Louisiana Education Quality Trust Fund
|United States – Louisiana||US$ 1.3 Billion||Origin: Oil & Gas|
Transparency Rating: N/A
View Sovereign Fund Transaction Data
|Firm Investment Style: N/A
Entity Structure: Fund
Pop Est.: 4,601,893 – 2012 Louisiana
Wealth Per Capita Est.: $239.03
The Louisiana Education Quality Trust Fund (LEQTF) started in 1986 when the State of Louisiana took US$ 541 million from a settlement from the United States government over oil and gas revenues. The proceeds were put into this trust. The LEQTF was created in 1986 by an Act of the Louisiana Legislature and an amendment to the Louisiana Constitution passed by the citizens of Louisiana. Investment income generated by the fund is dedicated to the sole purpose of providing educational enrichment programs.
From this Permanent Fund, a separate Support Fund was created to receive and hold 75 percent of the earnings from investment income and royalty income and 25 percent of the earnings from net capital gains/losses. Income from royalties from FY 2011 was US$ 21.7 million from natural gas production on the Outer Continental Shelf in the Gulf of Mexico, subject to the 8(g) settlement with the federal government of the United States. The LEQTF receives funds through the Federal Outer Continental Shelf Lands Act and deposits them in what is known as the Permanent Fund.
This portion of the fund’s income is a direct result of natural gas prices and tends to fluctuate as production and processing rise and fall. It is important to note that once the market value of the Permanent Fund reaches US$ 2 billion, all investment income will be credited to the Support Fund, and recurring royalty income will revert to the state of Louisiana’s General Fund.
Historical Assets Under Management on Louisiana Education Quality Trust Fund
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