Investments in the Texas Permanent School Fund rose 9.44% in fiscal 2012 for a year-end value of $25.5 billion, the Texas Education Agency said last week.
The PSF provides triple-A enhancement for general obligation bonds issued by many Texas school districts.
Local districts have also received allocations from the fund for textbooks and other needs totaling $1.2 billion over the past two years.
The fund currently guarantees 2,634 bond issues with a par value of $56.3 billion.
The TEA report said 348 new school bond issues were covered by the fund in fiscal 2012, and 250 issues matured.
The Permanent School Fund, which was established in 1858 with a $2 million investment by the state, is the second-largest education endowment in the country, behind Harvard's.