September 2020 Committee on School Finance/Permanent School Fund Item 2
Review of the Study of the Permanent School Fund Distributions as defined in House Bill 4388, 86th Legislature, 2019
September 1, 2020
COMMITTEE ON SCHOOL FINANCE/PERMANENT SCHOOL FUND: DISCUSSION
STATE BOARD OF EDUCATION: NO ACTION
SUMMARY: This item provides an opportunity for the board to discuss the study on the Permanent School Fund (PSF) Distributions as defined in House Bill (HB) 4388, 86th Legislature, 2019.
STATUTORY AUTHORITY: House Bill (HB) 4388, Section 5(b), 86th Legislature, 2019.
HB 4388, 86th Legislature, requires that the Texas Education Agency (TEA) in consultation with the General Land Office, conduct a study regarding distributions from the PSF to the Available School Fund. Section 5 provides certain items that the study must consider and allows the TEA to contract for investment management expertise for the purpose of preparing and completing the study. Section 5 further provides that no later than June 1, 2020, the TEA shall prepare and submit a report regarding the results of the study to the Governor, the State Board of Education, the Legislative Budget Board, the Lieutenant Governor, the Speaker of the House of the Representatives, and each legislative standing committee with primary jurisdiction over public education.
The full text of statutory citations can be found in the statutory authority section of this agenda.
PREVIOUS BOARD ACTION: The Committee received a presentation related to the study of the Permanent School Fund Distributions as defined in HB 4388, 86th Legislature, 2019 at the January 2020 meeting.
BACKGROUND INFORMATION AND JUSTIFICATION: HB 4388, Section 5, requires the TEA to conduct a study regarding Permanent School Fund distributions and allows for the agency to contract for investment management expertise for the study. The agency plans to issue a Request for Qualifications for investment advisory services for this purpose.
PUBLIC BENEFIT: Additional information about the distributions of the Permanent School Fund will be available for the public to review.
PUBLIC COMMENTS: None
Staff Members Responsible:
Andrea Winkler, Director of Operational Support, Strategic Initiatives Division