April 2016 Committee on School Finance Permanent School Fund Item 10

Authorization to Issue a Request for Proposals for Global Custody and Securities Lending Services for the Texas Permanent School Fund

April 8, 2016

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 consider the issuance of the Request for Proposals for Global Custody and Securities Lending Services for the Texas Permanent School Fund.

STATUTORY AUTHORITY: Texas Constitution, Article VII, §5(f).

PREVIOUS BOARD ACTION:
None.

BACKGROUND INFORMATION AND SIGNIFICANT ISSUES: The current contract for global custodian ends on August 31, 2017, with no extensions available. This item provides the board the opportunity to authorize the issuance of the Request for Proposal.

FISCAL IMPACT: The distribution of the Permanent School Fund is projected to be $2.1 billion during the 2016-2017 biennium.

PUBLIC AND STUDENT BENEFIT: The distribution of the Permanent School Fund will flow to the school districts and reduce the tax burden to the public and the state of Texas.

PROCEDURAL AND REPORTING IMPLICATIONS: Not applicable.

PUBLIC COMMENTS: None.

ALTERNATIVES: No alternative actions are proposed regarding this item.

OTHER COMMENTS AND RELATED ISSUES: None.

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