June 2018 Committee on School Finance Permanent School Fund Item 8

June 15, 2018

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

SUMMARY: This item provides an opportunity for the committee and board to receive a presentation on the bond guarantee program’s charter capacity.

STATUTORY AUTHORITY: Texas Education Code (TEC), §§45.053 and 45.0532

PREVIOUS BOARD ACTION: At the September 2017 meeting, the Board increased the charter guarantee capacity, and began the process to move management of the reserve fund to the SBOE. The board established for Fiscal Year 2018 the capacity of the bond guarantee program for charter district bonds at the full twenty percent (20%) allowed under law.

BACKGROUND INFORMATION AND SIGNIFICANT ISSUES: Not applicable.

FISCAL IMPACT: The distribution of the Permanent School Fund is projected to be $2.5 billion during the 2018-2019 biennium.

PROCEDURAL AND REPORTING IMPLICATIONS: Not applicable.

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.

PUBLIC PROCEDURAL AND REPORTING IMPLICATIONS: Not applicable.

PUBLIC COMMENTS: None.

OTHER COMMENTS AND RELATED ISSUES: None.

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