June 4, 2020 Joint Meeting-School Finance/Permanent School Fund & School Land Board
Joint meeting of the State Board of Education’s Committee on School Finance/Permanent School Fund and the School Land Board – Work Session
June 4, 2020
COMMITTEE ON SCHOOL FINANCE/PERMANENT SCHOOL FUND: DISCUSSION
STATE BOARD OF EDUCATION: NO ACTION
SUMMARY: The State Board of Education’s (SBOE) Committee on School Finance/Permanent School Fund and the School Land Board (SLB) will hold a joint meeting to discuss the allocation of the assets of the Permanent School Fund (PSF), the investment of the fund, and the PSF distribution to the Available School Fund (ASF). A quorum of the SBOE, including the chair, may attend the meeting.
STATUTORY AUTHORITY: Natural Resources Code (NRC), §32.0161, as amended by Senate Bill (SB) 608, 86th Texas Legislature, 2019.
NRC, §32.0161 directs the two boards to meet annually to discuss the allocation of the assets of the permanent school fund and the investment of the money in the fund. Each member of each board must attend the meeting unless the member's absence is excused by majority vote of the respective board. Because the SBOE delegates much of the oversight of the fund to a committee, NRC, §32.0161(c) requires only a majority of the committee members to attend the meeting.
FUTURE ACTION EXPECTED: An annual meeting will be held between the two boards to increase the understanding of the operations and investment of the entire PSF, which is jointly managed by the two boards. Learning about the roles and duties of the SBOE and the SLB will provide an increased understanding of the overall management of this endowment.
BACKGROUND INFORMATION AND JUSTIFICATION: As part of the sunset review of the continuation and functions of the SLB, the 86th Texas Legislature, 2019, passed SB 608, which continued the operation of that board. The statute expanded the land board from three members to five, which includes the land commissioner and four citizen members. Two of the SLB members must be selected from a list of nominees submitted by the SBOE to the governor’s office. SLB members are appointed by the governor for a two-year term of office. The statute further directs the SBOE and the SLB to meet annually. While there have been informal communications between the boards or the investment staff over the years, it is believed that this will be the first formal joint meeting of the boards.
Staff Members Responsible:
Holland Timmins, Executive Administrator and Chief Investment Officer, Texas Permanent School Fund