Ducey: AZ trust fund ends the month above $4 billion

| May 15 2013

Download the Q2 2013 edition of Inside the Vault.
As the weather continues to warm up, so are the markets. These gains have proven valuable to our Permanent State Land Endowment Trust Fund, which helps fund K-12 education.

The February closing market value for the trust fund was $4,010,564,397, marking the first time in state history that it has ended a month above the $4 billion mark. It took 88.5 years for the endowment to reach its first $1 billion in August 2000, a little more than 6.5 years to get to $2 billion in March 2006, and then a little more than 4.5 years to reach the $3 billion mark in November 2010. It only took 2.25 years to cross the $4 billion threshold. The unrealized gains for the fund are also at an all-time high of approximately $1.34 billion.

Our endowment is something that all Arizonan’s can be proud of. While other western states have squandered theirs by raiding the funds to pay for other government services, Arizona has protected and grown it significantly to the benefit of public education.

Today state trust land (the light blue shaded areas on the map) makes up approximately 12 percent of all land in Arizona. As that land is sold over the course of the next several decades we’ll continue to see the trust grow to provide more resources to education.

CASH FLOW – JOBS

Arizona’s operating balance closed the month of April at $2.46 billion; $397 million more than last year. In addition to the operating cash, we also have $453 million in the “Rainy Day Fund,” which earned $347,000 in interest for the month. Total cash available at the end of April exceeded $2.91 billion.

As Treasurer you will not hear me use the word “surplus” because we have too much debt and too many obligations on our balance sheet that need to be addressed. Arizona’s cash position is positive, but our economy remains sluggish.

We continue to add jobs across the state just at a much slower rate than everyone is hoping for. As the policies from Washington D.C. stifle private-sector growth we need to do all we can to let employers know that Arizona is the best state in the country to open, grow and run a business.

If you would like to know Arizona’s daily cash balance visit the Treasurer’s Office web site, or if you want more frequent updates and commentary you can follow me on Facebook or onTwitter.

Thank you for your ongoing support.

Sincerely,
Doug Ducey

Doug Ducey

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