The Appropriations Committee voted to advance Senate File 70, a measure that would move selected state funds — including distributions tied to the Permanent Mineral Trust Fund and the common-school fund — toward an endowment-style spending model that uses a multi-year averaging method to stabilize annual distributions.

Proponents told the committee the change would reduce year-to-year volatility in available distributions and give recipient boards and grantees more predictable funding. Patrick Fleming and other treasury officials described the proposal as shifting from a quasi‑endowment model to a full endowment approach, with a multi‑year geometric or rolling average used to calculate the annual spend percentage (for example, a 3%–4% spending policy derived from a five‑year averaging window).

Sarah Sheen, deputy director for State Parks Cultural Resources, said her board supports the change because it would “level out the interest earnings that we receive in the Cultural Trust Fund” and make grant planning more predictable. Treasury staff and witnesses said the measure does not create new taxpayer obligations; it adjusts how investment earnings are smoothed and spent. Committee members asked whether removing an “inviolate” designation could increase risk; treasury staff said risk would arise only if the legislature or board changed the spending policy to exceed anticipated earnings.

No fiscal impact to the general fund was presented in the hearing. The committee voted 5-0 to pass the bill to the Senate floor.

Votes at a glance

- Committee vote on Senate File 70 final: Senators Driscoll, Garou, Larson, Smith and Chairman Salazar — Aye (5 ayes).