June 2021 Committee on School Finance/Permanent School Fund Item 6

Report on the Permanent School Fund Liquid Account

June 25, 2021

COMMITTEE ON SCHOOL FINANCE/PERMANENT SCHOOL FUND: ACTION
STATE BOARD OF EDUCATION: CONSENT

SUMMARY: This item provides an opportunity for the committee and board to receive a status update report on the liquid account and ratify transactions.

STATUTORY AUTHORITY: Texas Constitution, Article VII, §2 and §5; Texas Natural Resources Code (NRC), §51.414; and 19 Texas Administrative Code (TAC) Chapter 33.

The Texas Constitution, Article VII, §2 and §5 establish the permanent school fund, the assets that comprise the permanent school fund, the bond guarantee program, the available school fund, and authorize the State Board of Education (SBOE) to manage and invest the permanent school fund in accordance with the prudent person standard.

NRC, §51.414, created the Liquid Account within the Permanent School Fund to be managed by the SBOE.

19 TAC Chapter 33 codifies administrative rules that provide a statement of investment objectives, policies, and guidelines of the Texas Permanent School Fund and Bond Guarantee Program as adopted by the SBOE.

The full text of statutory citations can be found in the statutory authority section of this agenda.

PREVIOUS BOARD ACTION: At the April 2021 meeting, the board approved purchases in the amount of $684,875,077 and sales in the amount of $204,950,145 for the Permanent School Fund Liquid Account for the period December 1, 2020 through February 28, 2021.

BACKGROUND INFORMATION AND JUSTIFICATION: None.

Staff Member Responsible:
Holland Timmins, Executive Administrator and Chief Investment Officer, Texas Permanent School Fund