This amendment authorizes the creation of permanent funds for two purposes: First, higher education scholarships, which include the current Hathaway scholarship program; and second, improving the quality of higher education. The principal in the funds, regardless of the source of the funds, cannot be expended. The earnings must be used for the purposes specified and the legislature is authorized to regulate how the earnings are used. Earnings from funds in the current Hathaway student scholarship account are intended to be used for college scholarships. The amendment would also allow the funds to be invested as the legislature authorizes, including in stocks.