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April 2019 Committee on School Finance/Permanent School Fund Item 6

Adoption of an Annual Report on the Status of the Bond Guarantee Program

April 5, 2019

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 adopt an annual report on the status of the Bond Guarantee Program.

STATUTORY AUTHORITY: Texas Constitution, Article VII, §2 and §5, and Texas Education Code (TEC), §45.053(c)

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.

TEC, §45.053(c) requires the State Board of Education (SBOE) to adopt an annual report on the status of the guaranteed bond program.

The full text of statutory citations can be found in the statutory authority section of this agenda.

PREVIOUS BOARD ACTION:
None

BACKGROUND INFORMATION AND JUSTIFICATION: Texas Education Code (TEC), §45.053, states that “The commissioner shall prepare, and the board shall adopt an annual report on the status of the guaranteed bond program.”

PUBLIC 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 COMMENTS:
None

Staff Members Responsible:

Holland Timmins, Executive Administrator and Chief Investment Officer, Texas Permanent School Fund