January-February 2023 Committee on School Finance/Permanent School Fund Item 7

Review of the Bond Guarantee Program Reserve

February 3, 2023

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 review and consider an increase to the Bond Guarantee Program reserve.

STATUTORY AUTHORITY: Texas Constitution, Article VII, §2 and §5; 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 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.

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

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