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22LSO-0379
2022
STATE OF WYOMING
22LSO-0379
Introduced
2.0
House Joint Resolution NO. HJ0006
Common school account-investments and distributions.
Sponsored by: Select Committee on Capital Financing & Investments
A JOINT RESOLUTION
for
A JOINT RESOLUTION proposing to amend the Wyoming Constitution to modify and modernize the common school account within the permanent land fund; requiring that all common school account earnings be transferred to a separate earnings fund; specifying actions and uses of the common school account's earnings; and requiring that the legislature provide a means for making whole any investment losses to the common school account.
BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF WYOMING,
two-thirds of all the members of the two houses, voting separately, concurring therein:
Section 1.
The following proposal to amend Article 7, Sections 2, 6, 7, 8 and 9 and Article 18, Section 6 of the Wyoming Constitution is proposed for submission to the electors of the State of Wyoming at the next general election for approval or rejection to become valid as a part of the Constitution if ratified by a majority of the electors at the election:
Article 7, Section 2.
School revenues.
The following are declared to be perpetual funds for school purposes, of which the
annual income
earnings
only can be appropriated, to wit: Such per centum as has been or may hereafter be granted by congress on the sale of lands in this state; all moneys arising from the sale or lease of sections number sixteen and thirty-six in each township in the state, and the lands selected or that may be selected in lieu thereof; the proceeds of all lands that have been or may hereafter be granted to this state, where by the terms and conditions of the grant, the same are not to be otherwise appropriated; the net proceeds of lands and other property
and effects that may come to the state by escheat or forfeiture, or from unclaimed dividends or distributive shares of the estates of deceased persons; all moneys, stocks, bonds, lands and other property now belonging to the common school funds. Provided, that the rents for the ordinary use of said lands shall be applied to the support of public schools and, when authorized by general law, not to exceed thirty-three and one-third (33 1/3) per centum of oil, gas, coal, or other mineral royalties arising from the lease of any said school lands may be so applied.
Article 7, Section 6.
State to keep school funds; investment.
(a)
All funds belonging to the state for public school purposes, the
interest and income
earnings
of which only are to be used, shall be deemed trust funds in the care of the state, which shall keep them for the exclusive benefit of the public schools. The legislature shall provide by law for the investment of such trust funds
, subject to the following:
(i)
Earnings, which may include both realized and unrealized gains as prescribed by the legislature, shall be deposited or credited by the state treasurer in a separate earnings fund on not less than an annual basis;
(ii)
Earnings in the separate earnings fund may be invested or distributed as required by law;
(iii)
The legislature shall prescribe by law the manner, means and timing for supplying losses to the perpetual funds belonging to the state for public school purposes
.
Article 7, Section 7.
Application of school funds.
The
income
earnings
arising from the funds mentioned in the preceding section, together with all the rents of the unsold school lands and such other means as the legislature may provide, shall be exclusively applied to the support of free schools in every county in the state.
Article 7, Section 8.
Distribution of school funds.
Provision shall be made by general law for the equitable allocation of
such income
earnings
among all school districts in the state.
But no appropriation shall be made from said fund to any district for the year in which a school has not been maintained for at least three (3) months; nor shall any portion of any public school fund ever be used to support or assist any private school, or any school, academy, seminary, college or other institution of learning controlled by any church or sectarian organization or religious denomination whatsoever.
Article 7, Section 9.
Taxation for schools.
The legislature shall make such further provision by taxation or otherwise, as with the
income
earnings
arising from the general school fund will create and maintain a thorough and efficient system of public schools, adequate to the proper instruction of all youth of the state, between the ages of six and twenty-one years, free of charge; and in view of such provision so made, the legislature shall require that every child of sufficient physical and mental ability shall attend a public school during the period between six and eighteen
years for a time equivalent to three years, unless educated by other means.
Article 18, Section 6.
Disposition of unexpended earnings of perpetual school fund.
If any portion of the
interest or income
earnings
of the perpetual school fund be not expended during any year, said portion shall be
retained in the separate earnings fund created by article 7, section 6(a)(i) of this constitution or
added to and become a part of the
said
perpetual
school fund
, as provided by law
.
Section 2.
That the Secretary of State shall endorse the following statement on the proposed amendment:
When Wyoming joined the Union in 1890, the federal government granted certain lands to the state for public-school purposes. The proceeds from the sale and rental of those lands constitute a perpetual school fund (the Common School Account within the Permanent Land Fund), which is one of Wyoming's permanent funds that holds public money for the benefit of
current and future generations. Currently, the interest and income from that perpetual fund must be used for the exclusive benefit of the public schools in Wyoming. The Constitution does not currently specify the use or disposition of gains, including those from investments.
This amendment would clarify the inviolate nature of the perpetual school fund by specifying that decreases to the perpetual fund's value caused by investment losses must be made whole. The Legislature would be required to adopt laws to provide for the means and timing for doing so. This amendment would also clarify that all earnings—and not just income and interest—must be deposited in a separate fund for expenditure for the exclusive benefit of the public schools in Wyoming. Any earnings that are unspent during any year must be retained in the separate earnings fund or added to the perpetual school fund as provided by law.
(END)
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HJ0006