Texas House Bill HB2037

Texas 2009 - 81st Regular

• Out of House Committee: 4/17/09
• Voted on by House: 4/28/09

Caption

Relating to the creation of the Permanent School Fund Management Council to manage the permanent school fund; providing a criminal penalty.

Impact

The creation of the council represents a noteworthy shift in the governance of the Permanent School Fund. Previously managed by the State Board of Education, the introduction of the council aims to bolster accountability and expertise in investment decisions, potentially leading to improved financial outcomes for the fund. Statutes governing the council will mandate that it operate transparently, with regular reporting on its activities and financial performance to legislative leaders, thereby enhancing public trust in the fund's management.

Summary

House Bill 2037 establishes the Permanent School Fund Management Council, which is tasked with overseeing the management of the Permanent School Fund. This significant legislative measure aims to enhance the governance and investment strategies of the fund, which is critical for funding public education in Texas. The council will consist of nine members with substantial investment and financial management expertise, appointed from various educational and governmental bodies, ensuring a diverse and knowledgeable leadership structure.

Contention

While the bill has garnered support for its focus on professional management of educational funds, it has also sparked debate regarding the implications of such centralization of authority. Critics express concerns that the new governance structure might prioritize investment returns over the specific educational needs of various districts, particularly in economically disadvantaged areas. The tension between financial prudence and educational equity will likely be a point of contention as the council begins its operations.