Fiscal Year 2021 Annual Report 37
The PUF Explained
U N D E R S T A N D I N G
Established in the Texas Constitution of 1876 through the appropriation of land.
PERMANENT UNIVERSITY FUND
CONST I TUT I ON S T A T E O F T E X A S
UTSYSTEM.EDU/PUF
A constitutional permanent endowment that supports excellence in the The University of Texas and Texas A&M University Systems.
KEY FACTS CONSTITUTION GIVESMANAGEMENT TO UT SYSTEM BOARD;
THE UN I VERS I TY OF T EXAS SYST EM
GROWS FROMOIL AND GAS PRODUCTION AND INVESTMENT INCOME;
SUPPORTS CONSTRUCTION AND CAPITAL EXPENSES AT INSTITUTIONS OF UT AND TAMU SYSTEMS; CORPUS IS NOT SPENT EXCEPT FOR EXPENSES OF MANAGING THE LAND AND THE INVESTMENT ASSETS; CONSTITUTION DOES NOT PERMIT UT SYSTEMTO USE AUF FOR OPERATIONAL EXPENSES AT INSTITUTIONS OTHER THAN UT AUSTIN;
CONSTITUTIONAL USES OF AUF:
Support and maintenance of UT System Administration
Support and maintenance of UT Austin
Payment of principal and
interest on PUF bonds
2021 VALUE OF ~$32 BILLION
AUF
T EXAS A&M UN I VERS I TY SYST EM
The Available University Fund is PUF surface income plus an annual distribution from the total return on PUF investments, constitutionally allocated 2/3 to UT System and 1/3 to Texas A&M University System.
The Texas A&M University System has similar constitutional restrictions on use of AUF. Some Texas A&M institutions are not eligible for PUF bonds.
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