severance taxes. The severance tax was initially set at 2% and was maintained at that level from 1975 through 1988.
In 1988, the tax was reduced to 1.5% with 0.05% transferred to the state account, the tax amount was raised to 2.5% in 2005, and in 2016 1% of the fund’s revenue was transferred to the Wyoming operating budget to remedy the shortfall in state government operations.
The Peterson Institute for International Economics considered the Permanent Minerals Trust of Wyoming to be among the most transparent sovereign wealth funds in the world, and the value of the funds allocated to the Fund amounted to $7.96 billion as of June 30, 2020, at the present time, the Wyoming Permanent Minerals Trust is ranked 47 in the Sovereign Wealth Institute Index.