The Kevin P. Reilly Sr. Louisiana Education Quality Trust Fund

The fund's corpus derives from a constitutionally dedicated share of federal revenues generated by Outer Continental Shelf oil and gas production. These revenues — predominantly royalties — flow into the trust by operation of the Louisiana Constitution of 1974 as amended in 1986. No state general fund appropriations or tax revenues feed the trust.

The Louisiana State Treasurer serves as the fund's chief investment officer by law. Day-to-day portfolio management is handled by the Louisiana Department of the Treasury's investment team, led by the department's CIO and the Assistant State Treasurer for investments. The State Bond Commission has an oversight role.

All net investment income is distributed annually. The Louisiana Board of Elementary and Secondary Education (BESE) receives 50% for K-12 programs; the Louisiana Board of Regents receives the other 50% for higher education. The corpus — known as the permanent fund — may not be spent.

No. The governing statutes and the constitutional amendment restrict investments to fixed-income securities, primarily obligations of the U.S. government and its agencies, high-grade corporate bonds, and other approved short-term instruments. The fund does not hold public or private equities, real property, or alternative assets.

Any change to the fund's constitutional mandate — such as altering the spending rule or the asset-class restrictions — requires a two-thirds vote of the Louisiana Legislature and approval by statewide ballot. No such proposals have gained sufficient legislative traction in recent sessions.