The Alaska Mental Health Trust Authority is charged with the perpetual management and safeguarding of Trust assets for the benefit of current and future generations of beneficiaries. The Trust’s cash assets are invested and managed by the Alaska Permanent Fund Corporation and the Department of Revenue Treasury Division, both of which invest the Trust’s money in a high-quality mix of stocks, bonds and other investments to generate income. The Trust Land Office is responsible for managing non-cash assets, which include approximately one million acres of land and a portfolio of high-quality properties in Alaska, Washington, Utah and Texas. 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.
As of June 30, 2017, the Trust had $501,256,600 in various investments managed by APFC. Additionally, at the end of the fiscal year, the Trust had $43,429,082 in investments managed by the Department of Revenue Treasury Division.
The total amount available each year for trustees to allocate is a combination of the following:
- Fund payout (4.25 percent of the total cash asset value of the trust fund)
- Spendable income from land and non-cash assets
- Interest income from cash investments
- Any lapsed or unspent funds from the previous fiscal year
This funding system ensures a predictable and relatively constant cash flow from year to year.
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.
FY19 Anticipated Distribution:
|Prior Years Carried Forward||$3,042,000|
|Land Office Average Spendable Income||$4,974,000|
|Prior Years’ Total Distributable Funds|
Authority Grants: $9,895,500
Mental Health Trust Authority Authorized Receipts (grants to state departments): $10,838,400
Administrative Budget (Inclusive of Trust Authority and Land Office): $8,703,700