September 2024 Committee on School Finance/Permanent School Fund

THURSDAY
September 12, 2024

9:00 a.m.
PSF Corporation meeting starts upon adjournment of the SF/PSF meeting but no earlier than 10:00 a.m.

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 2024-2025 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 staff to present the preliminary rate for the 2024-2025 school year. Statutory authority is the Texas Education Code (TEC), §§48.004, 48.251(c), and 43.001(b).

COMMITTEE – DISCUSSION
SBOE – NO ACTION

2. Determination as to Whether Transfers May be Made from the Permanent School Fund to the Available School Fund

This item provides an opportunity for the committee and board to review the requirements in Article VII, §5(a)(1) and (2), Texas Constitution, that states, the total amount distributed from the Permanent School Fund (PSF) to the Available School Fund (ASF) is not more than six percent of the average market value of the PSF on the last day of each of the sixteen state fiscal quarters preceding the regular session of the legislature that begins before that state biennium; and over the 10-year period the distributions may not exceed the total return on all investment assets of the PSF over the same 10-year period.    The board will determine whether transfers may be made from the PSF to the ASF in fiscal year 2025. Statutory authority is Texas Constitution, Article VII, §2 and §5; 19 Texas Administrative Code (TAC), Chapter 33.

COMMITTEE - ACTION
SBOE - ACTION