Liquidate $20 billion of it.  

Give it to the people in one lump sum.  That would be close to $30,000 per person.  They can blow it all on a new truck or invest it, creating their own personal endowment  fund for them and their children forever.  It's their choice.  It's called personal responsibility.

The rest pays for state government.  Only the earnings.  

It's not perfect, but both sides achieve most of their goals.