Discussion of the Madoff Financial Scandal
January 22, 2009
COMMITTEE ON SCHOOL FINANCE/PERMANENT SCHOOL FUND: DISCUSSION
STATE BOARD OF EDUCATION: NO ACTION
SUMMARY: This item provides the opportunity for the committee to discuss the Madoff financial scandal that has been in the press over the past month. While none of the Permanent School Fund absolute return fund of funds made investments in the Madoff Funds, there are valuable lessons to be learned.
BOARD RESPONSE: None.
PREVIOUS BOARD ACTION: None.
FUTURE ACTION EXPECTED: None.
BACKGROUND INFORMATION AND SIGNIFICANT ISSUES: None of the Permanent School Fund absolute return fund of funds made investments in the Madoff funds. This item is merely a discussion related to lessons related to the scandal.
FISCAL IMPACT: The distribution of the Permanent School Fund is projected to be $1.4
billion during the 2008-2009 biennium.
PROCEDURAL AND REPORTING IMPLICATIONS: Not applicable.
PUBLIC COMMENTS: None.
OTHER COMMENTS AND RELATED ISSUES: None.
Commissioner of Education
Staff Member Responsible:
Holland Timmins, Executive Administrator
and Chief Investment Officer of the
Texas Permanent School Fund