Proposed Amendment to the Constitution of the State of Idaho:
Section 3, Article IX
Meaning and Purpose of Proposed Amendment:
Adoption of the proposed amendment would:
Change the name of the Public School Fund to the Public School Permanent Endowment Fund;
Provide that the earnings of that fund be deposited into the Public School Earnings Reserve Fund and distributed for the maintenance of the schools and among the counties and school districts of the state;
Require that no part of the Public School Permanent Endowment Fund principal be transferred, used or appropriated to any other fund;
Prohibit legislative appropriations from these funds, except to appropriate moneys from the Public School Earnings Reserve Fund to pay for administrative costs incurred in managing the assets of the public school endowment including, but not limited to, real property and monetary assets;
Provide that the state treasurer is the custodian of these funds; and
Require the state to repay losses, as they are defined and prescribed by law, of the Public School Permanent Endowment Fund, but not losses on moneys allocated from the Public School Earnings Reserve Fund.
Effect of Adoption:
The name of the Public School Fund would be changed. The earnings of that fund would be deposited into the Public School Earnings Reserve Fund and distributed as required. The principal of the Public School Permanent Endowment Fund would be protected. The principal in that fund could never be transferred to another fund. The state legislature would be prohibited from appropriating money from the Public School Permanent Endowment Fund and the Public School Earnings Reserve Fund. However, the legislature would have the authority to appropriate money from the Public School Earnings Reserve Fund to pay for the administrative costs incurred in managing the fiscal and real property assets of the public school endowment. The state treasurer continues as the custodian of the described funds. The state would continue to be required to repay losses incurred by the Public School Permanent Endowment Fund, but not losses on moneys allocated from the Public School Earnings Reserve Fund.
Section 11, Article IX
Meaning and Purpose of Proposed Amendment:
To provide that investment of permanent endowment funds may be made in investments in which a trustee is authorized to invest pursuant to state law.
Effect of Adoption:
The state would be allowed to invest permanent endowment funds in a broad range of investments as a trustee normally would be allowed to invest the moneys pursuant to state law.