Under New Mexico's constitution, the State Land Office administers 9 million acres of surface and 13 million acres of mineral rights for its beneficiaries. Each acre of land or mineral rights is designated to a specific beneficiary, with public schools receiving most of revenues. This annual report for fiscal year 1999-2000 details these revenues and their distribution and describes agency efforts to preserve the lands, provide outdoor and environmental education opportunities for New Mexico's schoolchildren, and pursue mixed-use development compatible with local communities' needs and desires. In fiscal year 2000, the agency distributed over $295 million: 82 percent to public schools, 8 percent to special schools, 3 percent to higher education, and 7 percent to hospitals and other beneficiaries. The agency works together with schools and other interest groups to raise public awareness about land conservation programs and issues and to make trust lands available as outdoor classrooms. Agency personnel help prepare lessons plans, assist with outdoor instruction, and present an annual award to an outstanding participating teacher. Staff have identified about 50,000 acres of trust lands as suitable for development. The most prominent development project is Mesa del Sol, near Albuquerque, intended as an innovative model for sustainable community development. This report includes extensive financial details; lists of past commissioners, advisory board members, and award-winning teachers; legislation and policy developments; and strategies to protect nonrenewable assets and sustain the land. (SV)