SANTA FE, N.M. (AP) — Public education is expected to get a financial boost in the coming year from New Mexico's two major sovereign wealth funds, based on investment returns and income from the oil sector.

The State Investment Council has estimated that New Mexico's Land Grant Permanent Fund and Severance Tax Permanent Fund are likely to pay out $963 million for the coming fiscal year, a $64 million increase from the fiscal year that started in July.

The majority of annual distributions from the two state trusts go directly toward public schools. A little over $200 million flows to the state'...