The Trust employs the expertise of several organizations to manage its assets. The Alaska Permanent Fund Corporation and the Department of Revenue Treasury Division manage cash assets and the Trust Land Office, manages the land and other non-cash assets. Revenue-generating uses of Trust land include land leasing and sales; commercial timber sales; mineral exploration and production; coal, oil and gas exploration and development; and sand, gravel and rock sales.
Trustees approve operating and capital budgets in two-year cycles, with annual recommendations to the governor and Legislature. While trustees are authorized to spend Trust income without legislative appropriation, they are required by statute to recommend to the governor and Legislature operating and capital budgets for state general funds to support the Comprehensive Integrated Mental Health Program. The governor must then propose and the Legislature must pass a separate bill, known as the Mental Health Budget Bill, which includes budgets for Trust funds and state general funds.
The majority of the Trust’s annual operating and capital budgets is spent in the following areas:
- Trust Focus Areas: based on recommendations from the focus area work groups
- Programs: initiated by advisory boards (these expenditures are part of the Mental Health Budget Bill and must be approved by the Legislature)
- Grants: administered directly by the Trust
Mental Health Budget Bill includes the following components:
- General Fund/Mental Health Base: Amount is established by identifying the mental health services funded within the state’s general fund budget. These funds are designated as general fund/mental health dollars. The final budget from the previous fiscal year establishes the GF/MH base.
- Adjustments to the Base: Trustees may suggest adjustments to the base each year.
- General Fund/Mental Health Increments: When trustees identify better and more cost efficient ways of providing on-going services or solutions for unmet needs, they make recommendations in the form of GF/MH increments.
- Capital Budget: The separate appropriations bill includes that portion of the state’s capital budget that funds mental health projects. This often includes funds from the Alaska Housing Finance Corporation to provide housing for beneficiaries as part of the Comprehensive Integrated Mental Health Program.
- Mental Health Trust Authority Authorized Receipts (MHTAAR): Trustees authorize state agencies to spend Trust funds for specific operating and capital projects. These state agencies must have legislative approval to receive and expend Trust funds.