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DNRC to Present $65.2 Million Check to the Office of Public Instruction for K-12 Education in Montana

(Largest check ever to be presented to Superintendent of Public Instruction)

The Montana Department of Natural Resources & Conservation (DNRC) will be presenting a $65.2 million dollar check to the Superintendent of Public Instruction at the December 18th State Board of Land Commissioners meeting. The check represents State Trust Land Management distributable revenues for the common schools during fiscal year 2006 and an increase of $8.1 million dollars over last year.

The distributable revenue is generated from activities of DNRCís six area offices and four separate bureaus under the Trust Land Management Division (TLMD) of DNRC, as well as the interest earned from the permanent public school trust fund.†† Those bureaus are: Agriculture & Grazing Management Bureau, Minerals Management Bureau, Real Estate Management Bureau, and the Forest Management Bureau.

Approximately 5.2 million surface acres and 6.2 million acres of mineral estate comprise the State School Trust Land portfolio in Montana. During a fiscal year, each bureau undertakes projects on these lands and estates that produce revenue for specific trust beneficiaries. These projects include, but are not limited to, timber harvesting, oil and gas leases, commercial development, administering cabin-site leases, agricultural and grazing leases, and the selling of recreational use licenses.

The TLMD administers and manages the state trust surface and mineral resources for the benefit of the common schools and the other endowed institutions in Montana, under the direction of the State Board of Land Commissioners. DNRC manages State School Trust Lands in order to produce and maintain revenue for the trust beneficiaries and to address other public interests in Trust Lands such as access and land stewardship.

The beneficiaries of the State School Trust are: Common Schools (K-12), the University of Montana, Montana State UniversityóMorrill Grant, Montana State UniversityóSecond Grant, State Reform School (Pine Hills), Public Buildings, Montana Tech, State Normal School, School for the Deaf & Blind, and the Veterans Home.

"This is the largest amount weíve ever provided to education in Montana,î stated TLMD Administrator, Tom Schultz.†† ìThese revenues represent nearly 11 percent of the stateís share of school funding, which equates to about $450 per K-12 student per year.† These revenues are the first piece of school funding that the Legislature allocates for base aide.† Without these revenues, school funding would be decreased by this amount, drawn from other state programs, or made up with increased taxes paid by Montanans.î†

Oil and gas revenues for common schools doubled over last fiscal year, totaling $37.4 million.† Increases in leasing, production and price all contributed to the increased revenue.† Rentals and bonuses increased 154 percent, while oil production and price increased by 45 percent and 28 percent, respectively.† That, combined with $4.6 million in mineral revenue from coal and other minerals, generated revenue from all mineral production on common schools trust land totaling $42.0 million.† This is an increase of $18.9 million over last fiscal year.† "The boom that is occurring in eastern Montana is of great benefit to the trust and education in Montana, as is obvious from the increase over last year," Schultz explained.

DNRC Director Mary Sexton noted, "I am pleased that DNRC continues to increase the stream of funding that supports education while attending to public interests associated with Trust Lands."

In addition to the standard trust fund dollar allocation, DNRC will be presenting an additional check for the amount of $4.64 million for the State Technology and Deprecation Fund to the Superintendent of Public Instruction.†† The State Technology and Depreciation Fund, per MCA 20-9-533 states that any amount of money produced from the sale of over 18-million board feet of state timber annually will go towards this fund.† The fund is used solely for the purchase, rental, repair and maintenance of technological equipment such as computers and computer network access.†

According to Schultz, DNRC will continue to manage the resources to produce revenues and benefits for the future of not only education but for the people of Montana.† More information regarding the DNRC Trust Land Management Division can be found at http://www.dnrc.mt.gov/trust/

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