November 2023 Committee on School Finance/Permanent School Fund

THURSDAY
November 16, 2023

10:00 a.m. or upon adjournment of the PSF Corporation Meeting

COMMITTEE ON SCHOOL FINANCE/PERMANENT SCHOOL FUND – Room 1-104

Members: Tom Maynard, chair; Marisa Perez-Diaz, vice chair; Keven Ellis; Patricia Hardy; Aaron Kinsey. A quorum of the State Board of Education may attend the committee meeting and discuss items on the committee agenda. A quorum of the Committee of Investment Advisors to the Permanent School Fund may attend the committee meeting and discuss items on the committee agenda.

Public testimony – Individual testimony will be taken at the time the related item comes up for committee discussion or action. The procedures for public testimony at State Board of Education committee meetings and general board meetings are provided in SBOE Operating Rules.

1. Approval of Costs to Administer the 2023–2024 State-Developed Assessments to Private School Students 

Texas Education Code, §39.033, allows a private school to voluntarily assess its students with the State of Texas Assessments of Academic Readiness (STAAR®) and the Texas English Language Proficiency Assessment System (TELPAS) assessments. The State Board of Education (SBOE) must approve the per-student cost to private schools, which may not exceed the cost of administering the same assessment to a student enrolled in a public-school district. This item requests approval of these costs for the 2023–2024 school year. Statutory authority is the Texas Education Code (TEC), §39.033.

COMMITTEE – ACTION
SBOE – CONSENT

2. Proposed Amendment to 19 TAC Chapter 109, Budgeting, Accounting, and Auditing, Subchapter C, Adoptions By Reference, §109.41, Financial Accountability System Resource Guide
(First Reading and Filing Authorization)

This item presents for first reading and filing authorization a proposed amendment to 19 Texas Administrative Code (TAC) Chapter 109, Budgeting, Accounting, and Auditing, Subchapter C, Adoptions By Reference, §109.41, Financial Accountability System Resource Guide. The proposed amendment would adopt by reference the updated Financial Accountability System Resource Guide (FASRG), which would include allowable costs for dyslexia and related disorders added by House Bill (HB) 3928, 88th Texas Legislature, Regular Session, 2023. Statutory authority is the Texas Education Code (TEC), §§7.102(c)(32), 44.007(a)-(d), and 44.008(b).

COMMITTEE – ACTION
SBOE – CONSENT

3. Adoption of Rule Review of 19 TAC Chapter 33, Statement of Investment Objectives, Policies, and Guidelines of the Texas Permanent School Fund, Subchapter A, State Board of Education Rules, and Subchapter B, Texas Permanent School Fund Corporation Rules

Texas Government Code (TGC), §2001.039, establishes a four-year rule review cycle for all state agency rules, including State Board of Education (SBOE) rules. This item presents the adoption of review of 19 Texas Administrative Code (TAC) Chapter 33, Statement of Investment Objectives, Policies, and Guidelines of the Texas Permanent School Fund, Subchapter A, State Board of Education Rules, and Subchapter B, Texas Permanent School Fund Corporation Rules. Subchapter A establishes distributions to the Available School Fund, SBOE duties related to the Texas Permanent School Fund (PSF) Corporation, ethical standards for SBOE members, the Bond Guarantee Program (BGP), and compliance with Securities and Exchange Commission (SEC) Rule 15c2-12 related to BGP disclosure as required by the Texas Constitution, Article VII, §5(a) and (f), and the Texas Education Code (TEC), Chapter 43. Subchapter B addresses the term length of SBOE members on the board of directors of the Texas PSF Corporation as required by TEC, §43.053. The statutory authority for the rule review is TGC, §2001.039. The statutory authority for 19 TAC Chapter 33, Subchapter A, is Texas Constitution, Article VII, §5(a) and §5(f); TEC, §43.001 and §43.0031; and Senate Bill (SB) 1232, 87th Texas Legislature, Regular Session, 2021. The statutory authority for 19 TAC Chapter 33, Subchapter B, is Texas Constitution, Article VII, §5(a) and §5(f); and TEC, §43.001 and §43.053.

COMMITTEE – ACTION
SBOE – CONSENT

4. Proposed Amendment to 19 TAC Chapter 33, Statement of Investment Objectives, Policies, and Guidelines of the Texas Permanent School Fund, Subchapter A, State Board of Education Rules, §33.2, Distributions to the Available School Fund
(First Reading and Filing Authorization)

This item presents for first reading and filing authorization a proposed amendment to 19 Texas Administrative Code (TAC) Chapter 33, Statement of Investment Objectives, Policies, and Guidelines of the Texas Permanent School Fund, Subchapter A, State Board of Education Rules, §33.2, Distributions to the Available School Fund. The proposed amendment would reinsert information related to the Permanent School Fund (PSF) distribution policy that was mistakenly repealed when 19 TAC Chapter 33 was revised to implement Senate Bill (SB) 1232, 87th Texas Legislature, Regular Session, 2021. Statutory authority is the Texas Constitution, Article VII, §5(a)(2) and (f).

COMMITTEE – ACTION
SBOE – CONSENT