North Dakota land trusts to produce record distribution to schools, universities

The North Dakota agency responsible for managing state trusts announced Monday a record payout is expected during the next budget cycle. 

The Department of Trust Lands, responsible for managing the Common Schools Trust Fund and 12 other permanent trusts, will distribute $762 million in earnings for the 2027-2029 biennium. 

The payout will include more than $722 million from the Common Schools Trust Fund, which helps fund K-12 education. That’s about 24% higher than the contribution during the 2025-2027 budget cycle. 

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“These record distributions will provide crucial support for educational institutions and students in classrooms across our great state, from kindergarten to college,” Gov. Kelly Armstrong said in a statement. Armstrong chairs the Board of University and School Lands.

The Common Schools Trust Fund collects revenue from several sources including oil and gas royalties, surface property rents and the income derived from investing these funds. It was valued at $9.3 billion as of June 30.

The state constitution requires 10% of the five-year average value of the trust’s assets to be distributed to K-12 schools each biennium. The trust fund contributed nearly $585 million, or 24% of the state’s per-pupil funding responsibility, during the 2025-2027 biennium. 

The agency also manages a dozen other trusts that distribute funding each biennium. The 2027-2029 biennium’s distributions include $10.6 million for North Dakota State University and $8.4 million for the University of North Dakota, as well as payouts to other education institutions. 

The distributions will also include $3.9 million for the Youth Correctional Center, $2.5 million for the State Hospital and $1.2 million to the North Dakota Veterans Home. 

“These historic distributions reflect the Land Board’s commitment to responsible stewardship and ensuring North Dakota’s trust assets deliver lasting value,” said Joseph Heringer, land commissioner. “By carefully managing these resources, we are strengthening educational opportunities across the state and investing in a brighter future for generations of North Dakotans.”

The Legacy Fund, another state investment portfolio that is managed by a different agency, is expected to have a record $894 million distribution for 2027-29. The Retirement and Investment Office’s preliminary estimate provided to lawmakers in August is 30% higher than the last payout from the Legacy Fund. 

North Dakota Monitor reporter Jacob Orledge can be reached at [email protected].