WEDNESDAY
September 22, 2010
9 a.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 2010-2011 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 rate for the 2010-2011 school year will be proposed at the September 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. Texas Education Agency Administrative and Program Strategic Budget for Fiscal Year 2011
Staff will review the Texas Education Agency administrative and program budget for fiscal year 2011 as per the appropriations set by the 81st Texas Legislature in Senate Bill 1, Regular Session. Additionally, staff will review the 2012-2013 Legislative Appropriations Request. The committee will be provided an opportunity to comment on the proposed budgets. Statutory authority is Texas Education Code (TEC), §7.055(c).
COMMITTEE - DISCUSSION
SBOE - NO ACTION
3. Review of Permanent School Fund Securities Transactions and the Investment Portfolio
Investment staff will report on the transactions executed during the months of June and July 2010 in the investment portfolio of the Texas Permanent School Fund.
COMMITTEE - DISCUSSION
SBOE - NO ACTION
4. Ratification of the Purchases and Sales of the Investment Portfolio of the Permanent School Fund for the Months of June and July 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 June and July 2010. Statutory authority for this action is the Texas Constitution, Article VII, §5(f).
COMMITTEE - ACTION
SBOE - CONSENT
5. Review of the Absolute Return Portfolios Managed for the Permanent School Fund
This item provides an opportunity for the committee to receive presentations on the absolute return portfolios managed for the Permanent School Fund.
COMMITTEE - DISCUSSION
SBOE - NO ACTION
6. Review of the Private Equity Portfolios Managed for the Permanent School Fund
This item provides an opportunity for the committee to receive a presentation on the private equity portfolios managed for the Permanent School Fund.
COMMITTEE - DISCUSSION
SBOE - NO ACTION
7. Presentation by Mellon Bank on the Custody and Securities Lending Services Provided to the Permanent School Fund
This item provides an opportunity for Mellon Bank to review the custody and securities lending services provided to the Permanent School Fund.
COMMITTEE - DISCUSSION
SBOE - NO ACTION
8. Second Quarter of 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 second 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
9. Decision on Real Estate Investments
This item provides an opportunity for the committee and board to review and consider possible real estate investments in AG Core Plus Realty Fund III, L.P. and AG Realty Fund VIII, L.P. Statutory authority for this action is the Texas Constitution, Article VII, §5(f).
COMMITTEE - ACTION
SBOE - ACTION
10. Authorization to Issue a Request for Proposals for Risk Parity Asset Class
This item provides an opportunity for the board to approve the issuance of a request for proposals for the risk parity asset class. Statutory authority for this action is the Texas Constitution, Article VII, §5(f).
COMMITTEE - ACTION
SBOE - ACTION
11. Discussion on Small/Mid Cap International Equities
This item provides an opportunity for the committee to discuss small/mid cap international equities.
COMMITTEE - DISCUSSION
SBOE - NO ACTION
12. Socially and Politically Responsible Investment
This item provides the opportunity for the committee to address socially and politically responsible investment. Statutory authority for this action is the Texas Constitution, Article VII, §5.
COMMITTEE - ACTION
SBOE - CONSENT
13. 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, 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