The University of Texas system, the public university with the largest endowment holdings in the country, has announced that it will increase its spending from the biggest piece of that endowment for the 2009 fiscal year.

The decision affects the $11.7-billion Permanent University Fund, which provides support to the University of Texas and Texas A&M University. But the Texas Board of Regents, which approved the increase in the spending rate — from 4.75 percent to 5 percent of the value of that fund — said the increase was not necessarily irreversible.

“Instead, it provides guidance to the board as it conducts its annual review of the distribution policy of the PUF,” the regents said in a statement. The University of Texas’ overall endowment was valued at $15.6-billion as of June 30, 2007. The policy adopted this week does not affect spending from the two other endowed funds that make up that endowment.

Texas is the first major public university to take such a formal step in raising its spending rate, though several private institutions, including Princeton and Stanford Universities and Dartmouth College, have announced similar moves in the past year. Last month, Yale joined the pack, pledging to spend a minimum of 4.5 percent to 6 percent of its endowment value each year.

The Texas regents said they had decided to increase the payout because they have enjoyed several years of good returns. The last time the payout was increased was in 2001, when it went from 4.5 percent to 4.75 percent. The Texas regents have oversight of the fund.

University officials said they expected the increase to generate an additional $27-million for the University of Texas. The regents said they planned to use the additional money to recruit and retain faculty members, which would relieve some pressure on them to raise tuition for such efforts.

Two-thirds of the Permanent University Fund supports the University of Texas and one-third supports Texas A&M. —Goldie Blumenstyk