8/10/11

Yesterday, Texas Attorney General Opinion No. GA--0870 (2011) was issued on "Permissible investments of the permanent school fund." 

The Opinion explains,  "...We conclude that Texas law would authorize the Board to make investments that directly help charter schools acquire instructional facilities, but only if persons of ordinary prudence, discretion, and intelligence do so for their own account, not in regard to speculation but in regard to the permanent disposition of their funds, considering the probable income as well as the probable safety of their capital...Texas law does not authorize the Board to make PSF investments in regard to any other objective or to consider any other kind of factor in managing PSF assets...".

The Summary to the Opinion states,

"The text of article VII, section 5(f) of the Texas Constitution, provides that the State Board of Education may make any investment that persons of ordinary prudence, discretion, and intelligence make in the management of their own affairs, not in regard to speculation, but in regard to the permanent disposition of their funds, considering the probable income as well as the probable safety of their capital. The text of article VII, section 5(f) does not authorize the Board to make investments in regard to any other objective or to consider any other kind of factor in managing permanent school fund assets."

To read the opinion, click on the link below. 

 https://www.oag.state.tx.us/opinions/opinions/50abbott/op/2011/htm/ga-0871.htm