What are the Permanent University Fund and Available University Fund?
The Permanent University Fund (PUF) is a public endowment contributing to the support of certain universities and agencies in the A&M System and certain universities in the University of Texas System. The PUF was established in the Texas Constitution of 1876. Today, the PUF includes over 2.1 million acres in 19 West Texas counties. Mineral income from this land has accumulated over several decades and the PUF was valued at approximately $9.4 billion as of Aug. 31, 2005. All mineral income and all increases in the value of equity investments from PUF capital gains become and remain an inviolate part of the endowment. The PUF’s 2.1 million acres of West Texas land produce two streams of income. Mineral income remains forever part of the PUF endowment and cannot be expended, but surface income (primarily grazing and surface leasing) flows directly into the Available University Fund (AUF). In addition, financial investments held in the PUF are utilized to provide a payout stream into the A
