Appropriators back consolidation of school reserve accounts into permanent land fund reserve to improve returns

Chairman Baer presented House Bill 293 to the committee as a cleanup and consolidation of several school‑related reserve accounts. The bill would repeal the School Foundation Program Reserve Account, transfer the account balance (cited in testimony as approximately $92 million) into the Common School Permanent Land Fund reserve account (the state’s 5x/7x spending‑policy account), and repeal related session‑law and statute provisions that currently describe the older account.

Witnesses and staff said the practical purpose is to aggregate small, illiquid accounts so the State Treasurer and Chief Investment Officer can invest larger pools under the 5x/7x spending policy, pursue longer‑duration investments and increase returns to support the school foundation program in the long term. Don Richards of the Legislative Service Office characterized the now‑small account as a legacy ‘‘checking’’ style account that never developed the dedicated revenue stream anticipated when it was created.

Committee members discussed overlap with a Senate bill addressing accounts; staff said the two bills do not conflict and either could pass independently. Members also asked about historical reasons for multiple accounts and whether consolidation would present risks. Staff and the sponsor said consolidation should allow more effective investment and improve expected returns, accelerating the ability to reach 5x and 7x funding targets.

Representative Haraldson moved to pass the bill, seconded by Representative Angelos. A roll‑call vote recorded six ayes and one excused and the committee passed House Bill 293. The chair instructed the state auditor to report on transfers and account balances for fiscal years 2026–27.