Issue Date:
Revised Date: 2022-08-25

Legal Cites

Origin:

1876

Purpose

To make a perpetual provision for the support of public free schools in Texas. Fund consists of: land; proceeds from sale of land; earnings of land from royalties; and surface damages

The board may designate funds from any land, mineral or royalty interest, real estate investment or other interest, together with the mineral estate in riverbeds, channels and tidelands, including islands, for deposit in a special real estate account in the Permanent School Fund.

The State Board of Education may, by resolution, transfer money from the real estate special account to the Available School Fund or for investment in the Permanent School Fund. The board may transfer from the Permanent School Fund to the real estate special account as provided by law. Amounts in the real estate special account not being used for the account's purpose are to be transferred to the permanent school fund liquid account (in 0044) to be invested in liquid assets (liquid account repealed effective 12/31/2022).

Classification Group 05: Constitutional Nonexpendable Funds [?]
Depository Interest Retained in appropriated fund (formerly credited to Available School Fund (0002)).
Disposition of Balance Accumulative
Appropriation Technique Not appropriated for expenditure.

Note

S.B. 493, 69th Leg., R.S. added land sale provisions. Proceeds from these land sales may be used for the purchase of other lands for a period of two years and if not used, become part of the corpus of the fund and may not be spent.

S.B. 493 also added the collection of surface damages and use for conservation, reclamation and permanent improvements to PSF lands during a two-year period. After the two-year period, unused damages become part of corpus of the fund and may not be spent.

Amended by H.B. 3558, 77th Leg., R.S.

Amended by H.J.R. 68, 78th Leg., R.S. as passed by the voters on September 13, 2003.

H.B. 3699, 80th Leg., R.S. repealed provisions requiring proceeds from land sales to be used for land purchase within two years. H.B. 3699 added transfer provisions.

Permanent school fund liquid account added by H.B. 4388, 86th Leg., R.S.

S.B. 1232, 87th Leg., R.S. repealed the school fund liquid account effective December 31, 2022.

Administration of fund changed from Texas Education Agency (701) to Texas Permanent School Fund Corporation (706) by S.B. 1232, 87th Leg., R.S.

USAS Values

USAS Title PERMANENT SCHOOL FUND
Consolidated Fund
State Fund Group 05 - CONSTITUTIONAL NONEXPENDABLE FUNDS
USAS Status A
Created by the state's constitution and not expendable for any purpose.