The oil boom is generating big profits for energy companies and record tax revenue for Texas, and it’s created a billion-dollar windfall for the state’s giant Permanent University Fund.
But the extra gains won’t result in more money for colleges served by the $31.8 billion endowment, at least not in the near term.
That’s because annual payouts are limited to a set percentage of fund assets, usually around 5%. The fund’s aim is to provide a stable, inflation-adjusted payment while preserving the endowment’s value so it can support higher education for generations.
