General Information

Financial Review

In fiscal year 2012-13, school lands generated revenues of $10.6 million for CalSTRS, an increase of 52 percent from the previous year. Net revenue to CalSTRS from solid mineral leases increased substantially from $328,756 the previous year to $3.5 million, over a 900 percent increase from the previous year. Oil and gas lease revenue decreased to $1.98 million.

As shown in the table below, the revenue distribution from geothermal leases contributed 46 percent of revenue (versus 63 percent the previous year). Solid minerals and surface rentals combined to contribute 36 percent of revenue (versus 8 percent the previous year). Oil and gas contributed 19 percent this year (versus 30 the previous year).

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Expenses for the program have averaged $1.22 million per year over the last 10 years and in fiscal year 2012-13, the expenses for the program were $1.23 million. For every $1 spent in the latest fiscal year, the program generated $8.75 in revenue. Program expenses as a percentage of revenue decreased from 17.2 percent last year to 11.4 percent this fiscal year.

Net revenue to CalSTRS was up substantially this year, increasing 66 percent to $9.6 million due to the large increase in revenue from solid minerals from the previous year. As of June 30, 2013, the School Land Bank Fund had a balance of $1.25 million. The balance reflects a $59 million loan to the California General Fund in 2008. The loan, including interest, is due to be repaid on June 30, 2016. Interest on the loan accrues at a rate set by the Pooled Money Investment Board. The annual yield for fiscal year 2012-13 was 0.307 percent and accrued $4,886.29 in earned interest.

Commands