WEDNESDAY
July 21, 2010
12 p.m.
COMMITTEE ON SCHOOL FINANCE/PERMANENT SCHOOL FUND - Room 1-104
Members: David Bradley, Chair; Rick Agosto, Vice Chair; Cynthia Dunbar; Gail Lowe; and Rene Nuñez. 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 at http://www.tea.state.tx.us/index4.aspx?id=3958.
1. Per Capita Apportionment Rate for the 2009-2010 School Year
The board is responsible for setting a per capita apportionment rate for each school year based on an estimate of the amount available for expenditures from the Available School Fund. The recommended revised rate for the 2009-2010 school year will be proposed at the July meeting of the Committee on School Finance/Permanent School Fund. Statutory authority for this action is Texas Education Code, (TEC) §42.004 and §43.001(b).
COMMITTEE - ACTION
SBOE - ACTION
2. Production of Large Type Materials for Texas Public Schools
This item proposes acceptance of a proposal for production of large type versions of the textbooks scheduled to be adopted by the State Board of Education (SBOE) in November 2010. At that time, the board is scheduled to award a production contract based on the recommendations of a review panel of outstanding Texas teachers of the visually impaired. Statutory authority for this action is Texas Education Code (TEC), §31.028.
COMMITTEE - ACTION
SBOE - ACTION
3. Accessible Digital Textbook Files and Materials for Texas Public Schools
This item proposes acceptance of proposals for production of an array of accessible digital textbook files and instructional materials including digital braille files for use with portable braille-reading devices, other accessible student-ready digital files, tactile graphics, and embossed braille textbook copies from the textbooks scheduled to be adopted by the board in November 2010. At the November 2010 meeting, the board is scheduled to award production contracts based on the recommendations of a review panel of experts on accessible instructional materials. Statutory authority for this action is Texas Education Code (TEC), §31.028.
COMMITTEE - ACTION
SBOE - ACTION
4. Report by the State Auditor’s Office on the Certification of the Bond Guarantee Program for Fiscal Year Ending August 31, 2009
This item provides an opportunity for representatives of the State Auditor’s Office (SAO) to make a presentation regarding the Bond Guarantee Program.
COMMITTEE - DISCUSSION
SBOE - NO ACTION
5. Adoption of an Annual Report on the Status of the Bond Guarantee Program
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 for this action is the Texas Constitution, Article VII, §5(f).
COMMITTEE - ACTION
SBOE - CONSENT
6. Review of Charter Facilities Funding
This item provides an opportunity for the committee to review and discuss the charter facilities funding as well as a discussion of an asset allocation.
COMMITTEE - DISCUSSION
SBOE - NO ACTION
7. Review of Permanent School Fund Securities Transactions and the Investment Portfolio
Investment staff will report on the transactions executed during the months of March, April and May 2010 in the investment portfolio of the Texas Permanent School Fund.
COMMITTEE - DISCUSSION
SBOE - NO ACTION
8. Ratification of the Purchases and Sales of the Investment Portfolio of the Permanent School Fund for the Months of March, April and May 2010
This item provides an opportunity for the committee and board to consider approval of the purchases and sales of securities executed in the portfolio of the Permanent School Fund for the months of March, April and May 2010. Statutory authority for this action is the Texas Constitution, Article VII, §5(f).
COMMITTEE - ACTION
SBOE - CONSENT
9. First Quarter 2010 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 of 2010 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
10. Review of the Absolute Return Portfolios Managed for the Permanent School Fund
This item provides an opportunity for the committee to receive an overview of the absolute return portfolios managed for the Permanent School Fund.
COMMITTEE - DISCUSSION
SBOE - NO ACTION
11. Decision to Consider the Schedule of the Request for Proposals for the Absolute Return Discretionary Separately Managed Account Fund-of-Hedge Funds Manager
This item provides an opportunity for the board to review the schedule for the request for proposals for the absolute return discretionary separately managed account fund-of-hedge funds manager, and consider possible changes in the schedule. Statutory authority for this action is the Texas Constitution, Article VII, §5(f).
COMMITTEE - ACTION
SBOE - ACTION
12. Selection of Qualified Respondents for Request for Qualifications (RFQ) for Fiduciary Counsel, Alternative Assets Portfolio/Contracting and Tax Counsel for the Permanent School Fund
This item provides an opportunity for the committee and board to review and approve a list of qualified candidates who responded to the request for qualifications for Fiduciary Counsel, Alternative Assets Portfolio/Contracting and Tax Counsel for the Permanent School Fund. The board will interview candidates as needed. Statutory authority for this action is the Texas Constitution, Article VII, §5(f).
COMMITTEE - ACTION
SBOE - ACTION
13. Discussion on Socially and Politically Responsible Investment
This item provides an opportunity for the committee to discuss socially and politically responsible investment.
COMMITTEE - DISCUSSION
SBOE - NO ACTION
14. 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 PSF distribution, 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 will provide an analysis of current and future investment market conditions, focusing upon the impact on the holdings of the Permanent School Fund. The committee will direct investment staff regarding future agenda items.
COMMITTEE - DISCUSSION
SBOE - NO ACTION