The act authorizes the state treasurer to stagger the terms of the state treasurer's 3 appointed members to the public school fund investment board (investment board), commencing with new appointments beginning on and after July 1, 2022, to ensure that no more than 2 members' terms expire in the same year.
Beginning in the 2022-23 state fiscal year, the act reorganizes the distribution of interest or income earned on the investment of the money in the public school fund (fund) to:
- Pay first from the distribution the services of the investment consultant hired by the investment board;
- Credit next to the state public school fund, for distribution for school finance, all remaining interest and income, not to exceed $21 million dollars; and
- Credit next to the public school capital construction assistance fund all remaining interest and income, not to exceed $20 million dollars.
The act creates a working group, convened by the state treasurer, to consider opportunities to improve the growth of the public school fund and its distributions for the intergenerational benefit of public schools. The act authorizes the state treasurer, after consulting with the investment board, to select the members of the working group, and the act specifies the issues the working group must study. Not later than February 28, 2023, the state treasurer shall report the findings and recommendations of the working group to the joint budget committee and to the education committees of the house of representatives and of the senate.
The act modifies the time frame and clarifies the circumstances in which a realized investment loss to the fund may be offset by realized gains before the general assembly is required to appropriate money to cover losses to the fund.
(Note: This summary applies to this bill as enacted.)