WEDNESDAY
January 25, 2012
10 a.m.
COMMITTEE ON SCHOOL FINANCE/PERMANENT SCHOOL FUND - Room 1-104
Members: Pat Hardy, Chair; Lawrence A. Allen, Jr.; David Bradley; Bob Craig; and Thomas Ratliff. 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=2147497741.
1. Review of 19 TAC Chapter 129, Student Attendance, Subchapter A, Student Attendance Allowed, and Subchapter B, Student Attendance Accounting, and Discussion of Proposed Amendment to 19 TAC §129.21, Requirements for Student Attendance Accounting for State Funding Purposes
Texas Government Code, §2001.039, establishes a four-year rule review cycle for all state agency rules, including State Board of Education (SBOE) rules. This item presents the review of 19 TAC Chapter 129, Student Attendance, Subchapter A, Student Attendance Allowed, and Subchapter B, Student Attendance Accounting. Subchapter A addresses free attendance in general, and Subchapter B addresses requirements for student attendance accounting for state funding purposes. This item also provides an opportunity for the committee to discuss proposed amendment to 19 TAC §129.21, Requirements for Student Attendance Accounting for State Funding Purposes. The statutory authority for the rule review is the Texas Government Code, §2001.039. The statutory authority for 19 TAC Chapter 129, Subchapters A and B, is the Texas Education Code (TEC), §42.004.
COMMITTEE - DISCUSSION
SBOE - NO ACTION
2. Review of Permanent School Fund Securities Transactions and the Investment Portfolio
Investment staff will report on the transactions executed during the months of October and November 2011 in the investment portfolio of the Texas Permanent School Fund.
COMMITTEE - DISCUSSION
SBOE - NO ACTION
3. Ratification of the Purchases and Sales of the Investment Portfolio of the Permanent School Fund for the Months of October and November 2011
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 October and November 2011. Statutory authority for this action is the Texas Constitution, Article VII, §5(f).
COMMITTEE - ACTION
SBOE - CONSENT
4. Annual Reporting Requirement of the Internally Managed Permanent School Fund Investment Portfolio
This item provides an opportunity for the executive administrator and chief investment officer of the Permanent School Fund to report on various items required by 19 TAC Chapter 33, Statement of Investment Objectives, Policies, and Guidelines of the Texas Permanent School Fund.
COMMITTEE - DISCUSSION
SBOE - NO ACTION
5. Proposed Amendments to 19 TAC Chapter 33, Statement of Investment Objectives, Policies, and Guidelines of the Texas Permanent School Fund
(First Reading and Filing Authorization)
This item presents for first reading and filing authorization proposed amendments to 19 TAC Chapter 33, Statement of Investment Objectives, Policies, and Guidelines of the Texas Permanent School Fund. The proposed amendments would implement changes reflecting the November 8, 2011, voter approval of Proposition 6, the constitutional amendment that expanded the base by which Permanent School Fund distributions to the Available School Fund are calculated. Additional changes are also proposed that would clarify current procedures and policies. Statutory authority for this action is the Texas Education Code (TEC), §§7.102(c)(31) and (33), 43.0031-43.0034, 43.004, and 45.063; Texas Government Code, §2263.004; and Texas Constitution, Article VII, §5(a)(2), (d), and (f).
COMMITTEE - ACTION
SBOE - CONSENT
6. Decision on Real Estate Investments
This item provides an opportunity for the committee and board to review and consider possible real estate investments. Statutory authority for this action is the Texas Constitution, Article VII, §5(f).
COMMITTEE - ACTION
SBOE - CONSENT
7. Presentation by BlackRock Investment Management, LLC on Investment Management Services Provided to the Permanent School Fund
This item provides an opportunity for the committee to receive a presentation from BlackRock Investment Management, LLC on investment management services provided by the firm to the Permanent School Fund.
COMMITTEE - DISCUSSION
SBOE - NO ACTION
8. Consideration of the Development of Strategic Relationships Within the Absolute Return Asset Class
This item provides an opportunity for the committee and board to review the development of strategic relationships within the absolute return asset class in order to reduce management fees, and to act to solicit appropriate services. Statutory authority for this action is the Texas Constitution, Article VII, §5(f).
COMMITTEE - ACTION
SBOE - ACTION
9. Presentation by Private Equity Separate Account Managers on Investment Management Services Provided to the Permanent School Fund
This item provides an opportunity for the committee to hear a presentation by private equity fund of fund managers on investment management services provided to the Permanent School Fund.
COMMITTEE - DISCUSSION
SBOE - NO ACTION
10. Presentation on Statutory Language Associated with a Permanent School Fund Non-Profit Corporation
This item provides an opportunity for the committee to hear a presentation on the statutory language associated with a Permanent School Fund non-profit corporation.
COMMITTEE - DISCUSSION
SBOE - NO ACTION
11. 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 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 may provide an update on the PSF distribution or on the effect of legislation impacting the PSF. 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