November 2019 Committee of the Full Board Item 11
Update on Joint Meeting of the State Board of Education and School Land Board
November 13, 2019
COMMITTEE OF THE FULL BOARD: DISCUSSION
STATE BOARD OF EDUCATION: NO ACTION
SUMMARY: The committee will receive an update on efforts to schedule a statutorily-required joint meeting of the State Board of Education (SBOE) and School Land Board (SLB).
STATUTORY AUTHORITY: Texas Constitution, Article VII, §2 and §5; and Natural Resources Code (NRC), §32.0161.
Texas Constitution, Article VII, §2 and §5 establish the permanent school fund, the assets that comprise the permanent school fund, the bond guarantee program, the available school fund, and authorize the SBOE to manage and invest the permanent school fund in accordance with the prudent person standard.
NRC, §32.0161 directs the SBOE and the SLB to hold an annual joint public meeting to discuss the allocation of assets of the permanent school fund and the investment of the money in the fund.
The full text of statutory citations can be found in the statutory authority section of this agenda.
FUTURE ACTION EXPECTED: The SBOE at its June 2019 meeting directed that the first joint meeting of the boards be held in April 2020 and in September in subsequent years. The board also directed that an update on the meeting plans be provided to the SBOE.
BACKGROUND INFORMATION AND JUSTIFICATION: The SBOE and the SLB share management of the Permanent School Fund. The combined PSF is valued at approximately $44 billion and is the largest educational endowment in the country. Of that amount, $10 billion of land, mineral rights, and certain real asset investments are managed by the SLB. The remaining $34 billion in financial investments is managed by the SBOE.
Senate Bill 608, 86th Legislature, 2019, requires the two boards to hold a joint annual meeting. The legislation also expanded the SLB from a three-member board, headed by the elected Texas Land Commissioner, to a five-member board. The Land Commissioner continues to head the board with the number of citizen members expanding from two to four. The legislation requires the SBOE to submit to the governor two lists of six nominees each for him to consider for appointment to the SLB. Agenda items in the Committee on School Finance/Permanent School Fund address the appointments.
Staff Members Responsible:
Holland Timmins, Executive Administrator and Chief Investment Officer, Texas Permanent School Fund.