September 2025 Committee on School Finance/Permanent School Fund
THURSDAY
September 11, 2025
9:00 a.m.
COMMITTEE ON SCHOOL FINANCE/PERMANENT SCHOOL FUND – Room 2.034
Members: Tom Maynard, chair; Marisa Perez-Diaz, vice chair; Keven Ellis; Will Hickman; and 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 Texas Permanent School Fund Corporation Board of Directors (the “Texas PSF Board”) may be in attendance at this meeting. The Texas PSF Board will not convene during this time. Members of the Texas PSF Board will be acting on behalf of the State Board of Education (“SBOE”) in their statutory role as SBOE members and will solely deliberate and act on matters of the SBOE.
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 2025-2026 School Year
A preliminary per capita apportionment rate for each school year is set by the commissioner of education based on an estimate of the amount available for expenditures from the Available School Fund (ASF). This item provides an opportunity for Agency staff to present the preliminary rate for the 2025-2026 school year. Statutory authority is the Texas Education Code (TEC), §§48.004, 48.251(c), and 43.001(b).
COMMITTEE – DISCUSSION
SBOE – NO ACTION
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 2026. Statutory authority is the Texas Constitution, Article VII, §2 and §5; 19 Texas Administrative Code (TAC), Chapter 33. The 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 State Board of Education (SBOE) to manage and invest the permanent school fund in accordance with the prudent person standard. Article VII §5(a)(1) establishes the six percent distribution rate limit, and §5(a)(2) describes the 10-year test. 19 TAC Chapter 33 codifies administrative rules that provide a statement of investment objectives, policies, and guidelines of the Texas Permanent School Fund and Bond Guarantee Program as adopted by the SBOE.
COMMITTEE - ACTION
SBOE - ACTION