FOR IMMEDIATE RELEASE
May 11, 2016                                                                                                                                                                     
Contact: Michael Fortney
303.910.3808

Bill that lifts investment restrictions for the Public Land Trust and will allow for greater returns to fund education in Colorado, passes legislature

Denver, CO—Today, SB16-035, a bill that sets up a public school fund investment board to manage Public Land Trust money, passed the legislature and will head to the Governor’s desk. Treasurer Stapleton has been working with bill sponsor Senators Mike Johnston and Jerry Sonnenberg to draft a bill that provides the State of Colorado a mechanism to potentially invest public school funds in higher returning investment vehicles, rather than being limited wholly to fixed income securities.

“This is a big win-win for Colorado classrooms, and our taxpayers,” Stapleton said. “SB-35 will increase our investment options which will put more money in Colorado classrooms, without increasing taxes. Doing this cautiously and smartly will enable us to begin to increase returns, without the burden of taking out-sized risks.”

This bill sets an investment advisory board consisting of a representative from the Land Trust, State Treasurer, and three investment professionals appointed by the Treasurer.

Additionally, the bill allows for the hiring of an outside asset manager in order for the board to have a professional investment adviser overseeing investment policy.

According to the State Land Board, the Permanent Fund earned $22.8 million averaging a 2.8 percent return. Other states such as Oklahoma, Idaho and Texas that have made these changes see an average return of 5-8 percent.

“We’ve taken, and will continue to take, a conservative investment approach. In a fund this large, two percent in supplementary earnings means real money for our schools. However, this is not about shooting for the moon,” concluded Treasurer Stapleton.

Treasurer Stapleton took office in January 2011.  Before being elected, he served as the chief financial officer and chief executive officer of various private and publicly-traded companies.

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