The Brookings Institute has recommended that US states Pennsylvania and Ohio establish Permanent Funds from their taxes from oil & gas fracking. This is similar to our proposal relating to the Goenchi Mati Permanent Fund.
Devashree Saha & Mark Muro in their report titled “Permanent trust funds: Funding economic change with fracking revenues” advance five elements of good fund governance and management that states should consider in the design and implementation of permanent trust funds:
- Establish an effective governance framework
- Define the fund’s revenue source, deposit, and withdrawal rules
- Design the investment strategy
- Seize the opportunity to invest fund earnings to economic transformation
- Formulate explicit disclosure and transparency standards