June 11, 2019 Committee of the Full Board Item 1
Joint meeting of the State Board of Education and School Land Board
June 11, 2019
COMMITTEE OF THE FULL BOARD: DISCUSSION
STATE BOARD OF EDUCATION: NO ACTION
SUMMARY: Members of the State Board of Education, meeting as the Committee of the Full Board, and the School Land Board will hold a joint meeting to discuss issues related to the Permanent School Fund and operations of the School Land Board.
STATUTORY AUTHORITY: Texas Constitution, Article VII, §2 and §5; and Natural Resources Code (NRC), §32.001.
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.
NRC, Chapters 32 and 51 outline the School Land Board’s authority over the land and minerals dedicated to the PSF.
The full text of statutory citations can be found in the statutory authority section of this agenda.
FUTURE ACTION EXPECTED: Legislation relating to the Permanent School Fund was being considered this spring by the Texas Legislature. While the final disposition of the various bills was not known at the time this agenda was prepared, any matters relating to SBOE and/or SLB implementation of passed legislation may be discussed.
BACKGROUND INFORMATION AND JUSTIFICATION: The SBOE and the SLB share management of the Permanent School Fund. The combined PSF is valued at approximately $44 billion and is the largest educational endowment in the country. Of that amount, $10 billion of land, mineral rights, and certain real asset investments are managed by the SLB. The remaining $34 billion in financial investments is managed by the SBOE.
In order to learn more about the SLB’s operations, the SBOE has invited SLB members to provide a presentation about the land board’s day-to-day operations and its investments on behalf of the PSF and participate in a discussion about the PSF.
Staff Members Responsible:
Holland Timmins, Executive Administrator and Chief Investment Officer, Texas Permanent School Fund
June 11, 2019
COMMITTEE OF THE FULL BOARD: DISCUSSION
STATE BOARD OF EDUCATION: NO ACTION
SUMMARY: Members of the State Board of Education, meeting as the Committee of the Full Board, and the School Land Board will hold a joint meeting to discuss issues related to the Permanent School Fund and operations of the School Land Board.
STATUTORY AUTHORITY: Texas Constitution, Article VII, §2 and §5; and Natural Resources Code (NRC), §32.001.
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.
NRC, Chapters 32 and 51 outline the School Land Board’s authority over the land and minerals dedicated to the PSF.
The full text of statutory citations can be found in the statutory authority section of this agenda.
FUTURE ACTION EXPECTED: Legislation relating to the Permanent School Fund was being considered this spring by the Texas Legislature. While the final disposition of the various bills was not known at the time this agenda was prepared, any matters relating to SBOE and/or SLB implementation of passed legislation may be discussed.
BACKGROUND INFORMATION AND JUSTIFICATION: The SBOE and the SLB share management of the Permanent School Fund. The combined PSF is valued at approximately $44 billion and is the largest educational endowment in the country. Of that amount, $10 billion of land, mineral rights, and certain real asset investments are managed by the SLB. The remaining $34 billion in financial investments is managed by the SBOE.
In order to learn more about the SLB’s operations, the SBOE has invited SLB members to provide a presentation about the land board’s day-to-day operations and its investments on behalf of the PSF and participate in a discussion about the PSF.
Staff Members Responsible:
Holland Timmins, Executive Administrator and Chief Investment Officer, Texas Permanent School Fund