WEDNESDAY
November 17, 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. Approval of Costs of Administering the 2010-2011 Texas Assessment of Knowledge and Skills (TAKS) to Private School Students
Texas Education Code (TEC), §39.033, provides for the voluntary assessment of Texas private school students with the Texas Assessment of Knowledge and Skills (TAKS). The State Board of Education (SBOE) is charged with determining the per-student cost to private schools, which may not exceed the cost of administering the same assessment to a student enrolled in a public school district. This item requests approval of these costs for the 2010-2011 school year. Statutory authority for this action is the TEC, §39.033.
COMMITTEE - ACTION
SBOE - CONSENT
2. Report on Back-Ordered Instructional Materials and Recommendations for Penalties
Each publisher shall have adopted instructional materials in stock and available for distribution to school districts during the entire adoption period as specified in 19 Texas Administrative Code (TAC) §66.78(b). A back order is defined as adopted instructional material not in stock when ordered and not available for delivery to school districts or open-enrollment charter schools on the specified shipment date. This item presents a report on back-ordered instructional materials and recommends penalties to be assessed for publishers with materials not in stock and available for shipment prior to the first day of school year 2009-2010. Statutory authority for this action is the Texas Education Code (TEC) §31.151 and 19 TAC §66.10(g).
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 consider acceptance of the proposals based on the recommendations of a review panel of experts on accessible instructional materials (AIM). Statutory authority for this action is the Texas Education Code (TEC), §31.028.
COMMITTEE - ACTION
SBOE - ACTION
4. Production of Large Type Materials for Texas Public Schools
This item proposes acceptance of proposals for production of large type materials from textbooks to be adopted by the board in November 2010. At the November 2010 meeting, the board will consider acceptance of the proposals based on the recommendations of a review panel of Texas teachers of the visually impaired. Statutory authority for this action is the Texas Education Code (TEC), §31.028.
COMMITTEE - ACTION
SBOE - ACTION
5. Presentations by Finalist Candidates for Absolute Return Discretionary Separately Managed Account Fund-of-Hedge Funds Manager for the Permanent School Fund
The committee will receive presentations by finalist candidates for absolute return discretionary separately managed account fund-of-hedge funds manager for the Permanent School Fund.
COMMITTEE - DISCUSSION
SBOE - NO ACTION
6. Review of Permanent School Fund Securities Transactions and the Investment Portfolio
Investment staff will report on the transactions executed during the months of August and September 2010 in the investment portfolio of the Texas Permanent School Fund.
COMMITTEE - DISCUSSION
SBOE - NO ACTION
7. Ratification of the Purchases and Sales of the Investment Portfolio of the Permanent School Fund for the Months of August and September 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 August and September 2010. Statutory authority for this action is the Texas Constitution, Article VII, §5(f).
COMMITTEE - ACTION
SBOE - CONSENT
8. Proposed Amendments to Section I of the Investment Procedures Manual
This item provides an opportunity for the committee and board to review and adopt amendments to Section I of the Investment Procedures Manual. These amendments represent technical adjustment to maintain compliance with SEC Rule 15(2-12). Statutory authority for this action is the Texas Constitution, Article VII, §5(f).
COMMITTEE - ACTION
SBOE - CONSENT
9. Third 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 third 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. Update on Real Estate Investments
This item provides an opportunity for the committee to receive an update on real estate investments.
COMMITTEE - DISCUSSION
SBOE - NO ACTION
11. Approval of the Selection of a Firm(s) to Provide Absolute Return Discretionary Separately Managed Account Fund-of-Hedge Funds Manager for the Permanent School Fund and Authorization to Negotiate Terms and for Contract Execution by the Commissioner of Education
This item provides an opportunity for the committee and board to review and approve the selection of a firm(s) to provide absolute return discretionary separately managed account fund-of-hedge funds manager for the Permanent School Fund to potentially replace a manager currently on the watch list. Statutory authority for this action is the Texas Constitution, Article VII, §5(f).
COMMITTEE - ACTION
SBOE - ACTION
12. 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