THURSDAY
June 16, 2022

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; Lawrence A. Allen, Jr., vice chair; Keven Ellis; Patricia Hardy; Marisa Perez-Diaz. 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. Proposed Amendment to 19 TAC Chapter 109, Budgeting, Accounting, and Auditing, Subchapter C, Adoptions By Reference, §109.41, Financial Accountability System Resource Guide 
(Second Reading and Final Adoption)

This item presents for second reading and final adoption 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). No changes are recommended since approved for first reading. Statutory authority is the Texas Education Code (TEC), §§7.102(c)(32), 44.001(a) and (b), 44.007(a)-(d), and 44.008(b).

COMMITTEE – ACTION
SBOE – ACTION

2. Per Capita Apportionment Rate for the 2021-2022 School Year

A per capita apportionment rate for each school year is set based on an estimate of the amount available for expenditure from the Available School Fund (ASF). A preliminary 2021–2022 per capita apportionment rate of $402.428 was set in September 2021. A final per capita apportionment rate is set by the commissioner of education based on actual funds available for expenditure. Agency staff will present the final rate for the 2021–2022 school year at the June 2022 meeting of the Committee on School Finance/Permanent School Fund. Statutory authority is the Texas Education Code (TEC), §§48.004, §48.251(c), and §43.001(b).

COMMITTEE – ACTION
SBOE – CONSENT

3. Report on Permanent School Fund Securities Transactions and the Investment Portfolio and Ratification of Purchases and Sales for the Months of February, March, and April 2022

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 (PSF) for the months of February, March, and April 2022. Statutory authority is the Texas Constitution, Article VII, §2 and §5; and 19 Texas Administrative Code (TAC), Chapter 33.

COMMITTEE – ACTION
SBOE – CONSENT

4. Report on Permanent School Fund Liquid Account and Ratification of Purchases and Sales for the Months of February, March, and April 2022

This item provides an opportunity for the committee and board to receive a status update report on the liquid account and consider approval of the purchases and sales of investments executed in the liquid account for the months of February, March, and April 2022. Statutory authority is the Texas Constitution, Article VII, §2 and §5; Texas Natural Resources Code (NRC), §51.414, as repealed by SB 1232, 87th Legislature, Regular Session, 2021; and 19 Texas Administrative Code (TAC) Chapter 33.

COMMITTEE – ACTION
SBOE – CONSENT

5. First Quarter 2022 Permanent School Fund Performance Report

The performance measurement consultant to the Permanent School Fund (PSF), BNY Mellon Asset Servicing, will report on the investment performance during the first calendar quarter 2022 and the cumulative investment performance of various portfolios of the PSF.  This item provides the opportunity for the committee to discuss in depth, various issues related to portfolio management such as risk characteristics of portfolios and portfolio attributes.  Statutory authority is the Texas Constitution, Article VII, §5(f), and Texas Education Code (TEC), §43.004.

COMMITTEE – DISCUSSION
SBOE – NO ACTION

6. Review the Process to Consider Board Member Nominees for a School Land Board Position

This item provides an opportunity for the committee and board to review the process to consider nominees for a School Land Board position. Statutory authority is the Texas Constitution, Article VII, §2 and §5; 19 Texas Administrative Code (TAC), Chapter 33.

COMMITTEE – ACTION
SBOE – CONSENT

7. Review and Adoption of the Long-Term Strategic Asset Allocation Plan of the Permanent School Fund (SBOE) and the Permanent School Fund Liquid Account

This item provides an opportunity for the board to review and adopt the long-term strategic asset allocation plan of the Permanent School Fund (SBOE) and the Permanent School Fund Liquid Account. Statutory authority is the Texas Constitution, Article VII, §2 and §5; 19 Texas Administrative Code (TAC), Chapter 33.

COMMITTEE – ACTION
SBOE – ACTION

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

The Permanent School Fund (PSF) executive administrator will report to the committee on matters relating to the management of the PSF 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 PSF. Statutory authority is the Texas Constitution, Article VII, §2 and §5; and 19 Texas Administrative Code (TAC), Chapter 33.

COMMITTEE – DISCUSSION
SBOE – NO ACTION