November 15, 2018 Committee on School Finance/Permanent School Fund

THURSDAY
November 15, 2018

9 a.m.


COMMITTEE ON SCHOOL FINANCE/PERMANENT SCHOOL FUND - Room 1-104
Members: David Bradley, chair; Tom Maynard, vice chair; Lawrence A. Allen, Jr.;
Patricia Hardy; Ken Mercer. 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 registering and taking public testimony at State Board of Education committee meetings and general board meetings are provided online.


1. Discussion of Proposed Amendment to 19 TAC Chapter 109, Budgeting, Accounting, and Auditing, Subchapter C, Adoption by Reference, §109.41, Financial Accountability System Resource Guide

This item provides the opportunity for the committee to discuss a proposed amendment to 19 TAC Chapter 109, Budgeting, Accounting, and Auditing, Subchapter C, Adoptions By Reference, §109.41, Financial Accountability System Resource Guide. The proposed amendment would reference the updated Financial Accountability System Resource Guide (FASRG) and remove language relating to the commissioner's role in amending the FASRG. The statutory authority is Texas Education Code (TEC), §§7.055(b)(32), 7.102(c)(32), 44.001(a) and (b), 44.007(a)-(d), and 44.008(b).

COMMITTEE - DISCUSSION
SBOE - NO ACTION


2. Approval of Costs to Administer the 2018-2019 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 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 2018-2019 school year. Statutory authority for this action is the Texas Education Code (TEC), §39.033.

COMMITTEE - ACTION
SBOE - CONSENT


3. Review of Permanent School Fund Securities Transactions and the Investment Portfolio

Investment staff will report on the transactions executed during the months of August and September 2018 in the investment portfolio of the Texas Permanent School Fund.

COMMITTEE - DISCUSSION
SBOE - NO ACTION


4. Ratification of the Purchases and Sales of the Investment Portfolio of the Permanent School Fund for the Months of August and September 2018

This item provides an opportunity for the committee and board to consider approval of the purchases and sales of investments executed in the portfolio of the Permanent School Fund for the months of August and September 2018. Statutory authority for this action is the Texas Constitution, Article VII, §5(f).

COMMITTEE - ACTION
SBOE - CONSENT


5. Proposed Amendments to the Investment Procedures Manual

This item provides an opportunity for the committee and board to review and adopt proposed amendments to the Investment Procedures Manual related to SEC amended rule changes for the Bond Guarantee program disclosure (SEC Rule 15c2-12). Statutory authority for this action is the Texas Constitution, Article VII, §5(f).

COMMITTEE – ACTION
SBOE - CONSENT


6. Update on HB 89

This item provides an opportunity for the committee to receive and discuss an update on HB 89 relating to state contracts with and investments in companies that boycott Israel. Statutory authority is the Texas Education Code (TEC), §45.0532.

COMMITTEE - DISCUSSION
SBOE - NO ACTION


7. An Overview of the Permanent School Fund

This item provides the opportunity for the committee and board to discuss an overview of the combined assets of the Permanent School Fund including both the assets managed by the State Board of Education and the School Land Board. Statutory authority for this action is the Texas Constitution, Article VII, §5(f).

COMMITTEE – ACTION
SBOE - CONSENT

8. Activities Related to a Student Art Competition to Develop a Permanent School Fund Logo

This item provides the opportunity for the committee and board to select winning entries in the student art competition to create a Permanent School Fund logo. Statutory authority for this action is the Texas Constitution Article VII, §5(f) and Texas Education Code (TEC), §7.102(c)(3).

COMMITTEE - ACTION
SBOE - ACTION


9. Report of the Permanent School Fund Executive Administrator and Chief Investment Officer

The Permanent School Fund executive administrator will report to the committee on matters relating to the management of the Permanent School Fund and the Charter District Reserve Fund. The report may present information on historical and current status of Fund holdings, current and proposed investment policies and procedures, and historical and current Fund performance and compliance. The administrator may update the board on the bond guarantee program, the status of requests for proposal or for qualifications and current contracts for services and other administrative activities undertaken on behalf of the board. The administrator may provide an update on the PSF distribution or on the effect of legislation impacting the PSF. The administrator may provide an analysis of current and future investment market conditions, focusing upon the impact on the holdings of the Permanent School Fund.

COMMITTEE- DISCUSSION
SBOE - NO ACTION