Models and Best Practices: State & Local Investments

State & Local Investments

Alaska Permanent Fund Corporation

As a result of a 1976 voter initiative, the state of Alaska invests a minimum of 25% of oil and mineral royalty payments in a trust fund, with residents receiving an annual payment from the fund. With the fund's market value totaling more than $37 billion, annual dividends over the past ten years have ranged from $900 to $1,900 per person. Payments are made to every man, woman, and child — providing a significant support to family income. Read more about Alaska Permanent Fund Corporation...

Bank of North Dakota

Currently the only state-owned bank in the United States, the Bank of North Dakota provides an example of state promotion of economic development through the provision of subordinated financing. Opened in 1919 with $2 million in capital, today, the Bank operates with more than $270 million. In partnership with over 100 other North Dakota financial institutions, the Bank continues to meet its mission to promote the development of agriculture, commerce and industry in North Dakota. Read more about Bank of North Dakota...

BioAdvance

BioAdvance was established in 2002 with a grant of $33.8 million from tobacco settlement money to use as seed money to finance venture investments in the life sciences industry in southern Pennsylvania. As one of three funds statewide, it is part of a larger effort, which involved dedicating 19 percent or $2 billion worth of the state's tobacco settlement money to develop biotechnology and related industry. Read more about BioAdvance...

New York City Comptroller, "Economically targeted investments"

In 2003, the New York City Comptroller's office made new economically-targeted investments (ETI) or financial commitments of city worker pensions totaling $234.5 million and has increased its investments since that period.  Between 2003 and the end of 2007, the city has invested and/or committed $397 million for more than 9,900 units of affordable renting housing; $283 million in the AFL-CIO's Housing and Investment Trust; and $75 million in the Community Preservation Corporation's revolving loan fund, which is actively financing 100 commercial properties and 8,000 units of affordable housing in low and moderate income New York City communities.

Pacific Community Ventures

Pacific Community Ventures (PCV) is a community development venture capital firm whose largest investor is CalPERS, the state employee pension fund. CalPERS' investment has helped bring capital to low-income communities. For instance, PCV invested $400,000 in Niman Ranch, an Oakland-based natural meat product distributor that employs 110 workers in a low-income neighborhood, with wages averaging $14 an hour and annual sales in excess of $50 million. Read more about Pacific Community Ventures...

Vermont Sustainable Jobs Fund

The Vermont Sustainable Jobs Fund (VSJF) was created by the Vermont Legislature to identify and fund market driven solutions to pressing economic, social, and environmental issues. Since 1997, the VSJF has made grants of over $2.7 million to 150 recipients, helping to leverage $11.8 million, benefiting over 8,800 businesses, and creating at least 800 jobs during the implementation of those projects. Read more about Vermont Sustainable Jobs Fund...

Washington State Investment Board, "Economically targeted investments"

In March 2003, the Washington State Investment Board adopted a new policy requiring annual reports of the pension funds in-state investments. In January 2004, the pension board reinforced this action by reaching a memorandum of understanding to coordinate efforts to promote in-state, high-tech business with the Washington Technology Center. According to their 2004 report, the pension fund currently invests $1.3 billion in in-state companies. Read more about Washington State Investment Board, "Economically targeted investments"...

State & Local Investments

Alaska Permanent Fund Corporation

As a result of a 1976 voter initiative, the state of Alaska invests a minimum of 25% of oil and mineral royalty payments in a trust fund, with residents receiving an annual payment from the fund. With the fund's market value totaling more than $37 billion, annual dividends over the past ten years have ranged from $900 to $1,900 per person. Payments are made to every man, woman, and child — providing a significant support to family income. Read more about Alaska Permanent Fund Corporation...

Bank of North Dakota

Currently the only state-owned bank in the United States, the Bank of North Dakota provides an example of state promotion of economic development through the provision of subordinated financing. Opened in 1919 with $2 million in capital, today, the Bank operates with more than $270 million. In partnership with over 100 other North Dakota financial institutions, the Bank continues to meet its mission to promote the development of agriculture, commerce and industry in North Dakota. Read more about Bank of North Dakota...

BioAdvance

BioAdvance was established in 2002 with a grant of $33.8 million from tobacco settlement money to use as seed money to finance venture investments in the life sciences industry in southern Pennsylvania. As one of three funds statewide, it is part of a larger effort, which involved dedicating 19 percent or $2 billion worth of the state's tobacco settlement money to develop biotechnology and related industry. Read more about BioAdvance...

New York City Comptroller, "Economically targeted investments"

In 2003, the New York City Comptroller's office made new economically-targeted investments (ETI) or financial commitments of city worker pensions totaling $234.5 million and has increased its investments since that period.  Between 2003 and the end of 2007, the city has invested and/or committed $397 million for more than 9,900 units of affordable renting housing; $283 million in the AFL-CIO's Housing and Investment Trust; and $75 million in the Community Preservation Corporation's revolving loan fund, which is actively financing 100 commercial properties and 8,000 units of affordable housing in low and moderate income New York City communities.

Pacific Community Ventures

Pacific Community Ventures (PCV) is a community development venture capital firm whose largest investor is CalPERS, the state employee pension fund. CalPERS' investment has helped bring capital to low-income communities. For instance, PCV invested $400,000 in Niman Ranch, an Oakland-based natural meat product distributor that employs 110 workers in a low-income neighborhood, with wages averaging $14 an hour and annual sales in excess of $50 million. Read more about Pacific Community Ventures...

Vermont Sustainable Jobs Fund

The Vermont Sustainable Jobs Fund (VSJF) was created by the Vermont Legislature to identify and fund market driven solutions to pressing economic, social, and environmental issues. Since 1997, the VSJF has made grants of over $2.7 million to 150 recipients, helping to leverage $11.8 million, benefiting over 8,800 businesses, and creating at least 800 jobs during the implementation of those projects. Read more about Vermont Sustainable Jobs Fund...

Washington State Investment Board, "Economically targeted investments"

In March 2003, the Washington State Investment Board adopted a new policy requiring annual reports of the pension funds in-state investments. In January 2004, the pension board reinforced this action by reaching a memorandum of understanding to coordinate efforts to promote in-state, high-tech business with the Washington Technology Center. According to their 2004 report, the pension fund currently invests $1.3 billion in in-state companies. Read more about Washington State Investment Board, "Economically targeted investments"...