The permanent school fund is derived from which sources?

• A. From the general state taxes
• B. From the sale and lease of school lands and from other sources
• C. From the federal grants only
• D. From local school taxes

Answer: (B)

The permanent school fund is a state trust designed to provide ongoing support for public education. Its principal comes from the sale and lease of school lands, which created the capital for the fund, and from other authorized sources. Those “other sources” include gifts, bequests, royalties, investment earnings, and similar revenues that the constitution or laws allow to be added to the fund. The goal is to preserve the principal while using the income of the fund to fund schools, so the fund’s future remains secure. This means it isn’t funded directly from general state taxes, federal grants, or local school taxes, though those can support education in other ways.