HB 4388

Status: Sent to governor
Author: Rep. Jim Murphy
Sponsor: Sen. Donna Campbell
Summary: Requires the SBOE to provide to the School Land Board (SLB) a financial report on the portion of the permanent school fund (PSF) assets for which the SBOE is responsible. The report must include information on asset allocations, investment performance, benchmarks and costs of implementing and administering the newly-created PSF liquid account. The SLB must provide a similar report to the SBOE for assets under its jurisdiction.

The PSF liquid account is created for use by both the SBOE and SLB as an account into which funds not required for other purposes (such as anticipated cash needs) can be deposited and invested in liquid assets. Income and capital gains from such funds will be deposited to the credit of the SBOE for investment in the PSF.

Requires that TEA in consultation with the General Land Board study the distributions from the PSF to the available school fund (ASF). It will examine historical patterns in distributions and asset values relative to the number of students in the public education, analyze the impact of assumptions on actual and projected distributions from the PSF, seek input from state officials involved in public education policy or appropriations, examine approaches to balance the needs and interests of present and future beneficiaries of the PSF and ASF, and develop options to maximize distributions for education while preserving the corpus.

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