Governor Fallin, CLO Announce Record-Breaking Distributions for Education

Governor Mary Fallin and Secretary of the Commissioners of the Land Office Harry Birdwell announced earlier this week a record-setting year for the money provided by the CLO to K-12 schools, colleges and universities.


The agency is expecting to distribute a total of $124 million to schools over the course of fiscal year 2011, the largest annual distribution to schools in state history and over $10 million more than was distributed in FY 2010. As of now, the CLO has distributed $112 million to education, including $84.9 million to common education, and is expected to distribute another $12 million total by the end of the fiscal year in June.  


In addition, CLO officials report that all indications point to another record disbursement year in fiscal year 2012 if state oil and gas drilling activities continue at a strong pace. CLO distributions continue to climb, with education distributions reaching $82.6 million in FY 2009, $114.3 million in FY2010 and a projected total of at least $124 million in FY 2011.


“With the recession leaving Oklahoma with a $500 million budget shortfall, every dollar is important,” Fallin said. “We’re extremely pleased to be able to direct a record-setting amount of money from the CLO towards education, especially during these tough times. These dollars come without any mandates and will provide our schools and universities with another flexible source of funding to help deal with the budget cuts they are currently facing.”


Created at statehood, the CLO controls 1.3 million mineral acres, approximately 750,000 acres of land and a $1.8 billion trust fund.  Monies from oil and gas exploration and land leases on CLO-controlled property and dividends from investments made by the trust fund are distributed monthly by the CLO to state schools.


Under the state budget agreement reached last week, common education would receive a funding decrease of 4.1 percent and higher education would receive a funding decrease of 5.8 percent. Legislative approval of proposed education supplemental appropriations would put common education’s funding decrease at about 3.8 percent and higher education’s funding decrease at about 4.8 percent.


The CLO disbursements will further offset those funding reductions.

Treasurer Miller Appoints Investment Advisory Committee

Treasurer Ken Miller

State Treasurer Ken Miller has announced the appointment of a committee to advise him on investment of the state’s $5 billion investment portfolio. Miller said the goal of the five-member committee is to examine the state’s portfolio structure and provide recommendations to maximize investment returns given changing market conditions.

“With our macro environment transitioning from a recessionary to a recovering economy, the committee will complete a thorough review of the state’s current investment allocations and make suggestions on how best to restructure our portfolio to maximize the return on the taxpayer’s dollar,” Miller said.

Former State Treasurer Scott Meacham will chair the committee. Other members of the committee include: Bob Neville, Executive Vice President of Investments for BancFirst; Gordon Sellon, PhD, former Federal Reserve economist and professor of economics at Oklahoma City University; Robert Thomas, Chief Investment Officer for George Kaiser Family Foundation and James Wilbanks, PhD, Executive Director of the Oklahoma Teachers Retirement System.

In the current fiscal year, the office is projected to earn $92 million on its investments. Earnings for next fiscal year are estimated to be $96 million.

Miller said the committee held an organizational meeting recently in the treasurer’s office. Plans are for the panel to meet monthly for the next year.

“In this challenging investment climate where market returns are expected to be low and potentially volatile, I am confident this committee’s vast investment and economic experience will add significant value. I appreciate their service and look forward to working with them in the coming year,” Miller said.