June 2018 Committee on School Finance Permanent School Fund
June 14, 2018
9 a.m.
COMMITTEE ON SCHOOL FINANCE/PERMANENT SCHOOL FUND - Room 1-104
Members: David Bradley, chair; Tom Maynard, vice chair; Lawrence A. Allen, Jr.;
Patricia Hardy; Ken Mercer. 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 registering and taking public testimony at State Board of Education committee meetings and general board meetings are provided online.
1. Per Capita Apportionment Rate for the 2017-2018 School Year
The board is responsible for setting a per capita apportionment rate for each year based on an estimate of the amount available for expenditures from the Available School Fund. The board adopted a preliminary 2017-2018 per capita apportionment rate of $206.566 in September 2017. Agency staff members will propose a recommended rate of $206.566 for the 2017-2018 school year at the June meeting of the Committee on School Finance/Permanent School Fund. Statutory authority for this action is the Texas Education Code (TEC), §42.004 and §43.001(b).
COMMITTEE - ACTION
SBOE - CONSENT
2. Review of Permanent School Fund Securities Transactions and the Investment Portfolio
Investment staff will report on the transactions executed during the months of March and April 2018 in the investment portfolio of the Texas Permanent School Fund.
COMMITTEE - DISCUSSION
SBOE – NO ACTION
3. Ratification of the Purchases and Sales of the Investment Portfolio of the Permanent School Fund for the Months of March and April 2018
This item provides an opportunity for the committee and board to consider approval of the purchases and sales of investments executed in the portfolio of the Permanent School Fund for the months of March and April 2018. Statutory authority for this action is the Texas Constitution, Article VII, §5(f).
COMMITTEE - ACTION
SBOE - CONSENT
4. First Quarter 2018 Permanent School Fund Performance Report
The performance measurement consultant to the Permanent School Fund, BNY Mellon Asset Servicing, will report on the investment performance during the first calendar quarter 2018 and cumulative investment performance of the various portfolios of the Fund. This item will allow the committee to discuss in depth various issues related to portfolio management such as risk characteristics of portfolios and portfolio attributes.
COMMITTEE - DISCUSSION
SBOE – NO ACTION
5. Decision on Real Estate Investments
This item provides an opportunity for the committee and board to review and consider possible real estate investments. Statutory authority for this action is the Texas Constitution, Article VII, §5(f).
COMMITTEE - ACTION
SBOE - CONSENT
6. Review of the Permanent School Fund Real Estate Annual Tactical Plan
This item provides an opportunity for the committee and board to review the real estate annual tactical plan. The committee and board may take action based on this information. Statutory authority for this action is the Texas Constitution, Article VII, §5(f).
COMMITTEE - ACTION
SBOE - CONSENT
7. Review of the Permanent School Fund Private Equity Investment Policy and Guidelines
This item provides an opportunity for the committee and board to review the private equity policy and guidelines. The committee and board may take action based on this information. Statutory authority for this action is the Texas Constitution, Article VII, §5(f).
COMMITTEE - ACTION
SBOE - CONSENT
8. Review of the Bond Guarantee Program Charter Capacity
This item provides an opportunity for the committee and board to receive a presentation on the bond guarantee program’s charter capacity. Statutory authority for this action is the Texas Education Code (TEC), §45.053 and §45.0532.
COMMITTEE - ACTION
SBOE - CONSENT
9. Report of the Permanent School Fund Executive Administrator and Chief Investment Officer
The Permanent School Fund executive administrator will report to the committee on matters relating to the management of the Permanent School Fund. The report will present information on historical and current status of Fund holdings, current and proposed investment policies and procedures, and historical and current Fund performance and compliance. The administrator will update the board on the bond guarantee program, the status of requests for proposal or for qualifications and current contracts for services and other administrative activities undertaken on behalf of the board. The administrator may provide an update on the PSF distribution or on the effect of legislation impacting the PSF. The administrator will provide an analysis of current and future investment market conditions, focusing upon the impact on the holdings of the Permanent School Fund.
COMMITTEE - DISCUSSION
SBOE – NO ACTION
10. Activities Related to a Student Art Competition to Develop a Permanent School Fund Logo
This item provides the opportunity for the committee and board to consider activities related to a student art competition to create a Permanent School Fund logo. Statutory authority for this action is the Texas Constitution Article VII, §5(f) and Texas Education Code (TEC), §7.102(c)(3).
COMMITTEE - ACTION
SBOE - ACTION