July 2015 Committee on School Finance Permanent School Fund Item 10

Presentation by Finalist Candidates for Investment Counsel Services for the
Permanent School Fund

July 17, 2015

COMMITTEE ON SCHOOL FINANCE/PERMANENT SCHOOL FUND: ACTION
STATE BOARD OF EDUCATION: CONSENT

SUMMARY: The committee will receive presentations by finalist candidates for investment counsel services for the Permanent School Fund and select firms for contract execution by the commissioner of education.

STATUTORY AUTHORITY: Texas Constitution, Article VII, §5(f).

PREVIOUS BOARD ACTION: At the February 2015 meeting, the board gave approval of the issuance of a request for proposal for investment counsel services for the Permanent School Fund. At the July 2009 meeting, the board voted by unanimous consent to approve the Investment Counsel Services Agreement with NEPC by authorizing an initial contract with two optional two-year extensions allowed by the contract beginning July 2009 and ending August 31, 2015.

BACKGROUND INFORMATION AND SIGNIFICANT ISSUES: None.

FISCAL IMPACT: The distribution of the Permanent School Fund is projected to be $1.677 billion during the 2014-2015 biennium.

PUBLIC AND STUDENT BENEFIT: The distribution of the Permanent School Fund will flow to the school districts and reduce the tax burden to the public and the state of Texas.

PROCEDURAL AND REPORTING IMPLICATIONS: Not applicable.

PUBLIC COMMENTS: None.

ALTERNATIVES: None.

OTHER COMMENTS AND RELATED ISSUES: None.

Staff Member Responsible:
Holland Timmins, Executive Administrator
and Chief Investment Officer of the
Texas Permanent School Fund