The state-run public endowment known as the Permanent School Fund has reached a record-high value in 2014, making it the largest educational endowment in the country.

Funded by proceeds from the sale of sulfur and water royalties, oil, gas, lease rentals and other sources, the endowment has grown from its initial $2 million investment in 1854 to approximately $37.7 billion in market value as of June 30.

“The Texas oil and gas boom isn’t just fueling the nation toward energy independence, it is earning hundreds of millions of dollars a year for public education,” Texas Land Commissioner Jerry Patterson said.

Approximately $30.6 billion of the fund is managed by the State Board of Education and $7.1 billion by the School Land Board. Day-to-day oversight of the fund is handled by staff at the Texas Education Agency and the General Land Office. A portion of the fund is allocated every year to help purchase instructional materials and pay a portion of education costs in Texas school districts — with more than $23 billion distributed to schools since 1960.

“The true beneficiaries of these sound investments are the schoolchildren across our state,” said Commissioner of Education Michael Williams. “Through effective management by the State Board of Education, General Land Office and TEA, the Permanent School Fund continues to grow.”

— This story has been edited to remove an error about funding recipients from the Permanent School Fund.