August-September 2023 Committee on School Finance/Permanent School Fund
August-September 2023 Committee on School Finance/Permanent School Fund
THURSDAY
August 31, 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. Per Capita Apportionment Rate for the 2023-2024 School Year
A per capita apportionment rate for each school year is set by the commissioner of education based on an estimate of the amount available for expenditure from the Available School Fund (ASF). This item provides an opportunity for agency staff members to present the preliminary rate for the 2023-2024 school year. Statutory authority is the Texas Education Code (TEC), §§48.004, 48.251(c), and 43.001(b).
COMMITTEE – DISCUSSION
SBOE – NO ACTION
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 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 – DISCUSSION
SBOE – NO ACTION
This item provides an opportunity for the committee to discuss 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). Statutory authority is the Texas Education Code (TEC), §§7.102(c)(32), 44.007(a)-(d), and 44.008(b).
COMMITTEE – DISCUSSION
SBOE – NO ACTION
This item provides an opportunity for the committee and board to review the requirement in Article VII, §5(a)(2) that states, the total amount distributed over ten years cannot exceed the total return on all investment assets of the Permanent School Fund (PSF) over the same ten-year period. The board will determine whether transfers may be made from the PSF to the Available School Fund (ASF) in fiscal year 2024. Statutory authority is the Texas Constitution, Article VII, §2 and §5; and 19 Texas Administrative Code (TAC), Chapter 33.
COMMITTEE – ACTION
SBOE – CONSENT