This is expected to produce a payout of about $830 million each year.
The funding is used to pay for instructional materials and general education expenses for the state's public school students. The board also made slight adjustments to its long term strategic asset allocation plan for the PSF. The new plan calls for reducing the fund's investments in equities from 50 percent to 46 percent.
It will increase investments in fixed income assets from 15 percent to 17 percent while alternative investments will increase from 35 percent to 37 percent of the fund's holdings.
The $25 billion PSF is the second largest educational endowment in the country, behind only Harvard's endowment.