By VERNON KERRLos Alamos
What don’t Democrats understand about the word “Permanent”?
There is this $23 billion pot of money in New Mexico’s assets called the Land Grant Permanent Fund that was established in 1912 as a condition of statehood.
The fund is perpetuated from parcels that were set aside out of each section of land in the state with these parcels to earn revenue (leases and royalties) for the continuing maintenance of state government. This was to fund state government in perpetuity. The Permanent Fund is responsible for approximately 15 percent of the state operating budget. In other words, not from the New Mexico taxpayers – an estimated $1,250 per family.20
The Permanent Fund is not a “reserve” fund or a “rainy day” fund. It is special and specific and closely controlled by the State Investment Council. Because of careful management, New Mexico’s Permanent Fund is the 3rd largest of all the states. Five percent of the corpus of the permanent fund is taken annually to give to 20 specified beneficiaries (schools, hospitals, etc.).
By far the largest chunk is for public education, approximately 85 percent. This leaves 15 percent of the dividend to be divided according to the law amongst the 19 other recipients. The remaining 15 percent is invested under the guidance and management of the 11 member State Investment Council. This allows growth to maintain and increase the worth of the Permanent Fund.
Now, Democrats want to take an additional one percent out of the fund to pay for an expansion of the public education to include children from age 2 to prekindergarten, essentially leaving only babies at home. This additional 1 percent dividend (from 5 percent to 6 percent) is actually an increase of 20 percent of the current dividend taken from the permanent fund. If this occurs, certainly the fund would grow more slowly or potentially lose money. This proposed 1 percent will not be able to completely pay for this new public education proposal and as usual, taxpayers will pick up the tab.
Finally, if this raid on the Permanent Fund is successful, it will not be the last.
