By: Ogden S.J.R. No. 5
SENATE JOINT RESOLUTION
proposing a constitutional amendment relating to determination of
the market value of the permanent school fund and providing for
certain transfers from the permanent school fund to the available
school fund.
WHEREAS, The purpose of this proposed amendment is to provide
for the long term support of public schools by increasing the size
of the permanent school fund corpus and by protecting the balance of
the available school fund; now, therefore,
BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 5, Article VII, Texas Constitution, is
amended by amending Subsection (a) and adding Subsections (g), (h),
(i), (j), and (k) to read as follows:
(a) The permanent school fund consists of all land
appropriated for public schools by this constitution or the other
laws of this state, other properties belonging to the permanent
school fund, and all revenue derived from the land or other
properties. The available school fund consists of the
distributions made to it from the total return on all [investment]
assets of the permanent school fund, the taxes authorized by this
constitution or general law to be part of the available school fund,
and appropriations made to the available school fund by the
legislature. The total amount distributed from the permanent
school fund to the available school fund:
(1) in each year of a state fiscal biennium must be an
amount that is not more than six percent of the average of the
market value of the permanent school fund, including [excluding]
real property belonging to the fund that is managed, sold, or
acquired under Section 4 of this article and proceeds from sales of
that property, on the last day of each of the 16 state fiscal
quarters preceding the regular session of the legislature that
begins before that state fiscal biennium, in accordance with the
rate adopted by:
(A) a vote of two-thirds of the total membership
of the State Board of Education, taken before the regular session of
the legislature convenes; or
(B) the legislature by general law or
appropriation, if the State Board of Education does not adopt a rate
as provided by Paragraph (A) of this subdivision; and
(2) over the 10-year period consisting of the current
state fiscal year and the nine preceding state fiscal years may not
exceed the total return on all investment assets of the permanent
school fund over the same 10-year period.
(g) Notwithstanding any other provision of this
constitution, for the state fiscal biennium beginning September 1,
2011, the General Land Office or an entity other than the State
Board of Education that has responsibility for the management of
permanent school fund land or other properties shall distribute to
the permanent school fund all revenue derived from the land or
properties.
(h) Notwithstanding any other provision of this
constitution, for the state fiscal biennium beginning September 1,
2013, the General Land Office or an entity other than the State
Board of Education that has responsibility for the management of
permanent school fund land or other properties may distribute to
the available school fund all revenue derived from the land or
properties.
(i) Notwithstanding Subsection (a) of this section, the
total amount distributed from the permanent school fund to the
available school fund for the state fiscal biennium beginning
September 1, 2011, shall be an amount equal to $2 billion.
(j) Subsections (g) and (i) of this section and this
subsection expire December 1, 2014.
(k) Subsection (h) of this section and this subsection
expire December 1, 2016.
SECTION 2. This proposed constitutional amendment shall be
submitted to the voters at an election to be held November 8, 2011.
The ballot shall be printed to permit voting for or against the
proposition: "The constitutional amendment providing for the
restructuring of the permanent and available school funds for the
long-term support of public schools."