Wyoming Creates Staggering $500M Higher Ed Endowment Fund

The scenario: You are a state legislator and have learned high oil and gas prices will provide the state coffers with at least enough surplus revenue over the next five years to have approximately $1,000 per resident. What do you do with the money?

Elected officials in Wyoming have chosen to invest $500 million into the state’s future through academic scholarships and endowed chairs at the state’s universities and community colleges.

Once the new endowment fund is fully capitalized, Wyoming high school graduates will receive a scholarship equal to tuition and fees at the University of Wyoming (UW) or any state community college. Signed into law by Gov. Dave Freudenthal on March 3, the bill also authorizes $105 million to be used for endowed chairs and faculty positions.

The first part of the act authorizes $400 million for the Hathaway Student Scholarship Endowment Account, which is named after former Gov. Stan Hathaway to recognize his contributions to education in Wyoming. Funding will come from the Budget Reserve Account and it will take at least five years to build the trust to $400 million, according to the Wyoming Education Association (WEA).

Based on Louisiana’s Taylor Plan, scholarships will be available to Wyoming students having a 2.5 GPA or higher, a minimum score of 19 on the ACT test, and some advanced classes in their core curriculum. Details will be worked out over the coming months, according to WEA.

The second part of the act authorizes $105 million to attract and retain highly respected and qualified educators for endowed chairs and faculty for research and instruction at UW and the state’s community colleges. The act leaves the academic institutions great latitude in deciding the disciplines and uses for the funding. Community colleges will receive one-third of the funding, while two-thirds will be allocated to UW.

The Higher Education Endowments Act (SF122) may be viewed the Wyoming legislature at: http://legisweb.state.wy.us/2005/Engross/sf0122.pdf

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