This paper examines the development of Alaska's Public School Fund, its current status, and its potential as a major revenue source for elementary and secondary education. The fund, which was created following the 1915 federal school lands grant to Alaska, is examined for the 1916-58 territorial period, the 1959-78 early statehood period, and the 1979-83 contemporary period. The examination covers the treatment and status of school lands, which, until July 1, 1978, provided the primary revenue source for the fund. Legislative changes in the status of school lands and the fund that took effect at the beginning of the contemporary period are reviewed, and a case is developed for the Public School Fund becoming a permanent fund for education. The final section presents a summary and six recommendations: (1) increase the amount of land management receipts credited to the fund; (2) manage the fund to achieve maximum rate of return on investments; (3) credit investment income to a designated public school support account; (4) conduct more frequent outside audits of the fund; (5) select and manage the 1980 addition of school land so as to provide maximum income to the fund; and (6) conduct further feasibility studies. Appendixes provide supporting data tables. (Author/TE)