By Ed Sterling.
Texas’ 160-year-old Permanent School Fund had grown to $29 billion, a record high value, in December 2013, the Texas Education Agency reported Feb. 6.
The fund was created by the state in 1854 with a $2 million investment. Last year was a good one. In fiscal year 2013, which ended Aug. 31, the fund earned a return of 10.16 percent — the highest return earned by any major state of Texas investment fund. Recent strong returns also made the Permanent School Fund the best performing major state fund over a three-year period ending on Aug. 31, 2013, with a return of 11.07 percent.
How the fund helps at the local level:
• A distribution from the fund is made every year to help pay a portion of education costs in each school district. During the 2012-2013 biennium, the fund distributed more than $2 billion to Texas public primary and secondary schools.
• The fund provides a guarantee for bonds issued by local school districts and this important support will soon be extended to charter schools, according to the education agency.
As a result of the fund maintaining the AAA bond rating through the global financial crisis, qualified districts are able to pay lower interest rates when issuing bonds.
At the end of 2013, the fund’s assets guaranteed $55.2 billion in school district bonds, providing a cost savings to 810 public school districts, the education agency stated.
Primary inches closer
Voters take to the polls to participate in the 2014 Primary Election on March 4, with early voting to be conducted Feb. 18 through Feb. 28.
Political action committees of every stripe are publicizing the names of candidates they support in the various races and campaign advertising pouring forth through various media in most markets. A convenient way to find lists of candidates and a 2014 Primary Election Voters Guide is through local offices of the League of Women Voters of Texas offices or at www.lwvtexas.org; also, voter information may be found at sos.state.tx.us, web home of Secretary of State Nandita Berry, the state’s chief elections officer.
Ed Sterling works for the Texas Press Association and follows the Legislature for the organization.
