“The majority of UT System’s endowment is separated into two funds — the Permanent University Fund [PUF] and the Long Term Fund. The remaining funds are divided into the Permanent Health Fund, the General Endowment Fund and Separately Invested Funds. The revenue generated from selling the land’s oil and gas flows directly into the Permanent University Fund and is then distributed to UT and A&M institutions across the state at a rate set by the UT System Board of Regents. Historically, 5 percent of the PUF is distributed to these universities each year. The Long Term Fund, on the other hand, is specific to the UT system and consists of 13,600 privately-raised endowments established by donors.
The Texas Constitution actually stipulates how the Permanent University Fund is spent. It can be used for relieving debts from capital or construction projects at UT or A&M institutions, as operational funding for UT Austin, A&M College Station, A&M Prairie View or UT system expenses and initiatives.
Donors determine exactly how the Long Term Fund is spent.”
Not many endowments are backed by oil and gas revenues.
Post by Marcelino Pantoja