Dec. 14 -- BISMARCK -- The department that manages state lands and mineral rights in North Dakota has announced record monetary payouts to benefit education in the state.
Joseph Heringer, Trust Lands commissioner, said the Department of Trust Lands has laid out a historic $620 million in distributions for the 2025-2027 biennium, reflecting a significant increase in asset values.
"That ultimately goes to help education in the state, both at the K-through-12 level and at the university level," he told The Forum.
When North Dakota was granted statehood in 1889, the state was granted acreage from the federal government.
The Board of University and School Lands is charged by the state constitution with overseeing management of those lands and mineral rights, Heringer said.
The board and Trust Lands staff manage assets that include more than 700,000 surface acres, 2.6 million mineral acres and 13 permanent trusts, all to generate revenue.
Through that management, asset integrity has been preserved while driving growth, leading to a 17% biennial increase in overall distributions to fund beneficiaries.
"Basically, they're like endowments for the state," Heringer said.
The record growth is due to a combination of factors, he said, including $2 billion in oil and gas royalties generated over the last five years from nearly 10,000 wells, agricultural rents, easement revenues and a diversified $7.4 billion investment portfolio.
The Common Schools Trust Fund, with a value of $7 billion, makes up the vast majority of that portfolio.
In the current biennium, the Common Schools Trust Fund is at $500 million, distributed by the Department of Public Instruction to schools according to the state school funding formula.
In the 2025-2027 biennium, that amount rises to nearly $585 million.
"These funds will continue to ensure that education in our state remains strong, now and for generations to come," Heringer said.
Here's the breakdown of how nearly $620 million in Trust Lands funds will be distributed to beneficiaries over the next two years: