November 16, 2021 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
November 16, 2021
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). An update on the status of the process toward implementing the provision of SB1232 will be provided. A quorum of the SBOE, including the chair, may attend the meeting.
STATUTORY AUTHORITY: Texas Constitution, Article VII, §2 and §5, and Natural Resources Code (NRC), §32.0161.
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 SBOE to manage and invest the permanent school fund in accordance with the prudent person standard.
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: None.
BACKGROUND INFORMATION AND JUSTIFICATION: On June 4, 2020, the SBOE Committee on School Finance/Permanent School Fund and the School Land Board held a joint meeting.
Staff Member Responsible:
Holland Timmins, Executive Administrator and Chief Investment Officer, Texas Permanent School Fund