Reinvesting some of the interest generated by Utah's trust lands permanent fund would, over time, give a better return on the money, says Rep. Dave Adams, R-Monticello.
In HB268, he proposes that 40 percent of the fund's interest, beginning this July, be plowed back into the account. That would reduce the amount of money going to the beneficiaries of the trust by approximately $1.5 million in the first year and a declining amount on subsequent years as the principal of the account grew. Over time, the return to the beneficiaries would be greater, Adams said.The permanent fund, which is the repository for money generated from sales and use of trust lands, distributes about $3 million to public and higher education and other specified beneficiaries each year.
The bill was passed out of the House Education Committee favorably.