WEBVTT 00:00:00.000 --> 00:00:01.930 Alright, 00:00:01.930 --> 00:00:04.410 so we will do that and I will welcome everyone to the 00:00:04.410 --> 00:00:07.430 July 2nd, 2020 meeting of the Texas state Board of 00:00:07.430 --> 00:00:08.800 education. 00:00:08.800 --> 00:00:13.410 And I am going to ask a member of Barbara Cargill to bring us 00:00:13.410 --> 00:00:16.193 the invocation and lead us in the pledges. 00:00:18.900 --> 00:00:23.410 Okay, so we'll start with the invocation. 00:00:23.410 --> 00:00:26.490 And I'd like to start by reading a couple of Bible verses 00:00:26.490 --> 00:00:30.507 from Philippians four, 12, and 13. 00:00:30.507 --> 00:00:34.140 And those verses say, I know what it is to be in need. 00:00:34.140 --> 00:00:36.390 And I know what it is to have plenty. 00:00:36.390 --> 00:00:39.680 I have learned the secret of being content in any and every 00:00:39.680 --> 00:00:42.570 situation, whether well fed or hungry, 00:00:42.570 --> 00:00:45.610 whether living in plenty or in want, 00:00:45.610 --> 00:00:49.210 I can do all this through him who gives me strength. 00:00:49.210 --> 00:00:52.200 So just a couple of words about that. 00:00:52.200 --> 00:00:57.200 I think right now we're seeing a lot of discontent and with 00:00:57.710 --> 00:01:01.540 the pandemic and all the unrest in our country gets hard to 00:01:01.540 --> 00:01:04.670 process why some things are happening, and we, 00:01:04.670 --> 00:01:09.670 I know I tend to wallow in the why, you know, why this, 00:01:09.740 --> 00:01:12.900 why that that's, I know that's normal, 00:01:12.900 --> 00:01:16.900 but what I'm having to focus on is just trusting that God 00:01:16.900 --> 00:01:19.850 never makes a mistake and he knows what we're going through. 00:01:19.850 --> 00:01:22.160 And he knows the why. 00:01:22.160 --> 00:01:27.160 And sometimes he uses hard times today to prepare us for 00:01:27.170 --> 00:01:29.670 what he wants us to do tomorrow. 00:01:29.670 --> 00:01:33.690 And so I have to keep that in mind and that he will work 00:01:33.690 --> 00:01:38.690 everything out for good because his work and his word stands 00:01:40.650 --> 00:01:43.960 and never changes, so the question is, 00:01:43.960 --> 00:01:46.610 how do we respond when we feel like our hearts are breaking? 00:01:46.610 --> 00:01:49.930 I know listening to many of our testifiers the other day, 00:01:49.930 --> 00:01:50.763 you know, 00:01:50.763 --> 00:01:54.000 my heart broke for listening to many of their stories. 00:01:54.000 --> 00:01:59.000 And I just have to trust that God will hold it together and 00:01:59.140 --> 00:02:03.100 that he will work personally with those he loves and he 00:02:03.100 --> 00:02:05.050 loves everyone. 00:02:05.050 --> 00:02:07.760 So he's our source of strength and our security. 00:02:07.760 --> 00:02:12.470 And he trains us for any challenge and sustains us and can 00:02:12.470 --> 00:02:16.960 be trusted, so with that, let's pray, dear Lord, 00:02:18.560 --> 00:02:22.370 we may never fully understand how you're working through 00:02:22.370 --> 00:02:25.083 difficult experiences and situations, 00:02:26.120 --> 00:02:30.373 help us to process everything that we're facing today and 00:02:31.380 --> 00:02:34.100 help us to process it through the filter of your lab, 00:02:34.100 --> 00:02:37.610 not through our lens, which is finite, 00:02:37.610 --> 00:02:40.010 but through your lens, which is infinite. 00:02:40.010 --> 00:02:43.320 And through lab, we know that you love us, 00:02:43.320 --> 00:02:47.080 but sometimes we try to figure things out on our own without 00:02:47.080 --> 00:02:49.760 looking to you for strength and perseverance and through 00:02:49.760 --> 00:02:51.240 your perspective. 00:02:51.240 --> 00:02:52.870 So our mess with your strengths today, 00:02:52.870 --> 00:02:56.850 father guide us as we continue to make decisions on behalf 00:02:56.850 --> 00:02:59.010 of the children of Texas. 00:02:59.010 --> 00:03:00.070 And we ask these things in. 00:03:00.070 --> 00:03:01.023 Your name, amen. 00:03:02.250 --> 00:03:05.770 So now they'll say the U S pledge and we'll give staff a 00:03:05.770 --> 00:03:08.270 minute to put the pledge up on the screen, 00:03:08.270 --> 00:03:11.387 but you may stand or stay seated. 00:03:29.080 --> 00:03:31.510 I pledge allegiance to the flag of the 00:03:31.510 --> 00:03:33.283 United States of America. 00:03:35.740 --> 00:03:36.573 Are we on? 00:03:39.440 --> 00:03:40.370 Yes, your honor. 00:03:40.370 --> 00:03:41.203 Oh, I'm sorry. 00:03:41.203 --> 00:03:42.060 I thought I lost you, all right. 00:03:42.060 --> 00:03:43.850 Let's let's start over, sorry. 00:03:43.850 --> 00:03:46.170 I pledge allegiance to the flag of the 00:03:46.170 --> 00:03:49.730 United States of America and to the Republic for which it 00:03:49.730 --> 00:03:54.490 stands one nation indivisible with Liberty and justice for 00:03:54.490 --> 00:03:55.323 all. 00:03:56.660 --> 00:04:00.190 Now we'll say the pledge to the Texas flag. 00:04:00.190 --> 00:04:01.023 Okay. 00:04:05.860 --> 00:04:07.640 Honor, the Texas flag. 00:04:07.640 --> 00:04:12.640 I pledge allegiance to the Texas one state under God one and 00:04:13.140 --> 00:04:13.973 indivisible. 00:04:14.870 --> 00:04:15.703 Thank you. 00:04:22.030 --> 00:04:24.270 Thank you, Ms. Cargill. 00:04:24.270 --> 00:04:27.563 Very, very wise and timely words there. 00:04:28.490 --> 00:04:30.490 Next we'll move to roll, call roll call. 00:04:30.490 --> 00:04:32.623 So we'll staff, please call the roll. 00:04:43.640 --> 00:04:46.083 Mr, Cortez here. 00:04:46.990 --> 00:04:49.393 That is the asks here. 00:04:50.310 --> 00:04:51.313 Mr, Allen. 00:04:52.800 --> 00:04:57.800 Mr. Mercer, Mrs. Bahorich here. 00:04:58.310 --> 00:05:01.570 Dr, Robinson here. 00:05:01.570 --> 00:05:04.190 Mrs, Cargill here. 00:05:04.190 --> 00:05:07.230 Dr. Ellis, Mr. 00:05:07.230 --> 00:05:08.063 Maynard 00:05:14.820 --> 00:05:15.660 here, Mrs. 00:05:20.330 --> 00:05:23.370 Little Ms. 00:05:23.370 --> 00:05:25.717 Davis, Mrs. 00:05:25.717 --> 00:05:27.570 Milton Malone here. 00:05:27.570 --> 00:05:30.100 And Mr. Rowley, here 00:05:34.720 --> 00:05:36.350 Ms. Martinez. 00:05:36.350 --> 00:05:38.080 Quorum is present. 00:05:38.080 --> 00:05:40.850 The first business to be considered is approval of minutes 00:05:40.850 --> 00:05:42.600 of the State Board of Education meeting from 00:05:42.600 --> 00:05:44.540 April 17th, 2020. 00:05:44.540 --> 00:05:48.730 I would ask members if there are any corrections to the 00:05:48.730 --> 00:05:50.567 minutes hearing none, 00:05:54.540 --> 00:05:58.250 there are no corrections in the minutes approved. 00:05:58.250 --> 00:05:59.570 Thank you. 00:05:59.570 --> 00:06:01.860 We'll now move into public testimony. 00:06:01.860 --> 00:06:04.110 Ms. Martinez, do we have some testifiers. 00:06:05.810 --> 00:06:07.300 Yes. 00:06:07.300 --> 00:06:12.300 So I did send you by email the list of testifiers for this 00:06:12.450 --> 00:06:13.283 morning. 00:06:14.490 --> 00:06:15.800 If you'll give me one moment, 00:06:15.800 --> 00:06:20.800 we will let them into the meeting while she is doing that 00:06:20.920 --> 00:06:23.870 I'll remind members, and also those that are, 00:06:23.870 --> 00:06:28.870 are viewing that during public testimony, these are, 00:06:30.160 --> 00:06:32.840 will be on items that are not on our agenda. 00:06:32.840 --> 00:06:37.690 So we are prohibited from discussing with a testifier any of 00:06:37.690 --> 00:06:39.160 the items that are being discussed, 00:06:39.160 --> 00:06:42.140 other than asking clarification questions or directing them 00:06:42.140 --> 00:06:43.860 to appropriate staff. 00:06:43.860 --> 00:06:47.630 So I do want the testifiers to be aware that we will not, 00:06:47.630 --> 00:06:49.830 we're not able to engage in a discussion with them because 00:06:49.830 --> 00:06:52.787 this is not items that are posted on our agenda. 00:06:57.060 --> 00:06:58.390 Okay. 00:06:58.390 --> 00:07:01.963 So the first testifier is Natanya Patel. 00:07:09.520 --> 00:07:11.057 You may unmute. 00:07:13.430 --> 00:07:14.670 Again, when you're ready, 00:07:14.670 --> 00:07:19.640 you will have three minutes and will receive notification at 00:07:19.640 --> 00:07:23.120 the 30 seconnd mark to wrap up your remarks. 00:07:23.120 --> 00:07:24.133 Alright, thank you. 00:07:24.133 --> 00:07:26.370 Good morning, Board members. 00:07:26.370 --> 00:07:30.110 My name is and I'm a proud graduate of the Texas public 00:07:30.110 --> 00:07:31.610 school system. 00:07:31.610 --> 00:07:34.230 I would like to begin by thanking each one of you for all 00:07:34.230 --> 00:07:37.070 the hard work that you guys have done within the past couple 00:07:37.070 --> 00:07:38.160 of years. 00:07:38.160 --> 00:07:40.550 I know the important work that you guys have been doing by 00:07:40.550 --> 00:07:43.750 implementing the Mexican American history and the African 00:07:43.750 --> 00:07:47.403 American history elective courses in Texas schools. 00:07:50.120 --> 00:07:50.953 And that is a step in the right direction, 00:07:50.953 --> 00:07:55.090 even though the creation of this courses is important and 00:07:55.090 --> 00:07:58.140 they're vital steps, I think that we must do more. 00:07:58.140 --> 00:08:00.690 I urge you to further your efforts and implement an 00:08:00.690 --> 00:08:04.830 anti-racist curriculum for American history courses. 00:08:04.830 --> 00:08:08.010 The recent tragedies effect afflicting the black community 00:08:08.010 --> 00:08:11.740 have made it painfully obvious that our country continues to 00:08:11.740 --> 00:08:16.040 oppress its black citizens and perpetuate racial disparities 00:08:16.040 --> 00:08:19.020 by disregarding large portions of black history, 00:08:19.020 --> 00:08:22.010 we have failed to properly equip our youth with the 00:08:22.010 --> 00:08:25.290 knowledge and resources needed to combine individual 00:08:25.290 --> 00:08:26.123 insistence, 00:08:26.123 --> 00:08:29.550 cinematic racism in our society in order for a country to 00:08:29.550 --> 00:08:31.680 improve and to be a safe, equitable place, 00:08:31.680 --> 00:08:33.800 equitable place for all citizens, 00:08:33.800 --> 00:08:38.140 we have to acknowledge our deeply anti-black past as well as 00:08:38.140 --> 00:08:40.000 the repression that continues today. 00:08:40.000 --> 00:08:42.930 And I believe that this begins in the classroom, 00:08:42.930 --> 00:08:45.480 our petition was sent to each one of you, 00:08:45.480 --> 00:08:48.740 and we believe that it is feasible because we adjusted 00:08:48.740 --> 00:08:51.550 existing takes guidelines can include the minimum 00:08:51.550 --> 00:08:54.510 requirements of what any informed citizen in the 00:08:54.510 --> 00:08:57.170 United States, you know, about our nation's history. 00:08:57.170 --> 00:09:00.733 Let's remember that black history is American history. 00:09:01.750 --> 00:09:05.440 We can not continue to push a politicized distortion of 00:09:05.440 --> 00:09:09.260 history of the history of slavery and civil rights movement. 00:09:09.260 --> 00:09:12.540 When scholars and educators proposed revisions to this teak 00:09:12.540 --> 00:09:14.640 standards in 2010, 00:09:14.640 --> 00:09:17.540 their suggestions were disregarded due to the personal 00:09:17.540 --> 00:09:21.510 religious and political beliefs of SPLU members. 00:09:21.510 --> 00:09:26.090 Now's the time for TEA for you to correct history and to fix 00:09:26.090 --> 00:09:28.580 the past wrongs that have been committed. 00:09:28.580 --> 00:09:32.480 The Texas freedom network released a report in 2018, 00:09:32.480 --> 00:09:35.220 which reviewed the TEKS social studies standards and 00:09:35.220 --> 00:09:38.610 concluded that Texas students leave their classrooms without 00:09:38.610 --> 00:09:42.060 a sound understanding of the origins of important issues 00:09:42.060 --> 00:09:45.070 that sadly continue to divide her division. 00:09:45.070 --> 00:09:46.730 This makes resolving serious problems, 00:09:46.730 --> 00:09:50.970 particularly on matters regarding regarding race and 00:09:50.970 --> 00:09:53.710 discrimination, more difficult today. 00:09:53.710 --> 00:09:54.543 To me, 00:09:54.543 --> 00:09:57.710 this was deeply troubling and almost heartbreaking because 00:09:57.710 --> 00:10:02.120 when I see that in my own state going on, 00:10:02.120 --> 00:10:03.470 it makes it feel as if 00:10:07.130 --> 00:10:11.177 with a $46.5 billion 45, 00:10:11.177 --> 00:10:14.900 $46.5 billion in the permanent school fund of Texas. 00:10:14.900 --> 00:10:17.220 There shouldn't be any excuse that people are willing to do 00:10:17.220 --> 00:10:21.080 the work in implementing an anti-racist curriculum. 00:10:21.080 --> 00:10:23.950 Curriculum timelines have been pushed forward before, 00:10:23.950 --> 00:10:27.260 and I believe that they must be pushed forward once again. 00:10:27.260 --> 00:10:30.900 The next time the curriculum will be reviewed is in 2023. 00:10:30.900 --> 00:10:31.733 However, 00:10:31.733 --> 00:10:35.867 it will be implemented at an even later date that it's 00:10:35.867 --> 00:10:37.423 important that we, 00:10:39.150 --> 00:10:44.150 that we go ahead and review this immediately and add it to 00:10:45.160 --> 00:10:45.993 the agenda. 00:10:47.050 --> 00:10:47.883 Thank you. 00:10:51.640 --> 00:10:55.313 Next is Claudia Devante, Ventura. 00:11:02.050 --> 00:11:05.920 Hello, I'm steamed chairman Ellis and Board members. 00:11:05.920 --> 00:11:08.370 Good morning, I am Claudia Debona Ventura, 00:11:08.370 --> 00:11:10.920 and I'm also a proud graduate of the Texas public school 00:11:10.920 --> 00:11:12.170 system. 00:11:12.170 --> 00:11:14.570 My teammates and I have started a petition regarding the 00:11:14.570 --> 00:11:17.770 implementation of an anti-racist teak standards that 00:11:17.770 --> 00:11:20.590 currently has over 11,000 signatures. 00:11:20.590 --> 00:11:22.200 Despite the amount of signatures, 00:11:22.200 --> 00:11:25.350 we have only received five responses from SPLU members and 00:11:25.350 --> 00:11:28.350 only two members have taken the time to speak with us. 00:11:28.350 --> 00:11:30.920 The current TEAC standards ignore our nation's racist 00:11:30.920 --> 00:11:34.090 history and the present day consequences of our past racial 00:11:34.090 --> 00:11:36.520 violence, slavery, and Jim Crow. 00:11:36.520 --> 00:11:37.353 For example, 00:11:37.353 --> 00:11:39.900 Texas students are not taught about the full depth of the 00:11:39.900 --> 00:11:42.170 civil rights movement in the United States, 00:11:42.170 --> 00:11:44.970 which was as diverse and its leadership goals and 00:11:44.970 --> 00:11:47.470 philosophies as the American revolution, 00:11:47.470 --> 00:11:50.230 black female activists, such as Septima Clark, 00:11:50.230 --> 00:11:52.200 who courageously fought for the infringement and 00:11:52.200 --> 00:11:56.410 franchisement of black citizens are erased by history books 00:11:56.410 --> 00:11:59.100 that choose to instead highlight Confederate generals, 00:11:59.100 --> 00:12:01.360 military prowess, for example, 00:12:01.360 --> 00:12:02.690 portraying Confederate leaders, 00:12:02.690 --> 00:12:05.930 such as general Thomas Stonewall Jackson as effective 00:12:05.930 --> 00:12:08.660 political leaders downplays their trees into the nation. 00:12:08.660 --> 00:12:11.850 And the role in upholding a system of white supremacy. 00:12:11.850 --> 00:12:12.683 Additionally, 00:12:12.683 --> 00:12:15.210 the TEKS make language leaves too much room for individual 00:12:15.210 --> 00:12:18.180 teachers to teach to the personal biases. 00:12:18.180 --> 00:12:19.970 As an example, TEKS high school, 00:12:19.970 --> 00:12:21.340 social studies standard nine. 00:12:21.340 --> 00:12:24.890 He asked teachers to compare and contrast the approach taken 00:12:24.890 --> 00:12:27.560 by the black Panthers with the nonviolent approach 00:12:27.560 --> 00:12:28.543 of Martin Luther King Jr. 00:12:28.543 --> 00:12:32.160 allowing teachers the freedom to emphasize one approach 00:12:32.160 --> 00:12:34.170 as more socially acceptable or effective, 00:12:34.170 --> 00:12:37.540 as opposed to two coinciding and complimentary efforts at 00:12:37.540 --> 00:12:39.640 securing civil rights for black Americans. 00:12:40.910 --> 00:12:43.060 If we place high expectations on our standards, 00:12:43.060 --> 00:12:45.150 we must meet these standards ourselves. 00:12:45.150 --> 00:12:46.780 It is not enough to be racist. 00:12:46.780 --> 00:12:51.380 We have to actively be anti-racist groups, 00:12:51.380 --> 00:12:53.880 such as the daughters of the Confederacy have continuously 00:12:53.880 --> 00:12:56.750 influenced local and state officials for years to teach a 00:12:56.750 --> 00:12:58.640 racist version of history. 00:12:58.640 --> 00:13:01.250 In order to reverse decades of racism in our educational 00:13:01.250 --> 00:13:04.080 system, we must be anti-racist. 00:13:04.080 --> 00:13:06.650 Our curriculum is the building blocks of society. 00:13:06.650 --> 00:13:08.570 And until all students can fully understand the 00:13:08.570 --> 00:13:11.780 repercussions of our history and how they impact us today, 00:13:11.780 --> 00:13:14.400 we have not done enough and can not stop in our efforts to 00:13:14.400 --> 00:13:17.540 improve Texas education for all of our children. 00:13:17.540 --> 00:13:20.640 2023 is far too late to begin reviewing the social studies 00:13:20.640 --> 00:13:21.580 curriculum. 00:13:21.580 --> 00:13:24.420 By then thousands of students will have been taught a vague 00:13:24.420 --> 00:13:26.920 inaccurate narrative that very often excludes black 00:13:26.920 --> 00:13:27.950 Americans. 00:13:27.950 --> 00:13:30.320 It is in your hands to ensure that our future leaders and 00:13:30.320 --> 00:13:32.730 professionals are equipped with the essential skills and 00:13:32.730 --> 00:13:35.790 resources needed to address ongoing discrimination and 00:13:35.790 --> 00:13:37.490 racism in our society. 00:13:37.490 --> 00:13:38.330 Because of this, 00:13:38.330 --> 00:13:41.410 I ask that you add this issue to your September agenda and 00:13:41.410 --> 00:13:43.850 strongly consider moving up the revision timeline for the 00:13:43.850 --> 00:13:46.400 social studies take standards, thank you very much. 00:13:51.110 --> 00:13:53.530 Next is Anne Kita, Jeff. 00:13:56.220 --> 00:13:57.053 Hello. 00:13:58.520 --> 00:14:01.000 My name is Ankita jet and I'm also a proud graduate of the 00:14:01.000 --> 00:14:04.070 Texas public school system regarding the implementation of 00:14:04.070 --> 00:14:05.530 an anti-racist curriculum. 00:14:05.530 --> 00:14:08.070 I was greatly disappointed by the lack of Board responses to 00:14:08.070 --> 00:14:08.903 our petition, 00:14:08.903 --> 00:14:12.150 because this is an issue that the SPOC can no longer ignore 00:14:12.150 --> 00:14:14.530 as one of the most powerful state borders of education in 00:14:14.530 --> 00:14:15.363 the country. 00:14:15.363 --> 00:14:18.540 You have the opportunity and duty to create positive change. 00:14:18.540 --> 00:14:19.373 As you know, 00:14:19.373 --> 00:14:21.080 the Texas curriculum influences textbooks that are 00:14:21.080 --> 00:14:22.620 circulated nationwide. 00:14:22.620 --> 00:14:25.510 So you have the power to properly educate children in Texas, 00:14:25.510 --> 00:14:27.650 as well as across the country, 00:14:27.650 --> 00:14:30.250 black and POC children in Texas need to know that their 00:14:30.250 --> 00:14:33.610 history is just as important as white history Board member 00:14:33.610 --> 00:14:35.890 Cargill said to us in response to our outreach, 00:14:35.890 --> 00:14:37.960 that we should trust our social studies teachers to 00:14:37.960 --> 00:14:41.470 integrate appropriate lessons and use TEKS as the baseline, 00:14:41.470 --> 00:14:43.820 while adding the impact of current events. 00:14:43.820 --> 00:14:46.930 While we know Texas teachers work tireless tirelessly to 00:14:46.930 --> 00:14:49.300 provide a great education for their students, 00:14:49.300 --> 00:14:52.640 it is not enough to expect teachers only sprinkle in lessons 00:14:52.640 --> 00:14:56.080 of black history when public acts of police brutality demand 00:14:56.080 --> 00:14:57.750 attention in the classroom. 00:14:57.750 --> 00:15:00.620 These lessons must be part of the baseline curriculum, 00:15:00.620 --> 00:15:03.190 especially when white history has been prioritized and 00:15:03.190 --> 00:15:06.220 regarded as the baseline curriculum for years. 00:15:06.220 --> 00:15:08.780 This generation of students is very passionate about 00:15:08.780 --> 00:15:11.220 creating a more just unprejudiced world. 00:15:11.220 --> 00:15:14.140 And they often turn to social media to educate themselves on 00:15:14.140 --> 00:15:15.850 current events and black history, 00:15:15.850 --> 00:15:17.850 because they're simply not getting this information in the 00:15:17.850 --> 00:15:20.570 classroom that is unacceptable. 00:15:20.570 --> 00:15:23.690 It is your moral duty to this state and nation to prepare 00:15:23.690 --> 00:15:26.420 our students to become effective citizens and leaders. 00:15:26.420 --> 00:15:28.820 And this requires us to be inclusive, honest, 00:15:28.820 --> 00:15:32.070 and objective by implementing an anti-racist curriculum, 00:15:32.070 --> 00:15:35.140 Texas students and schools will be empowered to foster 00:15:35.140 --> 00:15:38.650 anti-racist and inclusive environments where students of all 00:15:38.650 --> 00:15:41.160 backgrounds can thrive in the past. 00:15:41.160 --> 00:15:44.410 The Texas SBOs has earned a very notorious reputation due to 00:15:44.410 --> 00:15:45.243 its members, 00:15:45.243 --> 00:15:47.670 blatantly adding their racist views to the history TEKS 00:15:47.670 --> 00:15:48.920 review process, 00:15:48.920 --> 00:15:51.260 such as explicitly stating that the cause of the civil war 00:15:51.260 --> 00:15:53.520 was state's rights and not slavery. 00:15:53.520 --> 00:15:55.280 This was eventually corrected, however, 00:15:55.280 --> 00:15:58.070 it's a prime example of how imperative it is to adjust our 00:15:58.070 --> 00:16:01.410 curriculum in a timely manner to remove any possibility of 00:16:01.410 --> 00:16:03.913 objective history, facts being misrepresented. 00:16:04.890 --> 00:16:07.350 We urge that you address this issue in your upcoming meeting 00:16:07.350 --> 00:16:09.840 and strongly consider moving up the revision of the teak 00:16:09.840 --> 00:16:11.053 social studies review. 00:16:11.930 --> 00:16:15.070 We are at a critical point in deciding our country's future. 00:16:15.070 --> 00:16:17.850 We can either choose to acknowledge the role that education 00:16:17.850 --> 00:16:20.710 and state Boards have played in perpetuating institutional 00:16:20.710 --> 00:16:22.870 racism and choose to do better, 00:16:22.870 --> 00:16:26.290 or we can continue miseducating and white washing history. 00:16:26.290 --> 00:16:28.740 The choice is yours and the eyes of this nation are upon the 00:16:28.740 --> 00:16:30.290 Texas State Board of Education. 00:16:39.080 --> 00:16:42.747 And the final testifier is Michael Shepherd. 00:16:52.220 --> 00:16:54.330 Thank you very kindly for the time. 00:16:54.330 --> 00:16:58.500 I'll get straight to the point, I have two topics first, 00:16:58.500 --> 00:17:01.430 starting with comments on the social study, 00:17:01.430 --> 00:17:03.850 TEKS Chapter one 13, 00:17:03.850 --> 00:17:08.273 that which is being implemented this particular school year. 00:17:09.200 --> 00:17:11.000 Sorry, if you can not see me, sorry. 00:17:12.770 --> 00:17:14.100 Okay, great. 00:17:14.100 --> 00:17:17.950 But this particular school year one or two requests 00:17:17.950 --> 00:17:21.080 consideration for the TEKS to be amended, 00:17:21.080 --> 00:17:26.080 to include gradual instructions on race relations, 00:17:26.150 --> 00:17:28.110 as well as racial equality. 00:17:28.110 --> 00:17:30.860 I think that it can be incorporated into three of the 00:17:30.860 --> 00:17:33.700 strands that you currently have on the teach, 00:17:33.700 --> 00:17:37.453 that being history, culture and citizenship. 00:17:38.310 --> 00:17:39.750 I think 00:17:39.750 --> 00:17:44.290 the teaching on there will serve two purposes, one, 00:17:44.290 --> 00:17:49.290 it gives it prepares our students that that will be 00:17:49.360 --> 00:17:53.040 tomorrow's leaders and to creating a equal opportunity, 00:17:53.040 --> 00:17:57.360 as well as respect for diversity, and then secondly, 00:17:57.360 --> 00:18:01.390 this discussion can move from the school to the home and 00:18:01.390 --> 00:18:03.940 then prayerfully to the neighborhood. 00:18:03.940 --> 00:18:06.780 We certainly have a lot of parents today. 00:18:06.780 --> 00:18:08.930 Younger parents that are, 00:18:08.930 --> 00:18:13.930 are don't know how to articulate race relations and racial 00:18:15.460 --> 00:18:17.810 equality to their, the young kids. 00:18:17.810 --> 00:18:21.240 They're asking questions that they're not totally prepared 00:18:21.240 --> 00:18:22.073 to answer. 00:18:22.073 --> 00:18:25.840 So I think the partnership between the school and the home 00:18:25.840 --> 00:18:28.440 will, will reinforce that at home, 00:18:28.440 --> 00:18:32.360 as well as improve relations, racial perspectives that need, 00:18:32.360 --> 00:18:34.563 that need to be improved at home as well. 00:18:35.630 --> 00:18:37.170 And then, and then secondly, 00:18:37.170 --> 00:18:39.800 hopefully this conversation can spill over into the 00:18:39.800 --> 00:18:43.560 neighborhood through small group discussions by way of the 00:18:43.560 --> 00:18:45.550 school sponsoring it. 00:18:45.550 --> 00:18:50.050 This can be done through principal coffees or town halls, 00:18:50.050 --> 00:18:52.320 et cetera, but it will, 00:18:52.320 --> 00:18:57.320 it will enable Frank honest open discussions when we started 00:18:58.040 --> 00:18:58.873 at school. 00:18:58.873 --> 00:19:01.140 And then it goes to the home advanced spills over into the 00:19:01.140 --> 00:19:02.610 neighborhood. 00:19:02.610 --> 00:19:04.490 And then secondly, 00:19:04.490 --> 00:19:09.490 my one or two as a parent and the CFP ISD for over 12 years, 00:19:11.220 --> 00:19:14.680 I am very appreciative to Senate bill 30, 00:19:14.680 --> 00:19:17.793 that being the community safety education act. 00:19:19.000 --> 00:19:22.590 And I know that it went into implementation this past school 00:19:22.590 --> 00:19:24.810 year don't know how given the COBIT and whatnot. 00:19:24.810 --> 00:19:26.740 I noticed spring probably impacted as some, 00:19:26.740 --> 00:19:31.340 but I wanted to comment briefly on the flashing lights 00:19:31.340 --> 00:19:32.173 video. 00:19:33.140 --> 00:19:37.150 I reviewed it and sorry, I viewed it 00:19:40.680 --> 00:19:42.420 30 seconds. 00:19:42.420 --> 00:19:43.810 Okay, flashing lights video. 00:19:43.810 --> 00:19:48.810 Just wanted to ask that it be considered to include content 00:19:50.220 --> 00:19:55.130 on improper interaction from our peace officers and give the 00:19:55.130 --> 00:20:00.020 students suggested guidelines on what should they do if 00:20:00.020 --> 00:20:02.700 they're in that situation, the video is great, 00:20:02.700 --> 00:20:07.700 but it just lacks content on that to enable the instructor 00:20:07.810 --> 00:20:11.360 to teach from a more holistic view in light of the climate 00:20:11.360 --> 00:20:13.470 that we live in, so would ask that 00:20:13.470 --> 00:20:17.760 the video be updated to include suggested guidelines for 00:20:17.760 --> 00:20:19.483 that, thank you very much. 00:20:22.030 --> 00:20:22.970 Thank you. 00:20:22.970 --> 00:20:24.030 And like I said, 00:20:24.030 --> 00:20:25.970 we are not able to have a discussion on this item. 00:20:25.970 --> 00:20:28.190 I would ask, I think all four of the testifiers. 00:20:28.190 --> 00:20:32.650 I still do see them in the room here to reach out to me 00:20:32.650 --> 00:20:34.470 specifically about some of these questions. 00:20:34.470 --> 00:20:37.380 I wouldn't make a comment that we have hundreds of not 00:20:37.380 --> 00:20:41.280 literally thousands of emails coming up into this meeting on 00:20:41.280 --> 00:20:42.540 a variety of different topics. 00:20:42.540 --> 00:20:46.740 So I do apologize for not being able to communicate back all 00:20:46.740 --> 00:20:48.060 those, but four. 00:20:48.060 --> 00:20:50.730 Of you have made an effort to be here and please reach out 00:20:50.730 --> 00:20:51.850 to me specifically, 00:20:51.850 --> 00:20:54.453 and I'll respond back to you at that point in time. 00:20:57.400 --> 00:20:58.233 Okay. 00:20:59.140 --> 00:21:01.463 That does that conclude public. 00:21:04.380 --> 00:21:08.080 We will then move onto item number one on our agenda, 00:21:08.080 --> 00:21:10.890 which is the approval of the Consent Agenda. 00:21:10.890 --> 00:21:13.280 So the next business and order is the approval of the 00:21:13.280 --> 00:21:14.240 Consent Agenda. 00:21:14.240 --> 00:21:18.780 This will begin on page 21 of your Board book. 00:21:18.780 --> 00:21:22.350 Please take a minute to review the items on the consent 00:21:22.350 --> 00:21:23.370 agenda. 00:21:23.370 --> 00:21:27.660 And I would ask if there's anyone at this point in time that 00:21:27.660 --> 00:21:30.330 would like to remove an item from the Consent Agenda, 00:21:30.330 --> 00:21:31.953 you may say, so 00:21:38.190 --> 00:21:43.190 Item six, polled, may we ever request for item number six, 00:21:44.270 --> 00:21:46.280 which is a review of the bond guarantee program, 00:21:46.280 --> 00:21:47.613 charter capacity. 00:21:52.550 --> 00:21:57.020 I wouldn't like to pull the approval of legal counsel for 00:21:57.020 --> 00:22:01.180 the bond guarantee program for discussion, please. 00:22:01.180 --> 00:22:02.013 I believe that's item number seven approval 00:22:02.013 --> 00:22:03.960 of selection of legal counsel 00:22:08.720 --> 00:22:09.553 for bond guarantee program was outlined in. 00:22:09.553 --> 00:22:12.930 Kip says PSF in authorization for contract execution by the 00:22:12.930 --> 00:22:17.063 Commissioner of education or any other items. 00:22:23.740 --> 00:22:24.573 So hearing none, 00:22:24.573 --> 00:22:28.940 the Consent Agenda with items, number one, two, three, four, 00:22:34.510 --> 00:22:35.343 five, eight is adopted. 00:22:35.343 --> 00:22:36.176 And at this point in time, 00:22:36.176 --> 00:22:39.400 we will ask staff to we'll take them in the order that they 00:22:39.400 --> 00:22:40.490 were brought. 00:22:40.490 --> 00:22:44.050 Number five adopted report of the status of the bond 00:22:44.050 --> 00:22:46.450 guarantee program, we'll discuss that one first. 00:22:51.410 --> 00:22:54.260 They taught at item six, you mean, I'm sorry. 00:22:54.260 --> 00:22:55.210 I'm sorry. 00:22:55.210 --> 00:22:57.860 It was item six review of the bond guarantee program. 00:22:59.470 --> 00:23:00.840 Charter capacity. 00:23:00.840 --> 00:23:01.673 Yeah, 00:23:01.673 --> 00:23:04.910 I had just a couple of questions if staff or somebody can, 00:23:04.910 --> 00:23:07.040 it could answer them or, or answer them later, 00:23:07.040 --> 00:23:11.840 but as any entity conducted an evaluation of the risk of 00:23:11.840 --> 00:23:15.510 charter bond default in light of the situation with Koa that 00:23:15.510 --> 00:23:20.510 we're in now and is now really a good time to open a PSF up 00:23:21.120 --> 00:23:22.443 to more exposure. 00:23:29.620 --> 00:23:30.453 I believe we've got Mr. 00:23:30.453 --> 00:23:34.910 Timmons and some of his stuff on the line or in the meeting, 00:23:34.910 --> 00:23:36.053 hopefully they can. 00:23:37.400 --> 00:23:39.593 And Newton and address your question. 00:23:44.170 --> 00:23:45.020 Can you hear me? 00:23:45.020 --> 00:23:45.853 Yes, sir. 00:23:45.853 --> 00:23:46.840 Thank you. 00:23:46.840 --> 00:23:51.840 So the rating agencies continually assess all the risks to 00:23:52.390 --> 00:23:54.650 the bond guarantee program. 00:23:54.650 --> 00:23:59.650 And we've had several discussions with the rating agencies 00:24:00.060 --> 00:24:05.060 since the COVID activity and inform them of, 00:24:06.320 --> 00:24:10.120 of what TEA was seeing, so that has continually, 00:24:10.120 --> 00:24:12.523 continually been assessed. 00:24:13.620 --> 00:24:14.453 And 00:24:16.750 --> 00:24:21.250 I think they have all the last time they reviewed 00:24:21.250 --> 00:24:22.900 the bond guarantee program. 00:24:22.900 --> 00:24:27.360 They all reaffirmed the AAA rating. 00:24:27.360 --> 00:24:32.360 Now they have not all reaffirmed since covet took part to 00:24:33.640 --> 00:24:38.640 place, but we've had discussions with them. 00:24:41.250 --> 00:24:44.680 So the evaluation has not been done since Cova took place. 00:24:44.680 --> 00:24:49.400 And that means their concern is that, you know, 00:24:49.400 --> 00:24:53.823 we're hearing a lot of parents that are gonna withhold, 00:24:56.130 --> 00:24:59.340 you know, have their kids say at home and, 00:24:59.340 --> 00:25:00.173 and how that went in. 00:25:00.173 --> 00:25:01.006 You know, 00:25:02.970 --> 00:25:03.803 the attendance at the charter schools were for possible 00:25:03.803 --> 00:25:07.667 default leaving us, you know, exposure. 00:25:08.950 --> 00:25:10.573 And they're pretty significant. 00:25:12.350 --> 00:25:13.183 Well, we've, 00:25:13.183 --> 00:25:17.460 we've had discussions with two of the rating agencies and 00:25:17.460 --> 00:25:18.593 they, 00:25:20.570 --> 00:25:24.210 they do formal assessments on their own schedule when, 00:25:24.210 --> 00:25:27.910 when they believe there's a risk and they, 00:25:27.910 --> 00:25:31.683 the rating agencies always have the option of putting any 00:25:33.570 --> 00:25:38.570 issuer on credit watch if they choose to, so they've, 00:25:38.610 --> 00:25:42.983 they've had discussions with us, but have not chosen to 00:25:47.470 --> 00:25:49.623 have not chosen to make any changes. 00:25:51.120 --> 00:25:52.250 Just reminder. 00:25:52.250 --> 00:25:53.083 Yeah. 00:25:55.500 --> 00:25:56.543 Mem Robinson, 00:25:58.240 --> 00:26:00.980 I think it's a fair question to ask, and, 00:26:02.370 --> 00:26:03.530 and just so everybody understands, 00:26:03.530 --> 00:26:07.000 what we're talking about is is that the statute 00:26:10.320 --> 00:26:14.750 requires the State Board of Education to increase capacity 00:26:15.640 --> 00:26:19.927 in, in increments of about 20%, unless we, 00:26:19.927 --> 00:26:23.973 unless we vote to take action to stop that from happening, 00:26:25.130 --> 00:26:28.580 they had said soon is that even though that we may increase 00:26:28.580 --> 00:26:31.790 the capacity, you know, keep in mind that each, 00:26:31.790 --> 00:26:33.730 each bond guarantee on a, 00:26:33.730 --> 00:26:37.520 on a charter school is taken on an individual, but that's, 00:26:37.520 --> 00:26:39.250 and so, you know, 00:26:39.250 --> 00:26:43.400 so we're not talking about generally the mom and pop know 00:26:43.400 --> 00:26:47.080 startup type of charter schools, generally, these are, 00:26:47.080 --> 00:26:48.970 you know, big, you know, 00:26:48.970 --> 00:26:51.570 financially stable charter schools that have a lot of 00:26:51.570 --> 00:26:52.643 financial strength. 00:26:54.090 --> 00:26:58.010 And, and just because we, we increase the capacity, 00:26:58.010 --> 00:27:02.840 it doesn't necessarily mean that we, we automatically, 00:27:02.840 --> 00:27:03.673 you know, 00:27:03.673 --> 00:27:08.420 grant those guarantees that each one of them were taken on 00:27:08.420 --> 00:27:10.310 an individual basis. 00:27:10.310 --> 00:27:11.143 And so there's, 00:27:11.143 --> 00:27:13.683 there hasn't been any evidence that suggests that, that, 00:27:13.683 --> 00:27:15.973 that we need to slow that down. 00:27:20.470 --> 00:27:23.070 Okay, is there any other further discussion on this? 00:27:24.580 --> 00:27:25.413 Mr. 00:27:25.413 --> 00:27:30.413 Chair can be made immediately aware of any major changes in 00:27:30.650 --> 00:27:35.310 enrollment numbers or details, PSF backed charter bonds. 00:27:35.310 --> 00:27:36.740 And if there is a default, 00:27:36.740 --> 00:27:40.563 can SPO you revisit this expansion of capacity. 00:27:46.750 --> 00:27:47.767 I don't know that if you, 00:27:47.767 --> 00:27:50.820 I don't know on the weekend we can back up. 00:27:50.820 --> 00:27:52.243 I don't know the weekend, we can revisit it. 00:27:52.243 --> 00:27:55.090 I think we can slow it down on the next step. 00:27:55.090 --> 00:27:57.470 I don't know that I don't know that you can, 00:27:57.470 --> 00:28:01.610 you don't want you to increase the capacity, you know, 00:28:01.610 --> 00:28:04.157 can you rescind that, that, 00:28:07.730 --> 00:28:08.970 that expansion or, or, 00:28:08.970 --> 00:28:11.883 or go back and re reconsider that question? 00:28:12.820 --> 00:28:13.653 I don't, 00:28:13.653 --> 00:28:16.060 I don't really think that the statute contemplates that. 00:28:16.060 --> 00:28:16.893 I don't think that we could probably, 00:28:16.893 --> 00:28:19.110 I don't think we can do that. 00:28:27.020 --> 00:28:28.870 Yes, I do have a question. 00:28:28.870 --> 00:28:29.703 Thank you. 00:28:31.290 --> 00:28:33.270 So yesterday I was, 00:28:33.270 --> 00:28:37.590 I was listening to the meeting and member Mercer made a 00:28:37.590 --> 00:28:38.423 really, 00:28:40.570 --> 00:28:43.870 he made a statement that I'm a little confused by it. 00:28:43.870 --> 00:28:48.870 He said that the PSF also guarantees bonds for ISD. 00:28:48.890 --> 00:28:53.540 So can you walk me through what happens if a district were 00:28:53.540 --> 00:28:58.010 to default or if, and if a charter were to default, 00:28:58.010 --> 00:29:02.510 how much does the PSF pay for ISD is how much does the PSF 00:29:02.510 --> 00:29:03.683 pay for charters? 00:29:06.790 --> 00:29:08.370 Mr. Kevin? 00:29:08.370 --> 00:29:10.953 I said, that's a good question. 00:29:14.727 --> 00:29:19.040 You know, there, there wasn't, there was a time when, when, 00:29:19.040 --> 00:29:21.640 when when the State Board of Education was not even, 00:29:22.500 --> 00:29:25.530 you know, the first lien holder on these things, 00:29:25.530 --> 00:29:30.100 and we did manage to fix that legislatively, but, 00:29:30.100 --> 00:29:33.190 but that's on charter schools, you know, 00:29:33.190 --> 00:29:36.120 that's exactly why we have a charter school reserve fund. 00:29:36.120 --> 00:29:40.700 And so the reserve fund, you know, 00:29:40.700 --> 00:29:44.670 how that is that that a charter school is going to, 00:29:44.670 --> 00:29:46.880 because of the bond guarantee, 00:29:46.880 --> 00:29:49.513 the charter school realizes a certain savings and a 00:29:49.513 --> 00:29:52.780 percentage of those savings has to ask to be paid into the 00:29:52.780 --> 00:29:54.390 reserve fund. 00:29:54.390 --> 00:29:57.570 And now we have it for that, that is actually paid upfront. 00:29:57.570 --> 00:30:01.240 It's basically a, a form of bond insurance. 00:30:01.240 --> 00:30:05.833 And, and so if at any time, and then we do have a default, 00:30:07.370 --> 00:30:12.370 the reserve fund is there to that in the reserve fund is, 00:30:12.420 --> 00:30:15.540 is, is paid for, by the people who use the program. 00:30:15.540 --> 00:30:19.330 The reserve fund is there as a backup to make sure that the 00:30:19.330 --> 00:30:24.330 permanent school fund will be made hope, the related to ISD. 00:30:24.927 --> 00:30:27.700 You know, we've been doing this since now. 00:30:27.700 --> 00:30:28.570 Let's see 00:30:28.570 --> 00:30:32.050 the voters approved the bond guarantee program in November 00:30:32.050 --> 00:30:33.970 of 1983. 00:30:33.970 --> 00:30:36.553 We've been guaranteed bonds since the spring of 84. 00:30:37.510 --> 00:30:38.730 There's never been a default. 00:30:38.730 --> 00:30:42.330 And there probably never will be because an ISD is a 00:30:42.330 --> 00:30:46.590 governmental subdivision where the taxpayer and so, 00:30:46.590 --> 00:30:49.050 you know, that's fundamentally, 00:30:49.050 --> 00:30:50.990 that's what special makes an ISD in the charter school, 00:30:50.990 --> 00:30:53.840 very different one from the other that, you know, 00:30:53.840 --> 00:30:56.070 charter school doesn't have a tax place. 00:30:56.070 --> 00:30:59.170 They are an entity that, that you're theoretically could, 00:30:59.170 --> 00:31:00.250 could go out of business. 00:31:00.250 --> 00:31:03.990 And that's why we have a reserve fund and essentially ensure 00:31:03.990 --> 00:31:05.740 those bonds with that reserve fund. 00:31:08.210 --> 00:31:10.313 Are there any other questions on this matter? 00:31:11.500 --> 00:31:15.560 Yes, so if I understand Mr. 00:31:15.560 --> 00:31:19.493 Maynard, you, you said that there, 00:31:20.430 --> 00:31:25.430 the reserve fund is charters paying savings 00:31:26.300 --> 00:31:31.300 into back into the PSF, select like an insurance for them, 00:31:31.680 --> 00:31:34.200 because they can essentially go out of business if they, 00:31:34.200 --> 00:31:36.740 if they're because their only revenue stream is enrollment. 00:31:36.740 --> 00:31:40.890 So their enrollment goes down, their reserve funds kick in, 00:31:40.890 --> 00:31:42.070 and that's their insurance, 00:31:42.070 --> 00:31:46.250 because ISD is have to find the money. 00:31:46.250 --> 00:31:50.100 The PSF doesn't guarantee the funds for the ISD, 00:31:50.100 --> 00:31:54.900 but the reserve fund guarantees the money for the charter. 00:31:54.900 --> 00:31:56.480 Did I get that right? 00:31:56.480 --> 00:31:57.313 The reserve fund, 00:31:57.313 --> 00:32:00.090 the reserve fund would only come into play if there was a 00:32:00.090 --> 00:32:00.923 default. 00:32:02.820 --> 00:32:03.653 But the reserve fund is only and only be used 00:32:03.653 --> 00:32:08.453 for a charter. 00:32:09.310 --> 00:32:11.810 I just don't have a reserve fund, that's right. 00:32:11.810 --> 00:32:12.880 Did I get it right? 00:32:12.880 --> 00:32:15.280 That is correct, that's how the law is written 00:32:23.770 --> 00:32:26.470 When patent line launched on there. 00:32:26.470 --> 00:32:29.650 The reason for the passes of this, again, 00:32:29.650 --> 00:32:30.880 I guess the easy question is, 00:32:30.880 --> 00:32:33.940 have we ever had the faults in public school and if we ever 00:32:33.940 --> 00:32:35.280 had any faults, no. 00:32:35.280 --> 00:32:36.113 Right. 00:32:36.113 --> 00:32:36.993 Have we ever had a default in charter school? 00:32:36.993 --> 00:32:39.510 No. 00:32:39.510 --> 00:32:40.343 The reason for their fund was to ensure passage, 00:32:40.343 --> 00:32:43.700 it was unique. 00:32:43.700 --> 00:32:44.610 And I shared yesterday. 00:32:44.610 --> 00:32:46.730 We've been criticized as a state Board. 00:32:46.730 --> 00:32:49.090 We made the criteria if you are, 00:32:49.090 --> 00:32:51.400 if you're one of the 1200 ISD, 00:32:51.400 --> 00:32:53.970 if you're a number one in the state for fiscal 00:32:53.970 --> 00:32:56.390 responsibility, if for number 1200 or state, 00:32:56.390 --> 00:33:00.710 if you pass a bond, we back you up to support you. 00:33:00.710 --> 00:33:03.130 We've done that either the best or the weakest, 00:33:03.130 --> 00:33:06.930 but the charters do not have a tax base, they don't do that. 00:33:06.930 --> 00:33:09.673 So to ensure passage, we did two things. 00:33:11.300 --> 00:33:12.133 And Mr. Mayor, please, if I'm wrong, incredibly, 00:33:13.290 --> 00:33:14.123 we did two things, we made 00:33:14.123 --> 00:33:16.920 the qualifications so high and only 00:33:16.920 --> 00:33:20.570 the strongest financial starters get a charter to pass that 00:33:20.570 --> 00:33:21.730 this has only been a few years old. 00:33:21.730 --> 00:33:24.080 We made it the qualifications so high, 00:33:24.080 --> 00:33:27.480 it only the strongest we've been criticized as a state Board 00:33:27.480 --> 00:33:30.440 because not all charters can do this only the strongest 00:33:30.440 --> 00:33:31.273 charters. 00:33:31.273 --> 00:33:33.770 And that is not a requirement in other public schools. 00:33:33.770 --> 00:33:37.380 And we also asked for this fund that even with the strongest 00:33:37.380 --> 00:33:39.780 charter, they invest in a fund. 00:33:39.780 --> 00:33:42.250 If they should default, they pay it. 00:33:42.250 --> 00:33:44.750 I think the public schools, they default, we pay it, 00:33:44.750 --> 00:33:47.930 you know, and it has not been a diff fault, but again, 00:33:47.930 --> 00:33:50.433 to ensure passage of this, which is unique, 00:33:51.890 --> 00:33:53.520 what I call the one.zero, 00:33:53.520 --> 00:33:55.920 because I think there'll be a $2 zero in the future, again, 00:33:55.920 --> 00:33:57.030 we did two things. 00:33:57.030 --> 00:33:59.830 We made the qualifications so high that only the most 00:33:59.830 --> 00:34:03.340 qualified financially strongest charters could even qualify. 00:34:03.340 --> 00:34:06.750 And they set aside a fund that even they, if they, 00:34:06.750 --> 00:34:08.040 if they defaulted, 00:34:08.040 --> 00:34:10.010 there was a fun there to help pay for that. 00:34:10.010 --> 00:34:12.380 If I'm wrong Holland or Tom, please correct me. 00:34:12.380 --> 00:34:14.467 But again, that was doing sure passage. 00:34:14.467 --> 00:34:16.953 And those two things are unique to charters. 00:34:18.920 --> 00:34:19.753 Right? 00:34:21.530 --> 00:34:22.543 To clarify, 00:34:28.310 --> 00:34:30.560 we're not all has property. 00:34:35.440 --> 00:34:40.440 It has a cap rolls things that can be solved for a default. 00:34:40.870 --> 00:34:44.910 Someone, in fact, they have their own insurance by 00:34:57.470 --> 00:34:58.303 to fall. 00:35:01.040 --> 00:35:01.873 Also. 00:35:03.320 --> 00:35:05.400 Also as a member, 00:35:05.400 --> 00:35:07.850 Robinson was talking about during this particular time of 00:35:07.850 --> 00:35:11.333 Colby Cole, Vicki, if it affects the economic life. 00:35:13.610 --> 00:35:14.443 It's not. 00:35:14.443 --> 00:35:16.450 Fair in a sense what we listened to Mr. 00:35:16.450 --> 00:35:17.283 Timmons in his presence. 00:35:17.283 --> 00:35:19.640 Sensation, where we felt that. 00:35:19.640 --> 00:35:24.640 Bring any home to the portfolio, so as we listened to our, 00:35:24.750 --> 00:35:29.750 our, our advisors, as we listened to our executive director, 00:35:30.230 --> 00:35:32.940 they gave us some assurity and that we were in a good place 00:35:32.940 --> 00:35:35.510 and moving forward and having an audit. 00:35:35.510 --> 00:35:38.110 20%, we certainly would. 00:35:38.110 --> 00:35:39.420 Revisit that again. 00:35:39.420 --> 00:35:42.570 And when that time comes again in a couple of years, 00:35:42.570 --> 00:35:46.400 but we feel very confident that we want to have no loss to 00:35:46.400 --> 00:35:49.710 the fund begin again, cause as the other member said, 00:35:49.710 --> 00:35:51.860 it's extremely difficult to qualify. 00:35:51.860 --> 00:35:53.680 And then during this time of COVID, 00:35:53.680 --> 00:35:55.990 that that bar is even going to go high. 00:35:55.990 --> 00:36:00.770 And so we were not afraid to have an automatic role of 20%. 00:36:00.770 --> 00:36:03.660 And I would chime in also as I went back and watched the PSF 00:36:03.660 --> 00:36:04.710 committee last night, 00:36:04.710 --> 00:36:07.390 there was a pretty robust discussion on that issue. 00:36:07.390 --> 00:36:09.100 I didn't see Mr. Meyer pop on there. 00:36:09.100 --> 00:36:09.933 Did he have, 00:36:09.933 --> 00:36:14.620 did you have any comments on the specifics if folks wanted 00:36:14.620 --> 00:36:18.270 to look in section 45 dot Oh six, 00:36:18.270 --> 00:36:22.560 one of the education code contemplates is a mechanism for 00:36:22.560 --> 00:36:24.613 reimbursement of the funds. 00:36:25.610 --> 00:36:29.990 If I default word to take place in the PSF or the reserve 00:36:29.990 --> 00:36:31.890 fund has to issue bonds, 00:36:31.890 --> 00:36:35.680 it authorizes the Commissioner to essentially intercept 00:36:35.680 --> 00:36:38.830 state funds that are owed to the school district or charter 00:36:38.830 --> 00:36:43.690 school and to pay back the PSF and the reserve fund for 00:36:43.690 --> 00:36:44.550 school districts, 00:36:44.550 --> 00:36:47.980 the Commissioner's office also authorized to order them to 00:36:47.980 --> 00:36:51.343 set a sufficient tax rate to, to make payments. 00:36:54.380 --> 00:36:55.413 If Ms. Kay can fall. 00:36:58.260 --> 00:36:59.710 Hold on just a second, Jenna. 00:37:00.960 --> 00:37:02.650 Thanks, you. 00:37:02.650 --> 00:37:06.780 Okay, as we get to after we finish this discussion, 00:37:06.780 --> 00:37:08.940 my question is about how we adopt this. 00:37:08.940 --> 00:37:12.420 We go through the normal motion and second and adoption 00:37:15.270 --> 00:37:17.680 two items individually. 00:37:17.680 --> 00:37:18.513 Right? 00:37:18.513 --> 00:37:23.513 This is posted on your materials as a report. 00:37:23.930 --> 00:37:26.477 So I don't know if there was a motion. 00:37:26.477 --> 00:37:30.900 I have to go back and look at the minutes from that 00:37:30.900 --> 00:37:35.900 committee, I was not expecting y'all to go here today. 00:37:36.720 --> 00:37:38.747 So give me a minute and I'll come back. 00:37:38.747 --> 00:37:41.120 I want to check with that ear that looks like number six 00:37:41.120 --> 00:37:42.360 we're talking about now is or review, 00:37:42.360 --> 00:37:44.540 but seven might be different cause that's an approval. 00:37:44.540 --> 00:37:48.047 So Mr. chairman, Mr. 00:37:50.880 --> 00:37:51.810 Binder. 00:37:51.810 --> 00:37:52.650 Okay. 00:37:52.650 --> 00:37:54.140 Okay, thank you. 00:37:54.140 --> 00:37:54.973 Okay. 00:37:54.973 --> 00:37:57.060 So I want to make sure that I'm a hundred percent this, 00:37:57.060 --> 00:37:58.230 so thank you. 00:37:58.230 --> 00:38:01.190 Remember Alan for explaining it the way that you did. 00:38:01.190 --> 00:38:03.710 So there's a reserve fund. 00:38:03.710 --> 00:38:06.830 Should there be a default and it's made very clear. 00:38:06.830 --> 00:38:07.670 Remember Hardy, thank you. 00:38:07.670 --> 00:38:09.640 There's never been a charter default. 00:38:09.640 --> 00:38:11.670 I don't believe there's ever been an ISD default either, 00:38:11.670 --> 00:38:14.390 but we do have a reserve fund just in case. 00:38:14.390 --> 00:38:19.390 So how much is in the reserve fund to cover this $2 billion 00:38:19.740 --> 00:38:20.803 in guarantees? 00:38:22.350 --> 00:38:23.370 Or do you want to answer that? 00:38:23.370 --> 00:38:24.543 Or Mr. Killen's 00:38:28.200 --> 00:38:31.380 reserve fund today is about 35 billion. 00:38:31.380 --> 00:38:35.220 And just to clarify, one thing, any payments, 00:38:35.220 --> 00:38:36.100 the permanent school. 00:38:36.100 --> 00:38:41.100 Fund makes are only made on the next amount owed. 00:38:41.470 --> 00:38:46.470 So if an interest payment is due, we don't cover the whole 00:38:49.360 --> 00:38:51.070 debt issuance over the life of it. 00:38:51.070 --> 00:38:53.650 We just cover the current payment that's due. 00:38:53.650 --> 00:38:57.300 And so it is about 35 billion, 00:38:57.300 --> 00:38:59.323 35 million in the reserve fund. 00:39:00.780 --> 00:39:03.410 So I want to make sure I understood, Mr. Timson, 00:39:03.410 --> 00:39:06.620 thank you for your patience and helping me understand this. 00:39:06.620 --> 00:39:11.620 The, the next payment due is 35 million, right? 00:39:14.710 --> 00:39:16.783 And that's in the reserve fund. 00:39:19.200 --> 00:39:22.290 If 35 million was the next payment, 00:39:22.290 --> 00:39:24.720 they defaulted that would come from the reserve fund. 00:39:24.720 --> 00:39:27.410 That would be the first call. 00:39:27.410 --> 00:39:32.410 If it exceeded that, then it would either move to, 00:39:34.340 --> 00:39:36.800 well, the permanent school fund would make the payment, 00:39:36.800 --> 00:39:41.693 but we also have the claim on any real estate assets. 00:39:44.860 --> 00:39:49.860 So for clarification, Mr. Timmons, for example, 00:39:50.370 --> 00:39:53.580 if I bought a car and I defaulted on a car and had a $500 a 00:39:53.580 --> 00:39:56.770 month note in this scenario, 00:39:56.770 --> 00:40:00.190 charter guarantee fund would start making payments on that 00:40:00.190 --> 00:40:02.990 note, but not pay off the entire car. 00:40:02.990 --> 00:40:03.823 Is that correct? 00:40:03.823 --> 00:40:04.853 That's correct. 00:40:07.510 --> 00:40:09.550 So like gap insurance. 00:40:09.550 --> 00:40:10.730 Okay. 00:40:10.730 --> 00:40:15.730 So we think that 35 million in reserve is a good start for 00:40:16.100 --> 00:40:18.490 2 billion in guarantees. 00:40:18.490 --> 00:40:20.093 That's that's what we're saying. 00:40:22.840 --> 00:40:24.737 That that's what statute put in place 00:40:24.737 --> 00:40:29.340 to be the first call. 00:40:29.340 --> 00:40:33.200 If it exceeds that then the permanent school fund would, 00:40:33.200 --> 00:40:38.200 would take that call or the next portion above 35 million. 00:40:39.610 --> 00:40:43.317 Okay, thank you for that clarification. 00:40:45.910 --> 00:40:49.200 Another question, can I ask my question now? 00:40:49.200 --> 00:40:52.940 Or do you want to go through the other questions members 00:40:52.940 --> 00:40:54.003 with other questions? 00:40:56.170 --> 00:40:57.003 Thank you. 00:40:58.290 --> 00:41:02.390 So in, in doing my research, 00:41:02.390 --> 00:41:07.360 trying to understand that because ISD have property and they 00:41:07.360 --> 00:41:10.620 are a taxing entity, they do not solely 00:41:12.560 --> 00:41:17.080 depend on enrollment for a revenue stream where as we're 00:41:17.080 --> 00:41:22.080 charters only rely on enrollment for their revenue stream, 00:41:23.070 --> 00:41:28.070 what is the threshold required for each bond to ensure 00:41:29.500 --> 00:41:31.493 timely payments? 00:41:37.360 --> 00:41:40.030 The each bond before they get the guarantee has 00:41:40.030 --> 00:41:45.030 to be rated triple B by the rating agencies. 00:41:45.520 --> 00:41:48.913 So that's the first standard to get the guarantee, 00:41:57.990 --> 00:42:01.590 if the charter school determines they don't have the funds 00:42:01.590 --> 00:42:06.590 to make the payments that is when they'd make the claim. 00:42:07.060 --> 00:42:12.060 We don't have any control over their decisions on when 00:42:12.990 --> 00:42:16.040 they've, they've got enough funding to make the payments. 00:42:16.040 --> 00:42:17.650 Okay. 00:42:17.650 --> 00:42:19.880 And so you, I think you said in, in 00:42:19.880 --> 00:42:24.880 in the last answer that if a charter cannot pay it back, 00:42:25.780 --> 00:42:27.740 the State Board of Education or, 00:42:27.740 --> 00:42:32.740 or the state has the ability to, to take the real estate, 00:42:33.040 --> 00:42:34.753 just like the ISD. 00:42:35.990 --> 00:42:38.863 So that that's also part of how they cover their bond. 00:42:40.330 --> 00:42:42.150 With ISD. 00:42:42.150 --> 00:42:46.170 The permanent school fund would have the first claim on next 00:42:46.170 --> 00:42:51.120 payments from the state with charters. 00:42:51.120 --> 00:42:53.880 We do have the additional protection of, 00:42:53.880 --> 00:42:57.510 of any real estate assets that they own 00:43:01.220 --> 00:43:02.053 question. 00:43:06.920 --> 00:43:08.587 Any other questions? 00:43:09.450 --> 00:43:10.283 Yes, sir. 00:43:10.283 --> 00:43:13.130 Thank you, my concern is because they're, 00:43:13.130 --> 00:43:18.103 they solely rely on enrollment and we don't know what August 00:43:19.280 --> 00:43:22.620 is going to look like for any school district or, or, 00:43:22.620 --> 00:43:24.023 or charter operator. 00:43:27.500 --> 00:43:30.870 Do we have some kind of, 00:43:30.870 --> 00:43:35.470 of review in August a review in September? 00:43:35.470 --> 00:43:39.023 Is there something that tells us there's a red flag here? 00:43:40.020 --> 00:43:43.340 Is there something that, that some kind of, 00:43:43.340 --> 00:43:47.620 of oversight and protection that we have should enrollment 00:43:47.620 --> 00:43:50.550 numbers be dramatically lower than, 00:43:50.550 --> 00:43:53.800 than what they did back in, in may? 00:43:53.800 --> 00:43:57.930 When, when, 00:43:57.930 --> 00:44:01.713 when the evaluations on bond defaults were performed, 00:44:05.360 --> 00:44:06.193 Well, 00:44:06.193 --> 00:44:09.080 the State Board of Education re receive any kind of report 00:44:09.080 --> 00:44:13.910 on potential red flags or occurring red flags after a school 00:44:13.910 --> 00:44:15.683 is back in session for the fall. 00:44:19.200 --> 00:44:24.070 I believe those are all issues that are assessed by the 00:44:24.070 --> 00:44:29.070 agency of the PSF office is, is not involved in, 00:44:29.500 --> 00:44:32.800 in the ongoing. 00:44:32.800 --> 00:44:35.423 Assessment of individual charter schools. 00:44:37.610 --> 00:44:40.110 This brings into the same point you're making Ms. Perez. 00:44:40.110 --> 00:44:40.943 But, you know, 00:44:40.943 --> 00:44:42.550 as we talk about the uncertainties of what's going on in the 00:44:42.550 --> 00:44:44.320 fall and where students are going to be, 00:44:44.320 --> 00:44:45.490 where they're going to be at home, 00:44:45.490 --> 00:44:48.430 or they're going to be in classroom there's if they 00:44:48.430 --> 00:44:50.590 participate in learning remotely from home, 00:44:50.590 --> 00:44:52.430 they're still enrolled in a district, 00:44:52.430 --> 00:44:55.720 whether it's a charter or ISD, so it's not a funding issue, 00:44:55.720 --> 00:44:59.860 whether they either now, if they completely disenrolled, 00:44:59.860 --> 00:45:01.017 that would be another issue, but I don't think that's, 00:45:01.017 --> 00:45:03.703 what's being contemplated here shortly. 00:45:04.660 --> 00:45:06.833 All right, any further questions, miss betters? 00:45:08.610 --> 00:45:12.663 Is there a continuing disclosure requirement? 00:45:17.820 --> 00:45:21.487 Does the agency bring that to the SBO since, 00:45:22.570 --> 00:45:25.490 since the charters would be reporting to the agency and the 00:45:25.490 --> 00:45:28.590 PSF office doesn't control that, or does it monitor that? 00:45:28.590 --> 00:45:33.170 And TEA is responsible for that monitoring is there is every 00:45:33.170 --> 00:45:36.890 continuing disclosure report and does TEA bring that to our 00:45:36.890 --> 00:45:37.723 attention? 00:45:41.230 --> 00:45:42.063 So, Ms. Bettas, 00:45:42.063 --> 00:45:45.650 it sounds like that may be a question we need to ask of the 00:45:45.650 --> 00:45:48.490 charter staff who are not with us today. 00:45:48.490 --> 00:45:50.290 If you wouldn't mind sending me an email, 00:45:50.290 --> 00:45:54.580 I'll get it to the right staff member to get your response. 00:45:54.580 --> 00:45:59.450 Thank you, Monica questions. 00:45:59.450 --> 00:46:00.283 Thank you. 00:46:00.283 --> 00:46:01.890 Yeah, I'm going to go next. 00:46:01.890 --> 00:46:05.520 I had, yeah. 00:46:05.520 --> 00:46:07.873 Michelle is Jerry Ellis. 00:46:08.980 --> 00:46:12.600 So you know how this, just to clarify how this, 00:46:12.600 --> 00:46:16.350 this work in committee, essentially, we, 00:46:16.350 --> 00:46:18.770 we chose to take no action, there was no one, there, 00:46:18.770 --> 00:46:22.760 there was no motion to home. 00:46:22.760 --> 00:46:27.640 The statutorily mandated expansion in, 00:46:27.640 --> 00:46:30.590 so some of the committee took no action. 00:46:30.590 --> 00:46:31.423 And so 00:46:31.423 --> 00:46:36.423 I would suppose that the recommendation from the committee 00:46:36.860 --> 00:46:39.033 is to take the more techno action. 00:46:41.730 --> 00:46:43.947 So Ms. Kay, does, is there, 00:46:45.150 --> 00:46:46.960 is there any further action that needs to happen for this 00:46:46.960 --> 00:46:47.793 sport? 00:46:47.793 --> 00:46:48.626 Okay. 00:46:48.626 --> 00:46:49.680 Or. 00:46:49.680 --> 00:46:51.030 There is. 00:46:51.030 --> 00:46:54.790 Not as I understand the program, 00:46:54.790 --> 00:46:58.620 which I won't freely can stuff I knew nothing about before 00:46:58.620 --> 00:47:02.500 this conversation started, so I'm not an expert, 00:47:02.500 --> 00:47:07.500 but it was an automatic thing that was going to happen that 00:47:08.080 --> 00:47:13.080 the bond levels were going to be changed automatically. 00:47:15.510 --> 00:47:20.020 So if there's no desire to change that automatic process, 00:47:20.020 --> 00:47:23.440 there would be no action for the Board to take. 00:47:23.440 --> 00:47:27.740 You could formally say, we're not going to take any action, 00:47:27.740 --> 00:47:30.700 but that's the same as taking no action. 00:47:30.700 --> 00:47:31.533 At all. 00:47:36.060 --> 00:47:38.810 Are there any other comments or questions on this item? 00:47:42.640 --> 00:47:45.670 Hold on Mr. Cortez maximum dr. 00:47:45.670 --> 00:47:46.503 Robinson. 00:47:51.730 --> 00:47:54.180 Thank you, yeah, my hands been up for, for a bit. 00:47:54.180 --> 00:47:56.873 So what's the amount of money that we're talking about. 00:47:56.873 --> 00:48:01.873 This is 20% an increase is how much in available money for 00:48:03.920 --> 00:48:08.043 new facilities for charter schools? 00:48:10.650 --> 00:48:12.330 Yeah, my first wife, 00:48:12.330 --> 00:48:16.927 the 20% increase is about 1.1, 00:48:18.830 --> 00:48:23.363 5 billion increase in capacity or charters. 00:48:24.810 --> 00:48:27.280 How much do they currently still have available 00:48:29.500 --> 00:48:34.500 currently have 1.9 billion available still available? 00:48:34.910 --> 00:48:36.340 Yes. 00:48:36.340 --> 00:48:40.870 And we want to add another billion plus plus to that pot of 00:48:40.870 --> 00:48:42.310 money. 00:48:42.310 --> 00:48:44.963 And we have 35 million. 00:48:46.240 --> 00:48:47.190 Yes. 00:48:47.190 --> 00:48:48.023 Timmins, 00:48:48.023 --> 00:48:51.110 which you say is the first call in the event of any default, 00:48:51.110 --> 00:48:52.590 right? 00:48:52.590 --> 00:48:55.000 It's correct, and then after that, 00:48:55.000 --> 00:48:59.397 the PSF takes the hit on any additional money outside of 00:49:00.590 --> 00:49:05.420 whatever the replay that if they're able to be liquidated or 00:49:05.420 --> 00:49:08.123 pulled off to another ISD or charter, 00:49:09.750 --> 00:49:14.360 we would take the hip for the difference at the PSF, right. 00:49:14.360 --> 00:49:17.980 X's taxpayers would take that hit on the PSF. 00:49:17.980 --> 00:49:19.150 Is that correct? 00:49:20.140 --> 00:49:20.973 That's correct. 00:49:20.973 --> 00:49:25.973 With the clarification that we do have claim on real estate. 00:49:26.250 --> 00:49:30.850 And just to clarify the standards, 00:49:30.850 --> 00:49:34.830 the SPOC may decline or reduce the face in amount for a 00:49:34.830 --> 00:49:35.663 year, 00:49:35.663 --> 00:49:40.663 if one SPOA determines that increasing the charter capacity 00:49:40.860 --> 00:49:43.980 would likely result in a negative impact on bond ratings for 00:49:43.980 --> 00:49:48.760 school districts or charter districts seeking the guarantee 00:49:48.760 --> 00:49:53.070 or two, one or more guaranteed charter bonds default. 00:49:53.070 --> 00:49:57.180 So those are the two standards that were established in 00:49:57.180 --> 00:49:58.023 statute. 00:50:01.360 --> 00:50:06.360 It seems more I think about it and the uncertainty of the 00:50:07.420 --> 00:50:09.313 times that we're currently living in, 00:50:10.370 --> 00:50:14.080 they still have 1,000,000,009 available. 00:50:14.080 --> 00:50:16.760 Why are we going to make another billion and a half 00:50:16.760 --> 00:50:19.100 available for facilities? 00:50:19.100 --> 00:50:22.990 When you have the Commissioner of education, 00:50:22.990 --> 00:50:26.793 for those of you that were on that call, that he made. 00:50:28.050 --> 00:50:30.080 Where he made the big announcement, 00:50:30.080 --> 00:50:32.980 where the federal government's giving over a billion 00:50:32.980 --> 00:50:36.670 dollars, that's supposed to go directly to as, 00:50:36.670 --> 00:50:39.440 but the Commissioner is making a choice not to give it to 00:50:39.440 --> 00:50:41.010 these school districts, 00:50:41.010 --> 00:50:45.580 but to keep it reimbursed them at a rate of 75%, 00:50:45.580 --> 00:50:48.153 not a hundred percent, but 75%, 00:50:50.800 --> 00:50:53.970 Because they want to make sure that they don't take a hit in 00:50:53.970 --> 00:50:57.330 the next biennium, the way they did in 2011, 00:50:57.330 --> 00:51:01.040 when they cut $5.4 billion from public education. 00:51:01.040 --> 00:51:05.850 For me approving something like this is a little scary, 00:51:05.850 --> 00:51:10.030 because I think all of us know the uncertainty that is going 00:51:10.030 --> 00:51:15.030 on in Texas schools, public charter, private, or otherwise. 00:51:18.680 --> 00:51:21.600 And if we're talking about a new brick and mortar, 00:51:21.600 --> 00:51:22.860 and you mentioned it, Mr. 00:51:22.860 --> 00:51:25.920 Ellis said, doesn't have to do anything with, with school, 00:51:25.920 --> 00:51:28.310 not occurring, school's still going to occur. 00:51:28.310 --> 00:51:32.170 If, if a school offers an online program, you know, this, 00:51:32.170 --> 00:51:33.880 they, they can take this, 00:51:33.880 --> 00:51:37.700 these kids from big geographic regions, 00:51:37.700 --> 00:51:39.070 particularly in the charter schools, 00:51:39.070 --> 00:51:42.870 when they ask for these, these larger geographic, 00:51:42.870 --> 00:51:46.400 they don't necessarily need to have a brand new brick and 00:51:46.400 --> 00:51:49.060 mortar facility to get this done. 00:51:49.060 --> 00:51:50.630 It seems irresponsible, 00:51:50.630 --> 00:51:54.010 or this body to give them another billion five when they 00:51:54.010 --> 00:51:59.010 still have almost 2 billion left with these uncertain times. 00:51:59.380 --> 00:52:03.660 And I don't think that I could support, 00:52:03.660 --> 00:52:05.883 and I don't think it would be prudent of this Board. 00:52:05.883 --> 00:52:07.160 I think it'd be reckless. 00:52:07.160 --> 00:52:10.470 And they're responsible of this Board to do and take this 00:52:10.470 --> 00:52:11.680 action at that time. 00:52:11.680 --> 00:52:15.850 Not knowing because we have no way of knowing what this 00:52:15.850 --> 00:52:20.470 could cause a district that might need to take a bond or how 00:52:20.470 --> 00:52:25.370 their ratings may be impacted in the future, there is no, 00:52:25.370 --> 00:52:26.203 no, 00:52:27.720 --> 00:52:30.530 I don't know crystal ball that will tell us what's going to 00:52:30.530 --> 00:52:32.160 happen. 00:52:32.160 --> 00:52:34.850 They talk about synchronous and asynchronous systems, 00:52:34.850 --> 00:52:38.760 but with what's going on right now and with the Governor 00:52:38.760 --> 00:52:41.460 rolling back some of his own requirements after he 00:52:41.460 --> 00:52:44.740 prematurely opened up Texas, we don't know if, 00:52:44.740 --> 00:52:48.150 if the he's gonna shut schools down in the first month of 00:52:48.150 --> 00:52:53.150 school because this mass outbreak or because of 00:52:55.030 --> 00:52:56.230 rightfully so, 00:52:56.230 --> 00:53:00.960 me hearing that teacher organizations may go on strike as a 00:53:00.960 --> 00:53:03.730 result of, of Texas, 00:53:03.730 --> 00:53:07.570 potentially putting them in harm's way them and, 00:53:07.570 --> 00:53:11.960 and our kids, you know, as a re as a result of of, 00:53:11.960 --> 00:53:15.350 of our Commissioner, not mandating face coverings of, 00:53:15.350 --> 00:53:19.490 of our students at the behest of, of this Governor. 00:53:19.490 --> 00:53:22.710 And so all of these things and this uncertainty that is 00:53:22.710 --> 00:53:27.000 going on in this state gives me to implore all of you to 00:53:27.000 --> 00:53:27.833 say, 00:53:27.833 --> 00:53:32.800 let's put a pin in this item until we know what is happening 00:53:32.800 --> 00:53:34.950 in the fall, and maybe take it up, not in September, 00:53:34.950 --> 00:53:36.073 but in November. 00:53:37.920 --> 00:53:41.790 And if we see that school and public education is going in 00:53:41.790 --> 00:53:45.760 the right direction, then we re we revisit it in November. 00:53:45.760 --> 00:53:46.640 We'll know, by then, 00:53:46.640 --> 00:53:49.170 very clearly what's happening across the state. 00:53:49.170 --> 00:53:53.520 I'm not saying don't do this because clearly some of you 00:53:53.520 --> 00:53:56.160 want to, I'm saying, 00:53:56.160 --> 00:53:59.630 let's just table it until November until we know what the 00:53:59.630 --> 00:54:03.460 first few months of this next academic school year might 00:54:03.460 --> 00:54:04.293 look like. 00:54:05.150 --> 00:54:05.983 Mr. Miner did want to respond to that. 00:54:05.983 --> 00:54:08.910 But I do want to call some members that we are talking about 00:54:08.910 --> 00:54:11.170 a review of the bond guarantee program for capacity. 00:54:11.170 --> 00:54:13.760 I think we're getting a little bit outside into just a 00:54:13.760 --> 00:54:16.710 bigger discussion about church in general. 00:54:16.710 --> 00:54:20.120 And the other point that's brought up is whatever future 00:54:20.120 --> 00:54:23.540 capacity is going to come up in the fall with our students, 00:54:23.540 --> 00:54:26.890 there's been no discussion about this enrolling students 00:54:26.890 --> 00:54:27.723 from schools, 00:54:27.723 --> 00:54:31.010 which would lead to a decrease in funding for schools. 00:54:31.010 --> 00:54:34.760 It's a matter of where the educational really educational 00:54:34.760 --> 00:54:37.930 will take place, which would apologize. 00:54:37.930 --> 00:54:41.270 And maybe you misunderstood what I did say it that way. 00:54:41.270 --> 00:54:43.050 Maybe I'm maybe I said it incorrectly. 00:54:43.050 --> 00:54:46.500 What I'm referring to is when we give this new money to an 00:54:46.500 --> 00:54:49.390 charter school, to, to build a new facility, 00:54:49.390 --> 00:54:52.050 when they qualify through the PSF program, 00:54:52.050 --> 00:54:53.740 that's been enacted 00:54:56.680 --> 00:54:58.850 the amount of time that they give that ISD. 00:54:58.850 --> 00:55:01.160 When they build this facility, 00:55:01.160 --> 00:55:04.680 generally isn't enough time for them to do what they need to 00:55:04.680 --> 00:55:06.610 do with their contract employees, 00:55:06.610 --> 00:55:09.700 as opposed to an ISD that has an at will employee. 00:55:09.700 --> 00:55:14.630 And so you've got this ISD that might have this new charter 00:55:14.630 --> 00:55:16.990 under this new bond under this bond guarantee, 00:55:16.990 --> 00:55:20.200 open up the facility a few miles away, 00:55:20.200 --> 00:55:22.050 and they'll lose a couple hundred students. 00:55:22.050 --> 00:55:25.800 And that school district has all of these employees under a 00:55:25.800 --> 00:55:26.930 term contract. 00:55:26.930 --> 00:55:30.480 And they may have school school employees that don't have a 00:55:30.480 --> 00:55:33.020 physical classroom or enough students to be taught. 00:55:33.020 --> 00:55:37.190 And so the burden on those traditional ISD, 00:55:37.190 --> 00:55:39.780 because that charter opens up right next to it, 00:55:39.780 --> 00:55:43.180 can't create that this financial volatility that I'm 00:55:43.180 --> 00:55:46.860 referring to that might trigger some things that Mr Timmins 00:55:46.860 --> 00:55:48.000 is talking about. 00:55:48.000 --> 00:55:51.870 If they ever need to go out and get any kind of bond for 00:55:51.870 --> 00:55:55.470 upgrading their facilities or modernizing their facilities 00:55:55.470 --> 00:55:57.150 or doing anything of that nature. 00:55:57.150 --> 00:55:59.440 And so those are the types of things that I refer to you. 00:55:59.440 --> 00:56:00.560 And Mr. 00:56:00.560 --> 00:56:04.200 Cortez also do want to point out that the bond guarantee 00:56:04.200 --> 00:56:08.380 program does not give charters funds to build new brick and 00:56:08.380 --> 00:56:13.380 mortars, where they're doing some pay less interest, 00:56:13.740 --> 00:56:16.760 but the PSF is not giving those just trying to, 00:56:16.760 --> 00:56:18.937 so I'm going to call him Mr. 00:56:20.770 --> 00:56:23.290 Chairman, if I want to make them, I mean, we're not, 00:56:23.290 --> 00:56:24.270 we're not giving anybody. 00:56:24.270 --> 00:56:26.040 Money, we're only, 00:56:26.040 --> 00:56:30.010 only guaranteeing the bonds in the bond guarantee them, 00:56:30.010 --> 00:56:32.960 enables them to pay a lower interest rate and, 00:56:32.960 --> 00:56:36.210 and keep in mind that, you know, 00:56:36.210 --> 00:56:40.450 they still have to meet all the criteria and the benchmarks 00:56:40.450 --> 00:56:43.150 on that are extremely high. 00:56:43.150 --> 00:56:46.540 But also I would just, just remind the Board as, as that, 00:56:46.540 --> 00:56:47.373 you know, Mr. 00:56:47.373 --> 00:56:48.206 Timmins has, 00:56:48.206 --> 00:56:52.640 has given us with the statutory criteria or in terms of, 00:56:53.960 --> 00:56:57.950 of denying that expansion, and there are, there are two, 00:56:57.950 --> 00:57:02.200 and none of those things have come into play. 00:57:02.200 --> 00:57:06.630 You know, there's not a no, there, there's not 00:57:08.550 --> 00:57:13.550 the potential of our, of our writing being reduced. 00:57:15.180 --> 00:57:17.870 And neither have there been any defaults, those are, 00:57:17.870 --> 00:57:21.630 those are the two reasons that authorized this, 00:57:21.630 --> 00:57:24.490 this Board to deny that expansion, 00:57:24.490 --> 00:57:26.177 none of those things have happened. 00:57:26.177 --> 00:57:27.910 And so for us to, to, 00:57:27.910 --> 00:57:32.910 to deny that expansion would be contrary to what's written 00:57:33.040 --> 00:57:33.873 in the law. 00:57:35.000 --> 00:57:37.060 I saw a, and it will pop up there. 00:57:37.060 --> 00:57:39.540 And for the Board members who don't often go to the PSF 00:57:39.540 --> 00:57:41.493 committees and watch these discussions, 00:57:42.560 --> 00:57:45.450 Chuck is our fiduciary council of the Board for district 00:57:45.450 --> 00:57:48.460 council, do you have any comments to this 00:57:51.070 --> 00:57:51.903 point I was gonna make? 00:57:51.903 --> 00:57:53.700 And Mr. Maynard made the point as well, 00:57:53.700 --> 00:57:55.950 in terms of just from a fiduciary standpoint, 00:57:55.950 --> 00:57:56.900 obviously following 00:57:58.810 --> 00:58:01.530 what's authorized under the legislature for your, 00:58:01.530 --> 00:58:04.717 your powers to make any decision with respect to this. 00:58:04.717 --> 00:58:06.270 And he said, as he stated, 00:58:06.270 --> 00:58:09.090 the two standards were there not to be a determination that 00:58:09.090 --> 00:58:12.450 he preached in the capacity would result in a negative 00:58:12.450 --> 00:58:14.470 impact of the bonds and Mr. 00:58:14.470 --> 00:58:17.250 Timmons and provide information to the committee that that 00:58:17.250 --> 00:58:18.770 would not be the case. 00:58:18.770 --> 00:58:20.147 And there also what had to be a default, 00:58:20.147 --> 00:58:24.210 and that hadn't been the case either, so as Mr. 00:58:24.210 --> 00:58:28.630 Maynard point out there's statutory limitations as to the 00:58:28.630 --> 00:58:31.350 ability of the SBA to take any action with respect to this 00:58:31.350 --> 00:58:32.460 matter. 00:58:32.460 --> 00:58:35.453 Mr. Timmons, how can you be certain that. 00:58:36.660 --> 00:58:39.010 Please go through the chair if you'd like to. 00:58:40.650 --> 00:58:43.363 I didn't really, I wasn't finished with my questioning, 00:58:44.390 --> 00:58:46.730 but Mr. Kimmons, 00:58:46.730 --> 00:58:51.610 how can you be sure that next year, 00:58:51.610 --> 00:58:54.390 next school year or middle of next school year, 00:58:54.390 --> 00:58:56.910 or towards the end of next school year, 00:58:56.910 --> 00:59:01.350 we may not have an issue around 00:59:04.490 --> 00:59:06.770 what Mr. Campbell and Mr. 00:59:06.770 --> 00:59:11.270 Chairman Mainer are referring to with 00:59:11.270 --> 00:59:14.680 the guarantee or the volatility of the guarantee of, 00:59:14.680 --> 00:59:17.333 of other ISD. 00:59:19.930 --> 00:59:22.783 Well, certainly we can guarantee that analysis. 00:59:23.690 --> 00:59:27.873 Certainly we can never guarantee the future risks. 00:59:29.640 --> 00:59:33.150 We rely heavily on the rating agencies, 00:59:33.150 --> 00:59:38.150 who are the primary organizations, external organizations, 00:59:38.660 --> 00:59:41.700 responsible for assessing the risk. 00:59:41.700 --> 00:59:42.660 And they are 00:59:45.060 --> 00:59:48.680 the language relates to would likely result in a negative 00:59:48.680 --> 00:59:50.500 impact on the bond ratings. 00:59:50.500 --> 00:59:54.010 The ratings are created by the rating agencies. 00:59:54.010 --> 00:59:58.120 So we have ongoing discussions with the rating agencies to 00:59:58.120 --> 01:00:01.570 review how they are assessing the risks. 01:00:01.570 --> 01:00:02.403 And 01:00:05.070 --> 01:00:10.070 all three of them have assumed continue the continual 01:00:10.850 --> 01:00:13.280 phasing of the 20%. 01:00:13.280 --> 01:00:17.020 But obviously we can't can't guarantee the future. 01:00:17.020 --> 01:00:17.853 Right? 01:00:17.853 --> 01:00:19.960 And so that, 01:00:19.960 --> 01:00:23.910 because we can't guarantee the future and because they 01:00:23.910 --> 01:00:28.910 already have almost $2 billion still available to them, 01:00:29.710 --> 01:00:32.810 why is there a rush today to give them another one and a 01:00:32.810 --> 01:00:36.670 half billion dollars just seems, 01:00:36.670 --> 01:00:39.743 it seems reckless behalf of this body. 01:00:40.930 --> 01:00:42.910 And I just, I can't support it. 01:00:42.910 --> 01:00:46.920 And I would just ask that at the time that you take the 01:00:46.920 --> 01:00:48.030 vote, Mr. chairman, 01:00:48.030 --> 01:00:51.810 that it'd be a roll call vote because I think Texans deserve 01:00:51.810 --> 01:00:54.710 to know what we're doing and the actions that we're taking 01:00:55.790 --> 01:01:00.790 with the money that we're entrusted to protect and 01:01:02.400 --> 01:01:06.120 having the amount of debt that already exists on the charter 01:01:06.120 --> 01:01:08.880 side, having 2 billion available still, 01:01:08.880 --> 01:01:12.760 and adding a billion and a half more with the uncertainty 01:01:12.760 --> 01:01:14.403 that we're living in today. 01:01:15.620 --> 01:01:17.800 It's, it's a scary thing for me. 01:01:17.800 --> 01:01:21.390 And I think Texans deserve to know what we're doing with 01:01:21.390 --> 01:01:23.950 their money in the event that something goes wrong in the 01:01:23.950 --> 01:01:27.203 future, they can look back at this moment and realize, 01:01:29.050 --> 01:01:32.350 you know, who supported something like this viral? 01:01:32.350 --> 01:01:33.263 So he popped up. 01:01:35.280 --> 01:01:38.950 Yeah, I just would wanting to point out then under, 01:01:38.950 --> 01:01:41.930 under the statute that the increases are contemplated to 01:01:41.930 --> 01:01:45.410 start September 1st of each year. 01:01:45.410 --> 01:01:48.230 So they apply to the state fiscal years that began on 01:01:48.230 --> 01:01:49.363 September 1st. 01:01:55.100 --> 01:01:55.933 Is there any other questions? 01:01:55.933 --> 01:02:00.833 I think Dr. Robinson has his hand up also and Mr. 01:02:02.910 --> 01:02:05.300 Alley, you know, follow dr. 01:02:05.300 --> 01:02:06.133 Robinson, Mr. 01:02:06.133 --> 01:02:07.453 Mercer and Mr. rally. 01:02:08.360 --> 01:02:11.730 So was this accidentally put in the Consent Agenda, 01:02:11.730 --> 01:02:13.690 Consent Agenda, something was voted on. 01:02:13.690 --> 01:02:17.200 So if we're not voting on it and it was not meant to be in 01:02:17.200 --> 01:02:19.590 the Consent Agenda, is that right? 01:02:19.590 --> 01:02:20.423 So, dr. 01:02:20.423 --> 01:02:21.256 Robinson, 01:02:21.256 --> 01:02:24.280 I believe oftentimes you'll have items on your agenda that 01:02:24.280 --> 01:02:26.900 are posted to allow you to take action, 01:02:26.900 --> 01:02:29.700 but you don't always take action, so I think if, 01:02:29.700 --> 01:02:33.320 if there had been action taken, 01:02:33.320 --> 01:02:35.810 then that would have been what would have ended up on the 01:02:35.810 --> 01:02:39.570 Consent Agenda, just don't know that in advance. 01:02:39.570 --> 01:02:41.270 So we're not voting on this. 01:02:41.270 --> 01:02:45.113 There is nothing before you to vote on at this time. 01:02:48.630 --> 01:02:49.910 Correct? 01:02:49.910 --> 01:02:52.610 It wouldn't, it should've just been a discussion item. 01:02:53.520 --> 01:02:58.520 Not necessarily, so when, when we prepare your items, 01:02:59.290 --> 01:03:01.660 if there's a chance that you need to take action, 01:03:01.660 --> 01:03:04.520 we have to post it as action. 01:03:04.520 --> 01:03:07.910 Just because you're posted as action doesn't mean that you 01:03:07.910 --> 01:03:10.520 have to take action, but if it was posted at discussion, 01:03:10.520 --> 01:03:12.570 then you wouldn't be able to take action. 01:03:13.590 --> 01:03:17.690 I think that, and not to speak for him, he can correct me, 01:03:17.690 --> 01:03:21.900 but I think a fairly standard protocol for many of the PSF 01:03:21.900 --> 01:03:25.470 items is if they're posted as action, 01:03:25.470 --> 01:03:28.580 they're also written such that they would go on the consent 01:03:28.580 --> 01:03:30.040 agenda, 01:03:30.040 --> 01:03:32.850 but this is all we have to anticipate because we don't 01:03:32.850 --> 01:03:35.350 always know what you will or will not do when we're 01:03:35.350 --> 01:03:36.667 preparing the agenda. 01:03:39.130 --> 01:03:41.890 That's the point that this agenda that we have before us 01:03:41.890 --> 01:03:46.173 today was posted prior to the meeting yesterday. 01:03:47.770 --> 01:03:49.720 Mr. Mercer, thank you, Mr. 01:03:49.720 --> 01:03:52.420 Chairman and member just a, a cup of tea, I think too. 01:03:54.770 --> 01:03:57.180 And it should maybe help me out on this, 01:03:57.180 --> 01:04:01.660 but we get a list of the bond guarantee by ISD is everyone 01:04:01.660 --> 01:04:03.280 knows because we, 01:04:03.280 --> 01:04:05.660 because we have stopped the legislator from raising the 01:04:05.660 --> 01:04:06.570 fund, and again, 01:04:06.570 --> 01:04:09.060 even this last year that there was a talk of take another 01:04:09.060 --> 01:04:10.080 three to $5 billion. 01:04:10.080 --> 01:04:15.080 But because we've done that the people who rate are fun, 01:04:15.650 --> 01:04:17.980 because we stopped the Raiders, 01:04:17.980 --> 01:04:22.513 the radar gave us the highest number, and because of our, 01:04:24.070 --> 01:04:26.570 our fund being Hartland in great shape, 01:04:26.570 --> 01:04:27.403 we're able to provide a, 01:04:27.403 --> 01:04:31.920 I think the best interest rate possible, all of our ISD. 01:04:32.853 --> 01:04:34.890 This is a statement because of that, 01:04:34.890 --> 01:04:36.570 because we've stopped people from taking money out of the 01:04:36.570 --> 01:04:39.500 fund and that's for all of them, now we get a list, Holland, 01:04:39.500 --> 01:04:43.310 every myth and Holland shuck, every session, every ISD, 01:04:43.310 --> 01:04:45.930 I think it's a two to three to one, you know, we, we, 01:04:45.930 --> 01:04:47.780 many of the bonding power we have, 01:04:47.780 --> 01:04:49.860 what percentage of all the bonds we have out now, 01:04:49.860 --> 01:04:53.160 or are public charter schools versus charter schools. 01:04:53.160 --> 01:04:57.830 I'm going to guess like 95% of 5% or 98 to 2% the bonds we 01:04:57.830 --> 01:05:01.850 guarantee now what percent of public schools and what 01:05:01.850 --> 01:05:06.753 percent are charters, just a good, a good guest. 01:05:09.150 --> 01:05:11.707 You are correct, the vast majority is ISD. 01:05:13.140 --> 01:05:17.197 It probably is about 95, 96%. 01:05:18.230 --> 01:05:23.200 So, we are very prudent in protecting our PSF fund. 01:05:23.200 --> 01:05:24.740 What are the requirements? 01:05:24.740 --> 01:05:27.490 We have the financial requirements, the threshold, 01:05:27.490 --> 01:05:29.510 they have to meet the qualify for our, 01:05:29.510 --> 01:05:32.183 for our bond guarantee, but for the 96%. 01:05:35.440 --> 01:05:36.273 They're there. 01:05:37.690 --> 01:05:41.653 Certain requirements in terms of debt outstanding, 01:05:43.030 --> 01:05:47.970 but we're guaranteeing about 85 billion in ISD debt. 01:05:47.970 --> 01:05:49.180 And as, 01:05:49.180 --> 01:05:52.697 as has been mentioned previously in the 37 years of the bond 01:05:52.697 --> 01:05:55.633 guarantee program, there's never been a single default, 01:05:56.770 --> 01:05:57.603 but to do we had to did it, 01:05:57.603 --> 01:05:58.503 did they have the promise to 96%? 01:05:58.503 --> 01:06:02.943 Plus I promise is certain financial, 01:06:06.890 --> 01:06:10.810 a certain rating that they'd done so well before we 01:06:10.810 --> 01:06:12.150 guarantee their bond. 01:06:12.150 --> 01:06:15.600 We have a test that we give them before we guarantee you, 01:06:15.600 --> 01:06:18.270 and I'm going to do, I know we go ahead. 01:06:18.270 --> 01:06:21.010 I'm sorry for the highest fees, 01:06:21.010 --> 01:06:25.930 the requirements are that they be have passed voter approval 01:06:25.930 --> 01:06:29.690 and certain limits on the debt, outstanding. 01:06:29.690 --> 01:06:31.580 They are not required to have a, 01:06:31.580 --> 01:06:34.970 a rating by a rate rating agency. 01:06:34.970 --> 01:06:38.780 That's a standard that applies to the charter schools only 01:06:40.480 --> 01:06:44.420 because the 96 very important that each charter school have 01:06:44.420 --> 01:06:45.253 that rating. 01:06:48.920 --> 01:06:52.210 The 96% plus would have no rating. 01:06:52.210 --> 01:06:55.720 We've had never had a default before percent or less who, 01:06:55.720 --> 01:06:59.090 who we do require them to have this financial rating, right? 01:06:59.090 --> 01:07:01.110 Is that's a true statement. 01:07:01.110 --> 01:07:03.330 It's like a 96% plus we don't have this financial 01:07:03.330 --> 01:07:05.240 requirement, never had a before. 01:07:05.240 --> 01:07:07.360 Now the question is now for this 4%. 01:07:07.360 --> 01:07:09.833 And we do have a financial requirement that, 01:07:09.833 --> 01:07:13.300 that that's the conversation now is at 4%, is that true? 01:07:13.300 --> 01:07:15.220 Chuck and Paul, am I wrong about that? 01:07:15.220 --> 01:07:18.680 Or that's correct. 01:07:18.680 --> 01:07:21.080 Now the vast majority of ISD do have a rating, 01:07:21.080 --> 01:07:24.860 but they're not required to anything else, Mr. 01:07:24.860 --> 01:07:29.860 Mercer, As we do well, 01:07:31.120 --> 01:07:34.187 I'm just going down that road because talking by now, 01:07:36.650 --> 01:07:38.250 I'll lead into this. 01:07:38.250 --> 01:07:41.327 The savings we have for the public school is like 01:07:41.327 --> 01:07:42.670 $150 million a year. 01:07:42.670 --> 01:07:47.060 We save on interest that goes back to the classroom and the 01:07:47.060 --> 01:07:49.563 charter schools, these, 01:07:51.070 --> 01:07:56.070 the charter school again, were criticized the highest rated, 01:07:57.360 --> 01:08:00.550 even qualify, they're saying we saved $12 million a year. 01:08:00.550 --> 01:08:01.383 I want to stop. 01:08:01.383 --> 01:08:02.233 Make sure we understand that we're talking about a very 01:08:02.233 --> 01:08:04.267 small percentage of the whole thing. 01:08:04.267 --> 01:08:05.920 And a small percentage has, 01:08:05.920 --> 01:08:08.490 has to have the highest financial rating even qualify it. 01:08:08.490 --> 01:08:09.800 Thank you, sir. 01:08:09.800 --> 01:08:10.633 Thank you, Mr. 01:08:10.633 --> 01:08:13.270 Mercer, before rotten aside, I think we had one last one, 01:08:13.270 --> 01:08:14.980 the stir rally. 01:08:14.980 --> 01:08:16.470 Oh yeah, a. 01:08:16.470 --> 01:08:20.610 Couple of questions I have first off procedurally and this 01:08:20.610 --> 01:08:22.693 is directed toward Monica, I think. 01:08:24.250 --> 01:08:25.083 So. 01:08:25.083 --> 01:08:28.530 Is it the recommendation of the public school fund committee 01:08:28.530 --> 01:08:33.137 to take no action on, on this item, right? 01:08:36.030 --> 01:08:36.863 Yes, sir. 01:08:36.863 --> 01:08:37.840 That's correct. 01:08:37.840 --> 01:08:39.200 But then since it's now, 01:08:39.200 --> 01:08:44.200 before the Board can a motion be made from the floor that we 01:08:47.210 --> 01:08:51.670 take action, so as to, I guess, 01:08:51.670 --> 01:08:56.670 to not move forward with the 20% additional set aside for 01:08:57.410 --> 01:09:01.000 for the charter school reserved fund. 01:09:01.000 --> 01:09:02.660 So I'm going to answer the first part of that, 01:09:02.660 --> 01:09:06.930 and then I'll let Holland end or Vaughn provide 01:09:06.930 --> 01:09:09.700 clarification just because there was an, 01:09:09.700 --> 01:09:12.170 a recommendation out of committee doesn't mean that you 01:09:12.170 --> 01:09:16.550 couldn't offer a motion at this time. 01:09:16.550 --> 01:09:20.040 So that is something that would be allowable in terms of 01:09:20.040 --> 01:09:24.110 what, with respect to this specific agenda item, 01:09:24.110 --> 01:09:27.220 what type of emotion you could offer, 01:09:27.220 --> 01:09:31.640 I will defer to Holland and Vaughn. 01:09:31.640 --> 01:09:33.963 Do you want to answer that question? 01:09:41.950 --> 01:09:45.270 Yeah, I mean, I think what's what's before he is what, 01:09:45.270 --> 01:09:50.270 what we've laid out if by September 1st by statute inning 01:09:51.530 --> 01:09:54.063 and the legislative required to increase comes up, 01:09:55.720 --> 01:10:00.080 you have this Board has the option to stop that if it, 01:10:00.080 --> 01:10:05.080 if it sees one of two tasks or both tests get, get tripped, 01:10:06.470 --> 01:10:10.600 so you would need an affirmative vote there to stop the 01:10:10.600 --> 01:10:13.390 increase, otherwise by statute it happens. 01:10:13.390 --> 01:10:17.033 So there need to be a motion here to stop it, to, 01:10:18.490 --> 01:10:19.970 to delay the increase. 01:10:19.970 --> 01:10:24.970 And then we'd want some discussion about how you met those 01:10:25.020 --> 01:10:26.400 tests. 01:10:26.400 --> 01:10:27.830 So for clarification, 01:10:27.830 --> 01:10:30.600 we can only vote in the affirmative to stop this. 01:10:30.600 --> 01:10:33.490 If one of those two triggers were met statutorily, 01:10:33.490 --> 01:10:35.150 is that correct? 01:10:35.150 --> 01:10:39.600 That the statute authorizes you to reasons to stop this, 01:10:39.600 --> 01:10:41.920 or even for inquiry Mr. Ryder? 01:10:41.920 --> 01:10:44.270 You know, my inquiry, I guess, 01:10:44.270 --> 01:10:46.590 to the parliamentarian to maybe legal counsel is, 01:10:46.590 --> 01:10:51.380 is the motion using in conflict with statute is about a 01:10:51.380 --> 01:10:52.213 order. 01:10:54.780 --> 01:10:55.613 Would be like 01:11:00.230 --> 01:11:02.983 what violate state laws of question. 01:11:04.940 --> 01:11:05.773 Okay. 01:11:07.490 --> 01:11:10.300 Mr, buyer, let me ask you then. 01:11:10.300 --> 01:11:12.943 So the two statutory triggers are what, again, 01:11:18.470 --> 01:11:23.470 The statutory triggers are the Board determines that 01:11:24.210 --> 01:11:27.340 increasing the charter capacity by the amount provided by 01:11:28.190 --> 01:11:32.670 one would likely result in a negative impact on the bond 01:11:32.670 --> 01:11:36.150 ratings provided by one or more nationally recognized 01:11:36.150 --> 01:11:38.900 investment rating firms for school district or charter 01:11:38.900 --> 01:11:40.150 district bonds, 01:11:40.150 --> 01:11:44.490 for which a guarantee is requested under this Subchapter or 01:11:44.490 --> 01:11:46.030 one or more charter districts, 01:11:46.030 --> 01:11:49.390 default on payment of maturing or matured principal or 01:11:49.390 --> 01:11:53.320 interest on a guaranteed bond resulting in a negative impact 01:11:53.320 --> 01:11:55.810 on the bond ratings provided by one or more nationally 01:11:55.810 --> 01:11:59.070 recognized investment rating firms for school districts or 01:11:59.070 --> 01:12:01.230 charter school district bonds for which guarantee is 01:12:01.230 --> 01:12:02.440 requested. 01:12:02.440 --> 01:12:07.440 And so then the reason the reasoning we would have to, 01:12:07.800 --> 01:12:11.940 to conclude what we look at inclusion we would have to reach 01:12:11.940 --> 01:12:16.940 would be that if we took actions to Western negate, 01:12:17.360 --> 01:12:20.760 the 20% increase that it would negative, 01:12:20.760 --> 01:12:25.460 negatively affect one of a rating from one of the rating 01:12:25.460 --> 01:12:30.460 agencies would likely result in result and a negative rating 01:12:31.090 --> 01:12:33.863 from some rating agency, right? 01:12:35.300 --> 01:12:36.133 Yeah. 01:12:36.133 --> 01:12:37.500 So then if we thought, well, 01:12:37.500 --> 01:12:40.653 there's already enough money in there. 1.9 billion. 01:12:41.780 --> 01:12:46.670 And, and so that's the basis for our decision, 01:12:46.670 --> 01:12:50.670 or if we're concerned about the effect that COVID might have 01:12:50.670 --> 01:12:54.600 on, on future enrollment for charters bond, 01:12:55.890 --> 01:12:59.430 can you give us a legal opinion as to whether or not either 01:12:59.430 --> 01:13:04.430 of those two grounds would qualify a statutorily there's not 01:13:04.730 --> 01:13:07.910 really a legal determination of what would likely impact 01:13:07.910 --> 01:13:12.740 that is a policy choice that this Board is going to have to 01:13:12.740 --> 01:13:17.740 make and defend to critics of its decision. 01:13:20.080 --> 01:13:23.520 Well, it sounds to me that's, I mean, 01:13:23.520 --> 01:13:26.393 the question is whether or not we would violate statute, 01:13:26.393 --> 01:13:28.550 that seems to be a legal question, 01:13:28.550 --> 01:13:30.560 whether or not we would violate the statute, 01:13:30.560 --> 01:13:32.933 if the basis for our determination, 01:13:33.960 --> 01:13:38.340 it would let me finish if the basis for our determination is 01:13:38.340 --> 01:13:41.930 that we already think there's enough money in there now. 01:13:41.930 --> 01:13:45.080 And we think that COVID would have such a detrimental impact 01:13:45.080 --> 01:13:47.043 that we want to wait and see. 01:13:49.370 --> 01:13:50.203 So. 01:13:52.420 --> 01:13:53.253 First of all, 01:13:53.253 --> 01:13:56.580 I apologize for interrupting and didn't mean to do that 01:13:58.220 --> 01:14:00.570 second, what I can, 01:14:00.570 --> 01:14:04.120 what I can give you advice on a y'all can, 01:14:04.120 --> 01:14:07.880 can take a vote and you have the authority 01:14:09.960 --> 01:14:12.350 to vote how. 01:14:12.350 --> 01:14:16.030 However you would like the question is how would, 01:14:16.030 --> 01:14:18.810 how would that vote stand up to legal challenge? 01:14:18.810 --> 01:14:23.430 So you have to have your decisions, 01:14:23.430 --> 01:14:25.110 can't be arbitrary and capricious. 01:14:25.110 --> 01:14:28.290 So you would have to have a reasonable connection to the 01:14:28.290 --> 01:14:29.793 statutory basis. 01:14:31.430 --> 01:14:35.420 And so you would need to establish that there's a reasonable 01:14:35.420 --> 01:14:39.040 connection, that whatever reasons justify your vote, 01:14:39.040 --> 01:14:44.040 that it would likely impact the vote or the rating agencies. 01:14:47.240 --> 01:14:49.350 The second one I would advise, 01:14:49.350 --> 01:14:53.550 it seems pretty clear if there hasn't been a default. 01:14:53.550 --> 01:14:55.340 So I don't know. 01:14:55.340 --> 01:14:58.190 It's hard for me to see how you would reasonably do that. 01:14:59.250 --> 01:15:02.090 I don't know enough about how rating agencies make their 01:15:02.090 --> 01:15:03.370 determination. 01:15:03.370 --> 01:15:04.203 It, 01:15:04.203 --> 01:15:08.350 maybe you could say the impact of enrollment would likely 01:15:08.350 --> 01:15:10.640 impact that, i, I don't know. 01:15:10.640 --> 01:15:13.300 I think what you've been provided though, 01:15:13.300 --> 01:15:18.050 is that so far they haven't taken those actions and those 01:15:19.510 --> 01:15:23.373 that impact is likely known by those ratings. 01:15:24.420 --> 01:15:28.610 So, but I don't know anything about how, 01:15:28.610 --> 01:15:32.240 how rating agencies make those determinations, okay. 01:15:32.240 --> 01:15:33.073 Final question, Mr. 01:15:33.073 --> 01:15:34.630 Chair, and then I'll feel so Mr. 01:15:34.630 --> 01:15:35.530 Timmons, 01:15:35.530 --> 01:15:40.530 as our professional staff consultant on this issue in the 01:15:42.070 --> 01:15:46.160 event that we approved at 20%, they are, 01:15:46.160 --> 01:15:51.160 we take no action on the 20% increase and enrollment in 01:15:53.090 --> 01:15:57.903 charter schools takes a dip and the 20, 20, 01:15:59.017 --> 01:16:03.560 20, 2021 school year, in your opinion, 01:16:03.560 --> 01:16:07.620 would that negatively impact the ratings from one or more of 01:16:07.620 --> 01:16:08.873 our rating agencies? 01:16:09.970 --> 01:16:13.360 No, we have not received indication from the rating agencies 01:16:13.360 --> 01:16:17.320 that that would result in a negative impact. 01:16:17.320 --> 01:16:18.153 Okay. 01:16:18.153 --> 01:16:22.550 So even in anticipation of there being a dip because of 01:16:22.550 --> 01:16:25.680 coven or whatever other reasons, in your opinion, 01:16:25.680 --> 01:16:26.700 if we take no action here, 01:16:26.700 --> 01:16:29.700 is it going to negatively affect that rating? 01:16:29.700 --> 01:16:31.350 No. 01:16:31.350 --> 01:16:32.727 Thank you. 01:16:32.727 --> 01:16:34.143 Give me that again. 01:16:34.143 --> 01:16:37.240 And I would just clarify the point just because there was a 01:16:37.240 --> 01:16:41.970 decrease in attendance at either an ISD or charter that is 01:16:41.970 --> 01:16:45.230 not detrimental to the funding of the district because the 01:16:45.230 --> 01:16:47.580 child is not disenrolling, they're just making, 01:16:48.870 --> 01:16:53.010 they're moving their educational place to, 01:16:53.010 --> 01:16:55.750 to home versus a synchronous or asynchronous, 01:16:55.750 --> 01:16:58.010 not just rolling those students. 01:16:58.010 --> 01:16:59.020 Mr, Cortez, 01:16:59.020 --> 01:17:01.170 do you have anything else that you want to add that hasn't 01:17:01.170 --> 01:17:03.150 already been addressed? 01:17:03.150 --> 01:17:04.810 I did, I just, 01:17:04.810 --> 01:17:07.730 I just wanted to go back to the point that Mr. 01:17:07.730 --> 01:17:10.080 Timmins made earlier is that the has. 01:17:10.080 --> 01:17:11.520 No way of guaranteeing this. 01:17:11.520 --> 01:17:16.520 This is simply his opinion and the unlikelihood that, 01:17:17.560 --> 01:17:20.050 I mean, or the rehab qualities, 01:17:20.050 --> 01:17:25.050 none of us have ever gone through a global pandemic like 01:17:25.440 --> 01:17:30.440 this, and we are unsure of what could happen. 01:17:31.530 --> 01:17:36.530 And so the idea that, that we can likely conclude that, 01:17:37.410 --> 01:17:41.070 that won't for me gives, 01:17:41.070 --> 01:17:46.070 gives us the ability to say that we can take action and 01:17:47.750 --> 01:17:52.750 stop this increase and review it at a later time. 01:17:53.010 --> 01:17:54.930 Mr, Cortez discussed that point. 01:17:54.930 --> 01:17:55.763 Do you have anything that we need to discuss? 01:17:55.763 --> 01:17:58.330 Well, no, I would, 01:17:58.330 --> 01:18:01.700 then I would just make a motion that we take action. 01:18:01.700 --> 01:18:04.310 Okay, what is your, go ahead and state your motion. 01:18:04.310 --> 01:18:07.510 And then we take action on this item. 01:18:07.510 --> 01:18:08.410 Hold on just a second. 01:18:08.410 --> 01:18:11.127 What if you would like to make a motion? 01:18:11.127 --> 01:18:13.530 What I would need you to do is to present the motion. 01:18:13.530 --> 01:18:16.230 And I think what we will do at that point is I'll take a 01:18:16.230 --> 01:18:19.500 break and discuss this with our parliamentarian and legal 01:18:19.500 --> 01:18:20.333 staff to, 01:18:20.333 --> 01:18:23.750 to discuss with the emotional order or if it's conflict with 01:18:23.750 --> 01:18:24.700 statutes. 01:18:24.700 --> 01:18:27.040 And then we can decide to take up that motion from there. 01:18:27.040 --> 01:18:31.340 So if you have a motion to make the motion at this point 01:18:31.340 --> 01:18:32.240 would be an order. 01:18:33.600 --> 01:18:34.433 Okay, 01:18:34.433 --> 01:18:39.130 well then I would move that we take action because of the 01:18:39.130 --> 01:18:42.163 uncertainty that COVID-19 is causing. 01:18:43.340 --> 01:18:48.320 And let me see if I can help take action to 01:18:51.910 --> 01:18:54.960 take action to do it was said to you. 01:18:54.960 --> 01:18:57.220 You told us that if we took no action, 01:18:57.220 --> 01:19:00.163 then the increase becomes effective, September 1, 01:19:01.680 --> 01:19:06.120 if we take action, then we say no to the 20%. 01:19:06.120 --> 01:19:09.700 That's the way to say no to the 20%. 01:19:09.700 --> 01:19:12.913 That's what you're asking to take action on, and that's 01:19:15.030 --> 01:19:17.523 COVID-19 global pandemic. 01:19:20.330 --> 01:19:21.840 Okay, so we have emotion there. 01:19:21.840 --> 01:19:25.710 What I'm going to do is take a break here and I'm going to 01:19:25.710 --> 01:19:29.040 discuss this motion with our parliamentarian and legal 01:19:29.040 --> 01:19:31.220 staff, and then we will get back. 01:19:31.220 --> 01:19:36.220 And so we do have a motion a second, so no one go too far. 01:19:36.400 --> 01:19:38.500 Cause this should take just a few minutes. 01:19:44.950 --> 01:19:47.800 Give everyone a few minutes to get back on the lawn here. 01:20:17.830 --> 01:20:19.470 Alright, one, two, three, four. 01:20:19.470 --> 01:20:23.470 I think we got pretty much everyone, Mr. Mercer, 01:20:27.640 --> 01:20:29.940 are you there? 01:20:29.940 --> 01:20:31.593 So turn on your video, please. 01:20:39.500 --> 01:20:40.880 Everyone was working. 01:20:40.880 --> 01:20:45.033 So I believe so. 01:20:46.540 --> 01:20:49.890 Okay, I'll, we'll call us back together. 01:20:49.890 --> 01:20:52.420 So after consultation with our parliamentarian, 01:20:52.420 --> 01:20:56.460 I'm going to deem those in order this motion in order. 01:20:56.460 --> 01:20:58.320 But I would like to make a couple of other points after 01:20:58.320 --> 01:21:00.803 speaking with legal staff for clarification, 01:21:00.803 --> 01:21:04.910 this is a legislature who said that this increase will 01:21:04.910 --> 01:21:06.210 happen. 01:21:06.210 --> 01:21:08.530 Absence action by us. 01:21:08.530 --> 01:21:13.530 And it gives us two triggers to take that action, 01:21:14.030 --> 01:21:18.360 to stop the increase that the legislature has to happen. 01:21:18.360 --> 01:21:23.110 So before we take the vote or have any other discussion on 01:21:23.110 --> 01:21:25.870 the motion for Mr. Cortez, I would ask, 01:21:25.870 --> 01:21:28.980 is there a clarification for when a question comes from the 01:21:28.980 --> 01:21:31.700 legislature on why we took this action? 01:21:31.700 --> 01:21:34.390 What's one of those two specific triggers that the 01:21:34.390 --> 01:21:37.383 legislature has granted us, that this motion was based on. 01:21:41.150 --> 01:21:43.400 Are you asking me Mr. chairman? 01:21:43.400 --> 01:21:45.280 I'm asking the maker of the motion, okay. 01:21:45.280 --> 01:21:46.330 And that would be me. 01:21:48.340 --> 01:21:51.690 So the first, the first section of that statute, 01:21:51.690 --> 01:21:54.550 where it says that Mr. buyer, 01:21:54.550 --> 01:21:55.383 you want to read it one more time? 01:21:55.383 --> 01:21:57.330 Not the second, 01:21:57.330 --> 01:21:59.870 not the second trigger, just the first trigger. 01:21:59.870 --> 01:22:00.703 Yes, sir. 01:22:08.480 --> 01:22:12.630 The Board determines that increasing the charter capacity by 01:22:12.630 --> 01:22:17.610 the amount provided by subsection would likely result in a 01:22:17.610 --> 01:22:22.600 negative impact on the bond ratings provided by one or more 01:22:22.600 --> 01:22:26.150 nationally recognized investment rating firms for school 01:22:26.150 --> 01:22:28.100 district or charter district bonds, 01:22:28.100 --> 01:22:31.433 for which a guarantee is requested under this subject. 01:22:32.520 --> 01:22:34.960 So it is my contention, dr. 01:22:34.960 --> 01:22:35.793 Ellis, 01:22:35.793 --> 01:22:40.380 that this could likely result in that as a result of this 01:22:41.250 --> 01:22:45.890 global pandemic and this uncertainty in the markets given 01:22:45.890 --> 01:22:49.440 what's happened to not only our fund, but, 01:22:49.440 --> 01:22:52.460 but markets all across the world. 01:22:52.460 --> 01:22:57.460 And while I value Mr. Timmins, as our advisor on this, 01:22:57.640 --> 01:23:02.500 he has also stated that he has no way of guaranteeing this 01:23:02.500 --> 01:23:05.330 while he believes that that may not be the case. 01:23:05.330 --> 01:23:06.163 He is not. 01:23:06.163 --> 01:23:08.510 Certain that that will be the case, 01:23:08.510 --> 01:23:11.840 but that's likely resolve that, it could happen give, 01:23:11.840 --> 01:23:15.490 in my opinion, us the authority to take this action. 01:23:15.490 --> 01:23:18.640 And again, we're not handicapping the charter schools, 01:23:18.640 --> 01:23:21.570 they already have $2 billion still available. 01:23:21.570 --> 01:23:25.610 I'm just saying because of the uncertainty in our state, 01:23:25.610 --> 01:23:27.173 which is our main focus. 01:23:28.490 --> 01:23:32.523 So miss take this action at this time. 01:23:33.690 --> 01:23:34.523 The question I asked, 01:23:34.523 --> 01:23:37.050 I want to clarify is that you are saving on the first of 01:23:37.050 --> 01:23:40.790 those two triggers that you have Mr. buyer read. 01:23:40.790 --> 01:23:43.770 So that's essentially, I want this for two reasons. 01:23:43.770 --> 01:23:46.430 I want it, you know, they talk about legislative intent. 01:23:46.430 --> 01:23:48.100 This is SPOD intent. 01:23:48.100 --> 01:23:52.710 I want this on the record of why we are taking this vote for 01:23:52.710 --> 01:23:55.060 the intent to be on the record. 01:23:55.060 --> 01:23:58.460 And then also for my purpose of, of taking a vote of, 01:23:58.460 --> 01:24:00.720 if I agree with that issue, Mr. 01:24:00.720 --> 01:24:02.440 Maynard, I saw your hand. 01:24:02.440 --> 01:24:05.360 I would just, I would just ask the maker of the motion. 01:24:05.360 --> 01:24:06.810 I mean, we, 01:24:06.810 --> 01:24:09.190 we've kind of heard in the circular argument for a period of 01:24:09.190 --> 01:24:14.190 time, but he is still yet to provide any evidence which, 01:24:15.720 --> 01:24:18.570 which bond rating agency do you think is going to downgrade 01:24:18.570 --> 01:24:19.970 as Mr. Cortez. 01:24:19.970 --> 01:24:24.070 And what would evidence specific evidence do you have? 01:24:24.070 --> 01:24:27.190 Other than that, there may be declining enrollment, 01:24:27.190 --> 01:24:30.100 but you have no evidence of declining enrollment. 01:24:30.100 --> 01:24:32.790 So which bond rating agency do you think is going to 01:24:32.790 --> 01:24:35.160 downgrade us and you know, 01:24:35.160 --> 01:24:39.220 who have you talked to that knows anything about this that 01:24:39.220 --> 01:24:42.560 is provided that, that evidence, Mr. 01:24:42.560 --> 01:24:45.290 Cortez, would you like to respond to that? 01:24:45.290 --> 01:24:48.390 I haven't talked to any of the bond rating agencies, Mr. 01:24:48.390 --> 01:24:49.223 Maynard. 01:24:49.223 --> 01:24:50.840 But if you turn on the news today, 01:24:50.840 --> 01:24:54.990 you're going to see businesses all over this country, 01:24:54.990 --> 01:24:58.750 filing for bankruptcy or just shuttering their doors, 01:24:58.750 --> 01:25:00.610 businesses all across town. 01:25:00.610 --> 01:25:04.420 That means economies everywhere are taking the hit. 01:25:04.420 --> 01:25:05.253 If, 01:25:05.253 --> 01:25:10.050 if even right now on construction sites all over the state 01:25:11.080 --> 01:25:15.450 in charter schools or public schools, you've got, 01:25:15.450 --> 01:25:19.710 you've got limited crews working on these sites because of 01:25:19.710 --> 01:25:22.220 social distancing requirements. 01:25:22.220 --> 01:25:26.930 So the fact that they still have $2 billion, they're there, 01:25:26.930 --> 01:25:29.170 they're still in good shape, again, I'm not, 01:25:29.170 --> 01:25:31.510 not trying to take more money from them. 01:25:31.510 --> 01:25:32.920 If they're owed this money, 01:25:32.920 --> 01:25:35.050 then at some point they're going to get it. 01:25:35.050 --> 01:25:36.980 But I'm saying they shouldn't get it today. 01:25:36.980 --> 01:25:40.820 Because as Mr Timmons said himself, 01:25:40.820 --> 01:25:44.450 he can't guarantee that the likelihood of this being 01:25:44.450 --> 01:25:47.270 impacted is going to be there, and for me, 01:25:47.270 --> 01:25:52.100 if his unlikeliness to guarantee that is there, 01:25:52.100 --> 01:25:54.710 that that should be sufficient for us. 01:25:54.710 --> 01:25:57.550 But I mean, clearly you. 01:25:57.550 --> 01:26:01.440 You want to try and get me the record, Mr. 01:26:01.440 --> 01:26:03.600 Cortez, answer his question, Mr. 01:26:03.600 --> 01:26:04.433 Minor. 01:26:04.433 --> 01:26:05.840 Do you have any additional questions? 01:26:07.440 --> 01:26:08.273 You know, 01:26:08.273 --> 01:26:11.100 we have to honor the rule of law and what the statue says, 01:26:11.100 --> 01:26:12.950 and there has been no evidence. 01:26:12.950 --> 01:26:17.950 And is that anything that's being said is a bond rating and 01:26:19.350 --> 01:26:21.040 there's no evidence for it, okay. 01:26:21.040 --> 01:26:22.230 I've got miss Penn has, and then Mr. 01:26:22.230 --> 01:26:23.063 Mercer. 01:26:26.860 --> 01:26:28.310 So if you can help me please, Mr. 01:26:28.310 --> 01:26:29.940 Maynard, or perhaps Mr. 01:26:29.940 --> 01:26:30.773 Timmons. 01:26:30.773 --> 01:26:35.773 I just want to make sure that I'm clear when we're saying 01:26:36.120 --> 01:26:40.310 that they're the ratings agencies gave good ratings. 01:26:40.310 --> 01:26:42.420 This was in may. 01:26:42.420 --> 01:26:46.790 And that in may the ratings that are, 01:26:46.790 --> 01:26:50.630 that we're using now to guarantee this increase this 20% 01:26:50.630 --> 01:26:51.970 increase in capacity, 01:26:51.970 --> 01:26:56.970 took in to consideration the potential for lower enrollment, 01:26:57.940 --> 01:27:01.740 the potential for teachers not returning out of fear 01:27:03.110 --> 01:27:06.800 or whatever those, those ratings took. 01:27:06.800 --> 01:27:09.020 Those two factors into consideration. 01:27:09.020 --> 01:27:13.113 And we consider them to be valid today. 01:27:16.080 --> 01:27:21.080 So the writing agencies continually rewrite the fund. 01:27:21.870 --> 01:27:25.360 Each of the three major rating agencies rate the fund about 01:27:25.360 --> 01:27:28.030 once a year on their own schedule. 01:27:28.030 --> 01:27:30.520 And whenever they have questions or concerns, 01:27:30.520 --> 01:27:35.520 they reach out to us and their writings are valid until 01:27:37.390 --> 01:27:39.293 they, they make a change. 01:27:40.530 --> 01:27:44.130 So yes, they, they, when they went over, 01:27:44.130 --> 01:27:45.260 if they have concerns, 01:27:45.260 --> 01:27:49.870 they will reach out to us ask questions and they can either 01:27:49.870 --> 01:27:52.883 give a different rating or put you on credit watch. 01:27:53.720 --> 01:27:57.373 But their writing is valid until they choose to change it. 01:28:01.120 --> 01:28:05.030 Breaking and writings were dated May 1st, is that right? 01:28:05.030 --> 01:28:07.723 I just want to make sure my notes are correct, please. 01:28:09.320 --> 01:28:12.040 No, they've, they've all been, 01:28:12.040 --> 01:28:15.370 the writings are all different times for each of the three. 01:28:15.370 --> 01:28:17.180 Okay, okay. 01:28:17.180 --> 01:28:20.840 And we don't have any reason to suspect that that the 01:28:20.840 --> 01:28:24.230 ratings agencies have raised any red flags and they have not 01:28:24.230 --> 01:28:29.230 reached out for two to advise of your office or tea, 01:28:30.050 --> 01:28:32.990 but they have any concern with the ratings that were 01:28:32.990 --> 01:28:35.883 provided on whatever schedule they had in the past. 01:28:38.510 --> 01:28:40.410 Two of them have reached out to ask some questions, 01:28:40.410 --> 01:28:44.960 but they have not raised any red flags or issued formal 01:28:44.960 --> 01:28:49.200 concerns or those questions 01:28:52.260 --> 01:28:57.173 about operating virtually impact on the portfolio. 01:28:59.280 --> 01:29:02.030 Most of the questions related to the actual. 01:29:02.030 --> 01:29:07.030 Portfolio performance during the March April time period, 01:29:07.320 --> 01:29:12.320 but they are ask questions about expected cash flows. 01:29:14.080 --> 01:29:18.783 So just normal inputs into their analysis. 01:29:19.840 --> 01:29:20.673 Okay. 01:29:20.673 --> 01:29:21.563 Thank you, sir. 01:29:24.070 --> 01:29:26.220 Thank you, Mr. chairman Holland, 01:29:26.220 --> 01:29:28.720 you may remember if not a made the yield to, 01:29:28.720 --> 01:29:33.720 but recently this Board agreed on the PSF on value, 01:29:34.440 --> 01:29:38.210 the guaranteed bond ratio, the ratio we have. 01:29:38.210 --> 01:29:43.210 Do you remember what that number is now using? 01:29:43.210 --> 01:29:45.280 Our PSF fund is leverage leverage. 01:29:45.280 --> 01:29:49.747 We can guarantee X amount of bond, a bond guaranteed, 01:29:52.760 --> 01:29:53.593 right? 01:29:53.593 --> 01:29:58.593 It is a little above three times. 01:29:58.920 --> 01:30:02.920 And the hard cap that that is the operative camp for us is 01:30:02.920 --> 01:30:06.613 117 billion, that's the IRS limit. 01:30:07.840 --> 01:30:11.130 So there's not 117 billion in our PSF fund, 01:30:11.130 --> 01:30:14.140 but because of the qualifications, the laws we have, 01:30:14.140 --> 01:30:14.973 which are probably very, 01:30:14.973 --> 01:30:17.740 very conservative compared to the rest of the nation, we, 01:30:17.740 --> 01:30:19.990 if we had a 35 billion in our fund available, 01:30:19.990 --> 01:30:22.360 we can guarantee you 117. 01:30:22.360 --> 01:30:23.193 In my point, 01:30:23.193 --> 01:30:28.193 is this so the increase for the charter schools and then to 01:30:28.720 --> 01:30:32.220 a fund they contribute to is on overall total of what amount 01:30:32.220 --> 01:30:33.053 is then what happens? 01:30:33.053 --> 01:30:34.410 Is that a dollar more, 01:30:34.410 --> 01:30:39.410 we're talking about the total guarantees about 85 billion. 01:30:41.390 --> 01:30:43.030 I mean the increase, I'm sorry. 01:30:43.030 --> 01:30:47.540 The, the charter schools did increase discussion amendment. 01:30:47.540 --> 01:30:50.760 Mr, chairman Ellis can tell me what the increase were. 01:30:50.760 --> 01:30:54.340 The question now there's an increase of was at 1.2 billion 01:30:54.340 --> 01:30:56.690 for charter schools, is that where debating right now? 01:30:56.690 --> 01:30:59.420 Yes, it's a little under 1.2 billion, 01:30:59.420 --> 01:31:01.910 but it's not a cash. 01:31:01.910 --> 01:31:04.160 If someone mentioned cash, we're not talking about cash. 01:31:04.160 --> 01:31:08.660 We're talking about a God Byron TEA of a three and a half, 01:31:08.660 --> 01:31:10.510 three to three and a half times the members, 01:31:10.510 --> 01:31:11.957 you understand what I'm saying? 01:31:11.957 --> 01:31:15.000 I'm not talking about $1.2 billion cash. 01:31:15.000 --> 01:31:18.490 We're talking about a bond guarantee that might be maybe 01:31:18.490 --> 01:31:20.520 300 million to, you know, what, 01:31:20.520 --> 01:31:22.730 whatever else I'm not clear about that 01:31:22.730 --> 01:31:25.480 Mr. Chairman, Alison in chairman Maynard, 01:31:25.480 --> 01:31:26.380 you see where I'm going? 01:31:26.380 --> 01:31:28.860 I want to make sure we're not talking about a cash flow. 01:31:28.860 --> 01:31:30.520 We're talking about a bond guarantee. 01:31:30.520 --> 01:31:34.440 That's based on at least three X or minimum with reacts. 01:31:34.440 --> 01:31:39.290 I'll stop there to enlist confusion on that, okay. 01:31:39.290 --> 01:31:41.753 Mr. Maynard, was that a Twitch or a handrail? 01:31:43.020 --> 01:31:45.500 Okay, so I don't see any other hands raised. 01:31:45.500 --> 01:31:46.760 I want to ask Ms. Kay, 01:31:46.760 --> 01:31:50.840 that to make sure that she is clear on exactly what dr. 01:31:50.840 --> 01:31:52.950 Robinson had his hand up, okay. 01:31:52.950 --> 01:31:53.783 Dr, Robinson. 01:31:55.340 --> 01:31:59.070 I think that there's, there's a lot of uncertainty. 01:31:59.070 --> 01:32:00.080 I don't think that. 01:32:00.080 --> 01:32:03.523 We're, I'm not sure why we're even debating that part. 01:32:04.360 --> 01:32:06.450 And there's a lot of, I mean, 01:32:06.450 --> 01:32:09.200 governmental entities are taking a big hit are gonna take a 01:32:09.200 --> 01:32:10.960 real big hit. 01:32:10.960 --> 01:32:14.030 And so, you know, the just overall, 01:32:14.030 --> 01:32:19.030 financially speaking for us to be putting more money into 01:32:19.530 --> 01:32:24.163 the bond guarantee program while for charters, 01:32:25.200 --> 01:32:28.000 while this is unfolding. 01:32:28.000 --> 01:32:29.010 I mean, if y'all want to, 01:32:29.010 --> 01:32:31.660 if we can table it to later in the fall or something like 01:32:31.660 --> 01:32:35.560 that, but I think now the level of uncertainty is definitely 01:32:35.560 --> 01:32:39.820 reason enough, and I respectfully disagree with Mr. 01:32:39.820 --> 01:32:42.500 Ma member Mainer that, you know, he does, 01:32:42.500 --> 01:32:45.690 none of us know that everything's going to be fine six 01:32:45.690 --> 01:32:48.590 months from now, and there's, there's definitely reason. 01:32:48.590 --> 01:32:50.260 Objective reason. 01:32:50.260 --> 01:32:52.230 The thing that, you know, 01:32:52.230 --> 01:32:55.460 a lot of parents might decide to homeschool their kids. 01:32:55.460 --> 01:32:57.460 And what you were talking about earlier, 01:32:58.370 --> 01:33:00.490 chairman Ellis is that, you know, 01:33:00.490 --> 01:33:05.090 the kid is not enrolled if they were withdrawn that that 01:33:05.090 --> 01:33:08.500 charter or that IST loop does lose that money. 01:33:08.500 --> 01:33:10.160 So there's just a lot of uncertainty. 01:33:10.160 --> 01:33:13.580 And I don't understand why I think it's appropriate to 01:33:13.580 --> 01:33:15.593 share, usually consider a question, 01:33:16.450 --> 01:33:20.610 putting this extra money in on, I do have a question on dr. 01:33:20.610 --> 01:33:22.030 Robinson's point right there, you know, 01:33:22.030 --> 01:33:26.320 we are theoretically, if we, if, if we take no action here, 01:33:26.320 --> 01:33:28.080 when would that increase going to affect that? 01:33:28.080 --> 01:33:29.880 I hear you say it was September one. 01:33:32.930 --> 01:33:33.763 That's correct. 01:33:33.763 --> 01:33:36.300 Okay, so to dr. 01:33:36.300 --> 01:33:38.990 Robinson's point, if we table this, 01:33:38.990 --> 01:33:41.960 that we'll put it past our next meeting at what's point on 01:33:41.960 --> 01:33:44.593 September one, because we've taken no action. 01:33:45.820 --> 01:33:47.550 If I'm understanding correctly, 01:33:47.550 --> 01:33:50.400 the 20% increase will go into effect because we took no 01:33:50.400 --> 01:33:53.360 action in our next meeting would not able, 01:33:53.360 --> 01:33:57.770 it would not be until after that September one trigger date. 01:33:57.770 --> 01:34:01.620 So, and this, I don't see any other hands raised. 01:34:01.620 --> 01:34:05.030 I would just speak to this, my point to this. 01:34:05.030 --> 01:34:08.740 I don't feel that the law says that we have the authority to 01:34:08.740 --> 01:34:11.450 take action here, if we think there's uncertainty, 01:34:11.450 --> 01:34:12.840 we have it, if it says, 01:34:12.840 --> 01:34:15.620 if we feel this will impact our credit rating, 01:34:15.620 --> 01:34:20.620 we've had our PSF staff and council tell us that there is no 01:34:21.030 --> 01:34:25.780 indication from our credit rating for credit rating people, 01:34:25.780 --> 01:34:28.080 that that's going to be the case. 01:34:28.080 --> 01:34:31.690 So I see no other hands raised, I want to check with Ms. 01:34:31.690 --> 01:34:35.683 Kay, to clarify that she has the motion that's on the floor. 01:34:38.870 --> 01:34:39.703 Thank you, sir. 01:34:39.703 --> 01:34:41.000 Actually, Ms. 01:34:41.000 --> 01:34:42.700 Martinez is, 01:34:42.700 --> 01:34:46.330 is your reporter and she did a better job than I did. 01:34:46.330 --> 01:34:51.330 She wrote that what the motion made was to move this COE, 01:34:51.590 --> 01:34:56.340 take action to say no to the 20% increase because of the 01:34:56.340 --> 01:34:57.253 covet, nice. 01:34:59.040 --> 01:34:59.873 Okay. 01:34:59.873 --> 01:35:01.070 Okay, so we have the motion. 01:35:01.070 --> 01:35:02.260 We had it seconded. 01:35:02.260 --> 01:35:04.860 I was just clarifying what the motion is. 01:35:04.860 --> 01:35:06.970 So next we will move to the vote. 01:35:06.970 --> 01:35:09.340 I would just want to make sure it's a roll call vote. 01:35:09.340 --> 01:35:11.860 Okay, we have had a roll call, vote requested, 01:35:11.860 --> 01:35:14.880 and a roll call vote will be granted. 01:35:14.880 --> 01:35:17.403 So staff, I would ask you call the roll. 01:35:18.680 --> 01:35:20.597 That is a parliamentary. 01:35:22.280 --> 01:35:26.720 If you would please K explain to everybody what their vote 01:35:26.720 --> 01:35:30.330 by saying yay or nay, exactly what that signifies. 01:35:30.330 --> 01:35:31.163 Please. 01:35:33.910 --> 01:35:35.003 You're on mute, Kay? 01:35:36.300 --> 01:35:38.770 You got the video, didn't get 01:35:38.770 --> 01:35:41.630 didn't get the microphone, thanks, Monica. 01:35:41.630 --> 01:35:46.630 The motion of before you is for the state Board 01:35:48.520 --> 01:35:51.890 to say no to the 20% increase. 01:35:51.890 --> 01:35:56.890 So vote in favor is a vote against the 20% increase a vote 01:35:58.590 --> 01:36:03.590 against this motion would allow the statutory requirement to 01:36:05.700 --> 01:36:10.440 be fulfilled and for the 20% to go into effect. 01:36:10.440 --> 01:36:11.940 Does that answer your question 01:36:14.080 --> 01:36:16.470 back to you just to make sure that I'm clear if you don't 01:36:16.470 --> 01:36:20.703 mind Ms. Cruz, if I vote, no. 01:36:23.530 --> 01:36:28.530 The effect of that with the effect of that would be to 01:36:29.030 --> 01:36:32.930 permit the statutory requirement to go forward. 01:36:32.930 --> 01:36:37.930 And the Von guarantee program capacity would be increased by 01:36:39.310 --> 01:36:41.360 20%. 01:36:41.360 --> 01:36:42.210 No, I vote. 01:36:42.210 --> 01:36:47.210 Yes, in favor of the motion to stop the 20% in automatic 01:36:50.270 --> 01:36:51.103 increase. 01:36:51.103 --> 01:36:51.936 Correct, Ms. 01:36:51.936 --> 01:36:53.007 Cruz, thank you. 01:36:54.100 --> 01:36:54.933 Is there anyone? 01:36:54.933 --> 01:36:55.766 I heard a voice. 01:36:55.766 --> 01:36:59.130 I've gotten this from Mercer with those Androids. 01:36:59.130 --> 01:37:01.400 Let me make a point. 01:37:01.400 --> 01:37:04.240 I know I was asking the other day they use zoom hands. 01:37:04.240 --> 01:37:05.300 It's easier for me. 01:37:05.300 --> 01:37:08.180 And I've been doing actual fiscal raised hands this morning. 01:37:08.180 --> 01:37:09.480 Let's just go back to your zoom hands. 01:37:09.480 --> 01:37:11.300 It just makes it easier for me. 01:37:11.300 --> 01:37:14.210 It actually gives me a list of who raised her hand. 01:37:14.210 --> 01:37:16.500 And so go ahead, Mr. 01:37:16.500 --> 01:37:17.997 Marshall, I got two points. 01:37:17.997 --> 01:37:20.770 I'll make the motion, I hand again, 01:37:20.770 --> 01:37:24.913 a no vote says yes to want to continue with the increase, 01:37:26.740 --> 01:37:27.573 right? 01:37:27.573 --> 01:37:29.850 And a yes means no, 01:37:29.850 --> 01:37:33.100 we want to stop the increase, right? 01:37:33.100 --> 01:37:34.750 This kind of negative, now here's 01:37:35.910 --> 01:37:38.860 does this impact is this is this limited just to the 01:37:38.860 --> 01:37:42.660 increases with the bond guarantee is not just tar charter 01:37:42.660 --> 01:37:44.223 schools, it's all schools. 01:37:45.400 --> 01:37:49.760 So is this limited just to the charter schools, 01:37:49.760 --> 01:37:51.860 it could be effected by COVID all schools. 01:37:53.140 --> 01:37:54.350 It's just charter schools. 01:37:54.350 --> 01:37:56.230 So this is out. 01:37:56.230 --> 01:38:00.010 If only the charter schools will not get the increase. 01:38:00.010 --> 01:38:03.590 So if I want to continue that to treat everybody the same, 01:38:03.590 --> 01:38:05.410 I would vote, no, 01:38:05.410 --> 01:38:09.000 if I want to say no only charter schools will be impacted. 01:38:09.000 --> 01:38:10.160 I vote, yes. 01:38:10.160 --> 01:38:10.993 Is that it? 01:38:11.990 --> 01:38:14.040 Yes, kind of backward thinking again, 01:38:14.040 --> 01:38:16.940 if I want to keep the same program to all public and private 01:38:16.940 --> 01:38:19.360 school and charter schools, I vote. 01:38:19.360 --> 01:38:22.700 No, if I want to penalize only charter schools I vote. 01:38:22.700 --> 01:38:24.630 Yes, is that correct, sir? 01:38:24.630 --> 01:38:25.850 That is correct. 01:38:25.850 --> 01:38:27.890 And I am going to award Mr. Allen, 01:38:27.890 --> 01:38:29.750 the award for raising a zoom here next. 01:38:29.750 --> 01:38:31.910 So he gets to be called on next. 01:38:31.910 --> 01:38:34.540 I simply wanted to know that if we are to, 01:38:34.540 --> 01:38:38.380 if this was to go forward and we did that, 01:38:38.380 --> 01:38:40.533 and the increase did not take place. 01:38:40.533 --> 01:38:44.723 What is the next time that this would be visited by Mr. 01:38:47.010 --> 01:38:47.940 Timmons or Mr. Minor? 01:38:47.940 --> 01:38:49.690 Do you have that answer or Mr. bar, 01:38:51.400 --> 01:38:56.400 the phase in has been a five year phase and a 20% per year. 01:38:56.920 --> 01:39:00.470 So unless the Board preferred to do it sooner, 01:39:00.470 --> 01:39:05.050 we would automatically do it next summer for the final 20% 01:39:05.050 --> 01:39:06.070 phasing. 01:39:06.070 --> 01:39:08.040 And the reason I asked that question is, 01:39:08.040 --> 01:39:11.220 cause that was some caveat to the conversation about some 01:39:11.220 --> 01:39:15.110 concept of delay in terms of not waiting a full year before 01:39:15.110 --> 01:39:16.740 we be visited again, 01:39:16.740 --> 01:39:18.560 but he just dropped off with this motion. 01:39:18.560 --> 01:39:20.500 We either gonna do it or we not. 01:39:20.500 --> 01:39:24.490 And then wait that entire year in order to revisit it again. 01:39:24.490 --> 01:39:28.640 So this motion does not allow us to revisit it within any 01:39:28.640 --> 01:39:31.363 given time other than the annual cycle. 01:39:34.830 --> 01:39:36.920 That is correct, I think if we took it up earlier, 01:39:36.920 --> 01:39:39.980 we'd actually be taking out next year's 20% increase. 01:39:39.980 --> 01:39:41.610 We could do that earlier in the calendar year, 01:39:41.610 --> 01:39:44.563 but this 20% will have already taken place. 01:39:46.490 --> 01:39:48.323 Okay, Mr. Cortez? 01:39:51.280 --> 01:39:52.253 Yes, Mr. Chair. 01:39:55.010 --> 01:39:59.070 I just want her to speak to the comments of member Mercer. 01:39:59.070 --> 01:40:02.250 As I read the item, it says review of bond guarantee, 01:40:02.250 --> 01:40:04.360 program charter capacity. 01:40:04.360 --> 01:40:06.500 So it's not that we're singling somebody out. 01:40:06.500 --> 01:40:09.380 This is the way your PSF agenda item. 01:40:09.380 --> 01:40:11.950 So I'm not trying to single anybody out, sir. 01:40:11.950 --> 01:40:13.870 So if you're gonna, 01:40:13.870 --> 01:40:16.700 if you're going to talk that kind of information, 01:40:16.700 --> 01:40:21.700 make sure it's factually accurate because I'm not trying to 01:40:24.230 --> 01:40:26.310 Mr, Cortez you've responded to him. 01:40:26.310 --> 01:40:30.030 You've made your point there, I think we're past the bait. 01:40:30.030 --> 01:40:33.070 We have the motion and I've asked for the roll call vote. 01:40:33.070 --> 01:40:34.620 So we will go ahead and do that 01:40:42.690 --> 01:40:46.493 Favor of the motion, Mr. Cortez. 01:40:49.140 --> 01:40:51.110 Yes. 01:40:51.110 --> 01:40:52.093 Yes. 01:40:53.780 --> 01:40:54.650 Mr. Allen. 01:40:54.650 --> 01:40:55.483 No. 01:40:56.960 --> 01:40:57.910 Mr. Mercer. 01:40:57.910 --> 01:40:58.743 No. 01:41:00.510 --> 01:41:01.360 Mrs. (mumbles). 01:41:02.370 --> 01:41:03.213 No. 01:41:03.213 --> 01:41:06.080 Dr. Robinson. 01:41:06.080 --> 01:41:07.660 Yes. 01:41:07.660 --> 01:41:08.493 Mrs. Cargill. 01:41:08.493 --> 01:41:09.326 No. 01:41:10.470 --> 01:41:12.590 Dr. Maner. 01:41:12.590 --> 01:41:13.423 No. 01:41:14.360 --> 01:41:19.360 Ms. Hardy, Ms. Little, Ms. Divas. 01:41:25.210 --> 01:41:26.830 Yes. 01:41:26.830 --> 01:41:28.430 Mrs. Melton Malone. 01:41:28.430 --> 01:41:29.263 No. 01:41:30.150 --> 01:41:31.320 Mr. Rowley. 01:41:31.320 --> 01:41:32.153 No. 01:41:33.450 --> 01:41:35.610 Dr. Ellis, would you like to register a vote 01:41:40.880 --> 01:41:45.880 five in favor nine against the motion fails. 01:41:48.810 --> 01:41:51.160 Okay, Ms. Kay, does that close out that auto. 01:41:56.060 --> 01:41:58.953 Unless someone else wishes to make a different motion? 01:41:59.990 --> 01:42:01.860 I have a question about that, Mr. 01:42:01.860 --> 01:42:02.920 Chair, go ahead, Mr. 01:42:02.920 --> 01:42:04.290 Ella. 01:42:04.290 --> 01:42:06.220 So Ms. Cruz, 01:42:06.220 --> 01:42:10.833 is it necessary for us to have a motion to take no action? 01:42:13.630 --> 01:42:15.220 I don't believe so, sorry. 01:42:15.220 --> 01:42:16.440 This is something that, 01:42:16.440 --> 01:42:20.320 from what I understand of the statute will happen 01:42:20.320 --> 01:42:23.830 automatically and that you only need to take action. 01:42:23.830 --> 01:42:28.380 If you wish to do something different, take action. 01:42:28.380 --> 01:42:30.733 Then it will go ahead and be funded. 01:42:34.080 --> 01:42:37.320 Alright, so we had, that will conclude that item. 01:42:37.320 --> 01:42:38.230 We had Ms. Pettis 01:42:38.230 --> 01:42:42.970 asked for another item to be removed off consent, 01:42:42.970 --> 01:42:45.373 and that was item number seven. 01:42:46.480 --> 01:42:47.313 Ms, Perez, 01:42:47.313 --> 01:42:50.320 do you want to speak to that before we have staff make any 01:42:50.320 --> 01:42:51.313 presentations? 01:42:54.450 --> 01:42:55.283 Yes, sure. 01:42:55.283 --> 01:42:56.530 Ellis, thank you. 01:42:56.530 --> 01:43:01.480 The reason that I asked for this item to be removed from 01:43:01.480 --> 01:43:04.080 consent is because of 01:43:05.860 --> 01:43:10.480 my understanding that there's only one firm that applied or 01:43:10.480 --> 01:43:14.670 submitted their qualifications to, 01:43:14.670 --> 01:43:18.890 to be legal counsel for the bond guarantee program. 01:43:18.890 --> 01:43:21.290 And this one firm, other than, 01:43:21.290 --> 01:43:24.170 than I do not believe that selecting from a pool of one is 01:43:24.170 --> 01:43:29.170 best practice for, for any submitted any RFQ or RFP. 01:43:32.040 --> 01:43:34.070 But in addition to being only one firm, 01:43:34.070 --> 01:43:37.830 this particular firm is not hub certified. 01:43:37.830 --> 01:43:40.800 And so I have a few questions about 01:43:43.210 --> 01:43:48.210 RFQ RFPs, hubs, certifications requirements of, 01:43:48.770 --> 01:43:51.757 for there to be certified firms, when. 01:43:51.757 --> 01:43:54.697 I'm doing this kind of work, et cetera, staff, 01:43:57.340 --> 01:43:59.540 would you like to make any comments to that? 01:44:03.390 --> 01:44:08.390 I will lead off this area is highly, 01:44:08.750 --> 01:44:13.750 highly specialized and complex dealing with federal 01:44:13.840 --> 01:44:16.110 regulations, and 01:44:19.360 --> 01:44:24.170 there are relatively few firms that, 01:44:24.170 --> 01:44:29.170 that have the expertise necessary to perform this function. 01:44:32.130 --> 01:44:35.710 We knew from, from day one, 01:44:35.710 --> 01:44:39.670 that there would be a very limited response. 01:44:39.670 --> 01:44:44.670 That was the expectation just because of the high level of 01:44:45.170 --> 01:44:46.623 specialization. 01:44:49.700 --> 01:44:52.800 And I think at that point, if Mr. 01:44:52.800 --> 01:44:55.780 Campbell is on, he can further address 01:44:56.620 --> 01:45:01.620 just the highly technical specialized nature of this role. 01:45:02.550 --> 01:45:03.383 Right? 01:45:06.960 --> 01:45:08.713 Sure, I'd be happy to. 01:45:09.630 --> 01:45:10.463 Yeah, 01:45:11.360 --> 01:45:16.360 I guess the specialization that's needed here is specific to 01:45:16.750 --> 01:45:20.300 tax regulations relating to the increase in the capacity of 01:45:20.300 --> 01:45:23.573 the bond of the bond guarantee program. 01:45:24.610 --> 01:45:28.240 The council that would have to be specialized and qualified 01:45:28.240 --> 01:45:32.290 for this needs to have that tax expertise also needs to be 01:45:32.290 --> 01:45:35.780 kind of LinkedIn and connected with the treasury department 01:45:35.780 --> 01:45:40.223 and in Washington to be effective in that capacity. 01:45:41.070 --> 01:45:42.950 You know, my firm Jackson Walker, 01:45:42.950 --> 01:45:45.187 we're the fourth largest law firm in Texas. 01:45:45.187 --> 01:45:47.690 And we did not respond to the RFP because we didn't feel 01:45:47.690 --> 01:45:51.570 like we had that, that capability or, or, 01:45:51.570 --> 01:45:54.280 or expertise in that regard. 01:45:54.280 --> 01:45:58.310 So that, that goes to the point of there being a minimal, 01:45:58.310 --> 01:46:02.610 minimal affirms that are going to be qualified to best serve 01:46:02.610 --> 01:46:03.910 the permanent school fund. 01:46:06.020 --> 01:46:09.230 So when you say that there are minimal firms, 01:46:09.230 --> 01:46:12.540 does that mean only firms in Texas or Texas based firms are 01:46:12.540 --> 01:46:15.110 the only ones that are allowed to submit their quality 01:46:15.110 --> 01:46:16.270 occasions. 01:46:16.270 --> 01:46:18.007 And for this particular RFQ, 01:46:22.060 --> 01:46:25.060 I believe that my differs to, 01:46:25.060 --> 01:46:27.690 to some of the folks involved in 01:46:27.690 --> 01:46:28.523 in the purchasing contract. 01:46:28.523 --> 01:46:30.130 But I think of the attorney general, 01:46:30.130 --> 01:46:32.800 I believe requires that at least there's lawyers who are 01:46:32.800 --> 01:46:36.363 licensed to practice in Texas, that are members of the firm, 01:46:40.370 --> 01:46:41.203 that's correct. 01:46:41.203 --> 01:46:44.050 But many of the firms we deal with are nationwide firms, 01:46:44.050 --> 01:46:47.043 but do have attorneys that are licensed in Texas. 01:46:49.580 --> 01:46:50.490 So when I. 01:46:50.490 --> 01:46:55.030 Was going through the firm's 01:46:57.920 --> 01:46:59.780 qualification submission, 01:46:59.780 --> 01:47:04.230 I noticed that when they talk about 01:47:05.960 --> 01:47:07.670 subcontracting, 01:47:07.670 --> 01:47:10.570 they are planning to do all of the work themselves. 01:47:10.570 --> 01:47:13.430 They're not even planning to subcontract with a hub 01:47:13.430 --> 01:47:16.003 certified firm, is that typical? 01:47:17.720 --> 01:47:19.870 And the reason I'm asking that is because it's my 01:47:19.870 --> 01:47:23.980 understanding, and again, please correct me when I'm wrong. 01:47:23.980 --> 01:47:26.800 But that if, if we, if sub heard of, 01:47:26.800 --> 01:47:30.830 if hubs certified firms never get this experience, 01:47:30.830 --> 01:47:35.040 then they can never qualify to ever do this work with us. 01:47:35.040 --> 01:47:35.873 Is that right? 01:47:37.730 --> 01:47:42.400 Well, this invitation was sent out to hub firms that are 01:47:42.400 --> 01:47:47.400 registered, it was sent to a list of about 50 firms or 50 01:47:50.880 --> 01:47:55.880 individuals or firms that are listed on the Texas CMB L. 01:47:56.100 --> 01:48:00.850 So they, these firms were invited to take part. 01:48:00.850 --> 01:48:03.893 Typically we saw law firms, 01:48:06.290 --> 01:48:08.330 don't subcontract worker. 01:48:08.330 --> 01:48:13.270 It has been our experience that they typically do the work 01:48:13.270 --> 01:48:15.733 themselves rather than subcontracting. 01:48:21.640 --> 01:48:23.300 Is there, is it, 01:48:23.300 --> 01:48:28.300 is it possible that the RFQ deadline can be extended so that 01:48:29.320 --> 01:48:34.320 when we, as a Board make a recommendation or accept the 01:48:35.340 --> 01:48:38.690 qualifications that we're choosing from more than a pool of 01:48:38.690 --> 01:48:39.523 one. 01:48:41.040 --> 01:48:44.410 This RFQ had a hard deadline, this course, 01:48:44.410 --> 01:48:46.710 this RFQ was approved by the Board, 01:48:46.710 --> 01:48:48.190 and it has a hard deadline. 01:48:48.190 --> 01:48:51.540 So any submission that was not received by the due date 01:48:52.670 --> 01:48:54.023 could not be accepted. 01:48:59.370 --> 01:49:02.083 Your other questions are going to, if not. 01:49:04.470 --> 01:49:06.527 I do have a couple of more questions. 01:49:06.527 --> 01:49:11.527 And so is it possible to put any kind of contingency that 01:49:13.930 --> 01:49:15.350 particularly in this time, 01:49:15.350 --> 01:49:19.150 when we're trying to increase equity, 01:49:19.150 --> 01:49:24.150 that we asked this one firm to make a good faith effort and 01:49:24.370 --> 01:49:28.660 locate identify Texas certified hubs for subcontracting 01:49:28.660 --> 01:49:32.930 opportunities, because we can't extend the RFQ. 01:49:32.930 --> 01:49:36.090 We can't increase from a pool of one. 01:49:36.090 --> 01:49:41.090 They're not hub certified, it's an annual renewal, is it, 01:49:41.120 --> 01:49:44.910 can we ask for a good faith effort to look to for them to 01:49:44.910 --> 01:49:48.510 locate and provide for. 01:49:48.510 --> 01:49:50.670 For the use of, 01:49:50.670 --> 01:49:54.210 of women owned and veteran owned and minority owned sub 01:49:54.210 --> 01:49:56.120 contracting opportunities. 01:49:56.120 --> 01:49:56.953 This Ben is, 01:49:56.953 --> 01:50:01.840 it's my understanding that that is expectation of everyone 01:50:01.840 --> 01:50:05.250 who applies for any contract that they make that good faith 01:50:05.250 --> 01:50:08.750 effort if they are going to subcontract, 01:50:08.750 --> 01:50:11.103 but they don't have to subcontract. 01:50:15.210 --> 01:50:16.043 Right? 01:50:16.043 --> 01:50:18.180 And so when I'm looking at this RFQ, 01:50:18.180 --> 01:50:21.080 they're planning to, to self perform, 01:50:21.080 --> 01:50:24.310 meaning they're not going to subcontract. 01:50:24.310 --> 01:50:28.000 So my question then becomes, can we ask, 01:50:28.000 --> 01:50:31.900 can we implement the contingency that they do? 01:50:31.900 --> 01:50:35.870 Because this is not a hub certified firm. 01:50:35.870 --> 01:50:38.440 And we are also selecting from a pool of one. 01:50:38.440 --> 01:50:41.660 And I find it just difficult to tell taxpayers that we did 01:50:41.660 --> 01:50:45.390 our best effort in select in our selection process when we 01:50:45.390 --> 01:50:47.810 have only one to select from, 01:50:47.810 --> 01:50:51.830 and then we have no contingency plan for them to increase 01:50:51.830 --> 01:50:54.833 hubs certified subcontract opportunity opportunities. 01:50:56.350 --> 01:50:58.550 I don't believe that that's something that you could recall. 01:50:58.550 --> 01:51:01.250 I don't think you can require somebody to subcontract. 01:51:04.750 --> 01:51:07.000 Do you have any other costs with Ms. divas? 01:51:08.210 --> 01:51:09.043 No, sir. 01:51:11.530 --> 01:51:12.850 My first question is Mr. 01:51:12.850 --> 01:51:15.340 Tim has mentioned that it's a hard deadline. 01:51:15.340 --> 01:51:16.930 I know that earlier in the week, 01:51:16.930 --> 01:51:21.400 we decided to extend a deadline in reference to publisher. 01:51:21.400 --> 01:51:24.960 So my question, I guess, is for staff, 01:51:24.960 --> 01:51:27.680 what makes a hard deadline hard? 01:51:27.680 --> 01:51:31.200 If we were just able to extend one with publishers, 01:51:31.200 --> 01:51:33.670 why is this deadline so hard that it can't be, 01:51:33.670 --> 01:51:34.503 this can't be extended? 01:51:34.503 --> 01:51:36.460 That's my first question, Ms. Davis, 01:51:36.460 --> 01:51:40.060 with respect to the publisher deadline, that was, 01:51:40.060 --> 01:51:42.040 that was in a contract. 01:51:42.040 --> 01:51:44.780 So you extended a deadline that had nothing to do with a 01:51:44.780 --> 01:51:48.250 contract or contracting processes. 01:51:48.250 --> 01:51:52.570 The agency has to follow and adhere to very stringent 01:51:52.570 --> 01:51:57.060 requirements with respect to contracting, and so 01:51:57.060 --> 01:52:00.100 I stepped in here just because I want to make sure that it's 01:52:00.100 --> 01:52:03.080 clear that it's not just the PSS staff that has to follow 01:52:03.080 --> 01:52:05.270 those lots of rules. 01:52:05.270 --> 01:52:09.000 Every agency program has to do that when we are going 01:52:09.000 --> 01:52:11.290 through the procurement process. 01:52:11.290 --> 01:52:13.893 And so that's that's the distinction. 01:52:14.850 --> 01:52:18.530 So the deadline that was set for the publishers, 01:52:18.530 --> 01:52:19.363 what was that? 01:52:19.363 --> 01:52:21.710 That was in your proclamation. 01:52:21.710 --> 01:52:22.543 Okay. 01:52:22.543 --> 01:52:25.780 So it was a problem you have not yet gotten to see you don't 01:52:25.780 --> 01:52:29.240 enter into a contract with publishers until after you adopt 01:52:29.240 --> 01:52:31.120 their materials, so you haven't, 01:52:31.120 --> 01:52:33.860 you haven't gotten to that stage in the process, well, 01:52:33.860 --> 01:52:36.100 technically we haven't developed a contract with them either 01:52:36.100 --> 01:52:37.620 yet halfway, but, 01:52:37.620 --> 01:52:40.580 but you didn't issue a request for qualifications or 01:52:40.580 --> 01:52:42.920 requests for proposals to publishers. 01:52:42.920 --> 01:52:45.960 You issued a proclamation, which is different, right? 01:52:45.960 --> 01:52:50.220 Right, I understand that this is an RFQ or an RFP. 01:52:50.220 --> 01:52:51.620 I don't remember which, and, 01:52:51.620 --> 01:52:55.220 and falls under those procurement guidelines. 01:52:55.220 --> 01:52:58.280 That is very different from your proclamation, so 01:53:01.290 --> 01:53:04.130 it can not, or RFQ deadline is hard. 01:53:04.130 --> 01:53:06.853 It can not be extended for any reason. 01:53:08.270 --> 01:53:09.370 I believe that's correct. 01:53:09.370 --> 01:53:11.960 My understanding is they would have to start the process all 01:53:11.960 --> 01:53:12.793 over again. 01:53:13.760 --> 01:53:16.000 Have an RFQ has ever been extended or no, 01:53:16.000 --> 01:53:17.253 that's never happened. 01:53:18.370 --> 01:53:20.180 Not that I'm aware of. 01:53:20.180 --> 01:53:24.200 I think the Board has to set the rules at the beginning. 01:53:24.200 --> 01:53:29.200 This is a does fall within the state procurement standards. 01:53:30.400 --> 01:53:32.470 And the Board sets the rules. 01:53:32.470 --> 01:53:37.310 We have had RFQ that have been open-ended at the back end 01:53:37.310 --> 01:53:41.400 for investment purposes, but when, 01:53:41.400 --> 01:53:45.280 when a hard deadline is set, as Monica said, 01:53:45.280 --> 01:53:49.070 the only option is to start over again from scratch. 01:53:49.070 --> 01:53:53.960 This is a little different because this contract, 01:53:53.960 --> 01:53:57.100 since it's legal contract is controlled by the office of 01:53:57.100 --> 01:54:00.923 attorney general, so all actions are coordinated with them. 01:54:03.920 --> 01:54:06.650 And as she just stated, and it's not, 01:54:06.650 --> 01:54:09.800 you're not aware of any that have started have been 01:54:09.800 --> 01:54:11.860 extended, they've all started over. 01:54:11.860 --> 01:54:13.433 If that case has happened. 01:54:15.340 --> 01:54:18.840 We are not aware of any that have been extended after the 01:54:18.840 --> 01:54:20.720 hard deadline, okay. 01:54:20.720 --> 01:54:23.190 And my second question, 01:54:23.190 --> 01:54:27.140 how many hub contracts do you guys have right now? 01:54:27.140 --> 01:54:27.973 Okay. 01:54:34.680 --> 01:54:36.820 Kathy, are you on, do you. 01:54:36.820 --> 01:54:37.653 Yes, I am. 01:54:40.010 --> 01:54:43.470 Normally we see activity in the technology space. 01:54:43.470 --> 01:54:47.960 When we have hired technology consultants that are DIR 01:54:47.960 --> 01:54:50.850 approved, women owned businesses, 01:54:50.850 --> 01:54:54.700 we've spent a significant amount of money in the past with 01:54:54.700 --> 01:54:57.850 those types of firms at the present moment, 01:54:57.850 --> 01:55:00.870 we don't have any of those consultancies underway. 01:55:00.870 --> 01:55:03.830 So we're not spending money in that category, 01:55:03.830 --> 01:55:05.570 but every procurement, 01:55:05.570 --> 01:55:09.920 every competitive procurement that we issue has all of the 01:55:09.920 --> 01:55:14.920 language in the RFP or RFI that solicits and invites the 01:55:16.410 --> 01:55:20.370 vendors to focus on the idea that if you're a hub, 01:55:20.370 --> 01:55:22.680 get in the game, if you can subcontract, 01:55:22.680 --> 01:55:24.830 please do subcontractor hub. 01:55:24.830 --> 01:55:29.040 So every one of our solicitations is trying to focus the 01:55:29.040 --> 01:55:34.040 vendor community on this concept of your active contracts. 01:55:34.250 --> 01:55:37.010 You don't have any that belong to hubs a lot, no, 01:55:37.010 --> 01:55:38.790 not at the moment because a lot of our contracts, 01:55:38.790 --> 01:55:40.810 our data subscriptions, 01:55:40.810 --> 01:55:44.840 and we're subscribing to firms that provide wall street, 01:55:44.840 --> 01:55:48.110 investment data, and those are not hubs. 01:55:48.110 --> 01:55:48.943 Do you have any hubs that are being subcontracted? 01:55:48.943 --> 01:55:53.723 At least I can't answer that question, I'm sorry, 01:55:55.957 --> 01:56:00.957 but the TEA contracting division has a hub coordinator and 01:56:01.030 --> 01:56:04.630 that, that part of the office I'm sure could give you the 01:56:04.630 --> 01:56:08.260 specifics what this, and this is my last question. 01:56:08.260 --> 01:56:09.870 So there are no health contracts. 01:56:09.870 --> 01:56:12.750 We don't think there's any hub sub contracts, 01:56:12.750 --> 01:56:15.470 the discussion of diversity and making sure that these 01:56:15.470 --> 01:56:17.490 opportunities are actually there, did that, 01:56:17.490 --> 01:56:18.323 is that intentional? 01:56:18.323 --> 01:56:19.156 Like, do you guys ever intentionally have conversations 01:56:19.156 --> 01:56:23.860 on how you can, you know, 01:56:23.860 --> 01:56:28.770 expand diversity and expand who is getting access to this 01:56:28.770 --> 01:56:29.603 information? 01:56:29.603 --> 01:56:32.940 Cause I guarantee there are firms of color who can do at 01:56:32.940 --> 01:56:34.710 least some of the work. 01:56:34.710 --> 01:56:38.570 I know this last contract was very extensive and I've even 01:56:38.570 --> 01:56:42.120 asked around myself and it was very, very, 01:56:42.120 --> 01:56:45.660 it was in a small few pool of folks who could pull that off. 01:56:45.660 --> 01:56:48.410 It may have been some that are outside of Texas, 01:56:48.410 --> 01:56:50.100 but necessarily not in Texas, 01:56:50.100 --> 01:56:54.180 but is that conversation intentional about how you're going 01:56:54.180 --> 01:56:57.900 to start utilizing hubs and allowing these firms of color to 01:56:57.900 --> 01:57:00.900 have access to some of these contract opportunities were not 01:57:01.890 --> 01:57:03.293 really posted for that. 01:57:05.970 --> 01:57:06.803 I'm sorry, Mr. 01:57:06.803 --> 01:57:08.790 Rowley, I didn't hear you. 01:57:08.790 --> 01:57:09.810 I think the point was, 01:57:09.810 --> 01:57:12.033 I don't think you were posted anything. 01:57:14.450 --> 01:57:15.760 Okay. 01:57:15.760 --> 01:57:18.810 Let's definitely answer that question. 01:57:18.810 --> 01:57:19.643 Okay. 01:57:24.500 --> 01:57:26.730 I would just reiterate what I said previously. 01:57:26.730 --> 01:57:30.113 Every procurement we do, we lift this up. 01:57:31.530 --> 01:57:36.530 We can't make vendors come and re respond. 01:57:36.770 --> 01:57:39.330 We deal with those that have responded. 01:57:39.330 --> 01:57:44.040 And I can say this about the law firm that is been lifted up 01:57:44.040 --> 01:57:47.560 as part of this RFQ, that particularly with our law firms, 01:57:47.560 --> 01:57:51.000 we do have a line of questioning to dig into the diversity 01:57:51.000 --> 01:57:54.020 makeup of their firm and how they promote people and how 01:57:54.020 --> 01:57:56.700 they promote women and people of color and other 01:57:56.700 --> 01:57:57.533 nationalities. 01:57:57.533 --> 01:58:01.710 So it is a subject that is important when we're hiring the 01:58:01.710 --> 01:58:02.543 law firms. 01:58:02.543 --> 01:58:07.320 So this law firm definitely has responded to that question 01:58:07.320 --> 01:58:11.010 to help us understand just exactly how diverse they are as a 01:58:11.010 --> 01:58:12.120 firm. 01:58:12.120 --> 01:58:13.490 What can I ask if it's important? 01:58:13.490 --> 01:58:16.390 Where does it fall in your rubric of when you're selecting 01:58:16.390 --> 01:58:17.223 people? 01:58:17.223 --> 01:58:19.540 What percentage and your rubric does that usually fall 01:58:19.540 --> 01:58:20.373 under? 01:58:20.373 --> 01:58:21.563 If it's of importance? 01:58:27.330 --> 01:58:30.220 Well, we deal with what is submitted to us in terms in these 01:58:30.220 --> 01:58:32.570 procurement processes, so if, 01:58:32.570 --> 01:58:35.450 if nothing comes in that meets that category, 01:58:35.450 --> 01:58:39.053 then we have to deal with those firms that did respond. 01:58:40.240 --> 01:58:42.690 So if it's there in front of us, 01:58:42.690 --> 01:58:45.150 we would pay attention to it. 01:58:45.150 --> 01:58:50.150 We are going to choose service providers who provide the 01:58:50.220 --> 01:58:52.540 best value to the state of Texas. 01:58:52.540 --> 01:58:54.810 And that is in accordance with the comptroller's procurement 01:58:54.810 --> 01:58:57.020 guidelines, but that is your objective. 01:58:57.020 --> 01:58:59.220 When you are shopping in the marketplace, 01:58:59.220 --> 01:59:02.140 that you are to make decisions that bring forth the best 01:59:02.140 --> 01:59:02.973 value. 01:59:04.100 --> 01:59:06.873 So this item is specifically for this or a queue 01:59:06.873 --> 01:59:11.873 and it's does relate to hubs. 01:59:13.570 --> 01:59:15.870 But if we're talking about that in a bigger perspective 01:59:15.870 --> 01:59:17.870 outside of this particular proposal, 01:59:17.870 --> 01:59:20.630 I think we're getting outside of Arkansas. 01:59:20.630 --> 01:59:23.530 Any other questions, Mr. writer? 01:59:23.530 --> 01:59:24.907 Alright, Mr. Mader. 01:59:25.830 --> 01:59:27.727 Yeah, Mr. chairman. 01:59:27.727 --> 01:59:29.693 And I would just because, 01:59:31.940 --> 01:59:36.940 check Campbell is here and he's our fiduciary counsel and he 01:59:37.410 --> 01:59:39.473 is part of a law firm. 01:59:41.260 --> 01:59:44.710 I just asked this question to Mr. Campbell. 01:59:44.710 --> 01:59:49.210 So, so we, we, we, we post these opportunities. 01:59:49.210 --> 01:59:53.707 These are, these are fused on, on the website and, 01:59:55.410 --> 01:59:58.390 and I'm assuming that, that all law firms, 01:59:58.390 --> 02:00:00.880 regardless of what their status is, 02:00:00.880 --> 02:00:05.420 or non hub have access to those websites and people within 02:00:05.420 --> 02:00:10.420 those law firms do regularly visit those that the 02:00:12.330 --> 02:00:14.150 dude to do work for the state, 02:00:14.150 --> 02:00:16.440 visit that website on a pretty regular basis. 02:00:16.440 --> 02:00:19.490 And they look at those jobs and they, they, 02:00:19.490 --> 02:00:22.850 they determined whether or not they've got the extra piece 02:00:22.850 --> 02:00:27.850 for the bandwidth professionally to, to handle those jobs. 02:00:28.850 --> 02:00:29.683 Would that be, 02:00:29.683 --> 02:00:32.480 can you kind of maybe speak to how that process works and 02:00:34.430 --> 02:00:36.340 yes, the sort of enlighten everybody? 02:00:36.340 --> 02:00:37.173 Cause 02:00:37.173 --> 02:00:40.790 I think what I think what I get the sense of is that people 02:00:40.790 --> 02:00:41.623 think that 02:00:41.623 --> 02:00:44.620 this happened under a rock somewhere and that nobody knew 02:00:44.620 --> 02:00:49.030 about, can you, can you speak to that a little bit? 02:00:49.030 --> 02:00:49.863 Well, I mean, 02:00:49.863 --> 02:00:54.040 I can attest that it all kind of governmental postings from 02:00:54.040 --> 02:00:56.540 the state of Texas I'll put on, 02:00:56.540 --> 02:00:58.810 I believe that electronic business, 02:00:58.810 --> 02:01:01.430 I don't know the exact name of the website, 02:01:01.430 --> 02:01:04.360 but there's an electronic business website that RFPs and 02:01:04.360 --> 02:01:08.620 RFPs are put on and broken down by legal services. 02:01:08.620 --> 02:01:12.840 And a lot of larger law firms included we'll have services 02:01:12.840 --> 02:01:15.100 that we pay for that kind of monitor those. 02:01:15.100 --> 02:01:19.120 And if there are areas of expertise that match with what our 02:01:19.120 --> 02:01:24.120 firms provides, we'll, we will respond. 02:01:24.510 --> 02:01:25.343 In addition, 02:01:25.343 --> 02:01:30.343 we'll receive solicitation separately from organizations as 02:01:30.830 --> 02:01:33.310 well, governmental organizations, 02:01:33.310 --> 02:01:34.770 and respond to those as well, but yeah, 02:01:34.770 --> 02:01:36.940 so there's something that we, we monitor 02:01:39.320 --> 02:01:41.080 for those opportunities. 02:01:41.080 --> 02:01:41.920 Yeah, and Mr. 02:01:41.920 --> 02:01:46.030 Chairman, let me just say this as that, I don't, I don't, 02:01:47.730 --> 02:01:51.840 I don't discount the concerns that are being expressed. 02:01:51.840 --> 02:01:54.790 You know, we would certainly like to have a, 02:01:54.790 --> 02:01:58.000 have a competitive bid process where you have multiple firms 02:01:58.000 --> 02:02:03.000 and we would have really loved to have had the opportunity 02:02:03.070 --> 02:02:08.070 to, to consider, you know, a wider array of, of firms, 02:02:08.940 --> 02:02:12.483 including firms that are, that are classified as hubs. 02:02:13.390 --> 02:02:15.290 But the fact of the matter is, is that 02:02:16.870 --> 02:02:18.910 the piece of work that we're, 02:02:18.910 --> 02:02:23.430 that we're putting out in this particular process is, 02:02:23.430 --> 02:02:26.350 is very, very highly specialized. 02:02:26.350 --> 02:02:28.810 And the number of firms out there that really have the 02:02:28.810 --> 02:02:30.000 capacity to do it, 02:02:30.000 --> 02:02:33.980 or the expertise to do it is pretty small, you know, how, 02:02:33.980 --> 02:02:36.900 how many, you know, how many public funds are, 02:02:36.900 --> 02:02:40.440 are there out there that guaranteed, you know, 02:02:40.440 --> 02:02:42.537 local bonds and then 02:02:42.537 --> 02:02:45.310 and then there's a process that we have to go through to 02:02:45.310 --> 02:02:49.440 expand capacity, we've got to work with with the IRS, 02:02:49.440 --> 02:02:51.220 possibly Congress, 02:02:51.220 --> 02:02:54.270 which means is that any firm that's doing that probably 02:02:54.270 --> 02:02:57.660 needs to have some presence in Washington, D C as well. 02:02:57.660 --> 02:03:01.460 And so every time that you add a, add a filter, you, you, 02:03:01.460 --> 02:03:04.940 you begin to narrow the number of firms that really have the 02:03:04.940 --> 02:03:09.940 capacity to do the work and will say, this is that, 02:03:11.900 --> 02:03:13.510 you know, and I think that 02:03:13.510 --> 02:03:17.550 Ms, divas is asking the question just in terms of the 02:03:17.550 --> 02:03:18.640 commitment. 02:03:18.640 --> 02:03:20.950 And I would just reiterate what, 02:03:20.950 --> 02:03:23.210 what we did earlier in the week, in terms of, 02:03:23.210 --> 02:03:28.210 of our carve out related to emerging managers, you know, 02:03:28.430 --> 02:03:32.790 we did a $350 million carve out specifically for emerging 02:03:32.790 --> 02:03:34.520 managers, you know, we don't, 02:03:34.520 --> 02:03:37.260 when it comes to managers or the permanent school fund is 02:03:37.260 --> 02:03:39.970 not allowed to consider huts, 02:03:39.970 --> 02:03:43.140 then the law doesn't allow us to do that. 02:03:43.140 --> 02:03:45.070 But what we can do is that by, 02:03:45.070 --> 02:03:49.410 by implementing this strategy in emerging, you know, 02:03:49.410 --> 02:03:50.243 manager, 02:03:50.243 --> 02:03:55.243 carve out that all the data suggests to us when we did that, 02:03:55.430 --> 02:03:58.370 that we wind up with a lot more firms that are minority and 02:03:58.370 --> 02:03:59.440 woman owned. 02:03:59.440 --> 02:04:01.590 And, and that's why we did that. 02:04:01.590 --> 02:04:04.050 And so, so we do have a commitment to that. 02:04:04.050 --> 02:04:08.140 And as far as the law allows us to do that, 02:04:08.140 --> 02:04:12.010 I would just say on this particular item, you know, 02:04:12.010 --> 02:04:15.010 the odds of us, you know, you know, 02:04:15.010 --> 02:04:18.993 finding another firm to apply for it is not very good. 02:04:19.950 --> 02:04:23.410 I think that this is a, this is a long process, 02:04:23.410 --> 02:04:25.427 but it's also an important process that, 02:04:25.427 --> 02:04:26.670 and I would say that it's, 02:04:26.670 --> 02:04:30.380 it's not something that we need to delay, you know, 02:04:30.380 --> 02:04:34.110 given the length of time, it takes for us to do that. 02:04:34.110 --> 02:04:36.560 And then this thing can take up, you know, 02:04:36.560 --> 02:04:38.820 four or five to complete. 02:04:38.820 --> 02:04:40.600 And in the meantime is the we're on a, 02:04:40.600 --> 02:04:45.600 on a trajectory at some point to exhaust our capacity to 02:04:46.120 --> 02:04:49.593 guarantee local school district bonds, and so I would just, 02:04:50.900 --> 02:04:53.800 I guess my message to the Board is that, well, that, 02:04:53.800 --> 02:04:58.440 that we, we do have a, a demonstrated, 02:04:58.440 --> 02:05:01.230 we are working toward for diversity. 02:05:01.230 --> 02:05:05.370 We are working toward engaging people vendors within the 02:05:05.370 --> 02:05:07.240 permanent school fund 02:05:07.240 --> 02:05:10.663 who reflect the diversity of our nation. 02:05:11.890 --> 02:05:16.100 It just so happens on this particular one, it's very, 02:05:16.100 --> 02:05:17.710 very difficult to do that 02:05:17.710 --> 02:05:21.320 and if we've got a qualified candidate, I think we, 02:05:21.320 --> 02:05:24.450 I think that rather than going back and starting that 02:05:24.450 --> 02:05:27.113 process over and potentially in danger, 02:05:29.590 --> 02:05:31.530 the process I would, 02:05:31.530 --> 02:05:32.880 I would encourage the Board to go ahead and, 02:05:32.880 --> 02:05:35.080 and improve this particular contract, 02:05:35.080 --> 02:05:39.110 understanding that we do have other initiatives out there to 02:05:39.110 --> 02:05:40.833 address these concerns. 02:05:42.520 --> 02:05:43.950 Mr, Allen. 02:05:43.950 --> 02:05:48.950 I want to say agreed with judginess position on having one 02:05:50.570 --> 02:05:53.020 applicant is not a best practices concept, 02:05:53.020 --> 02:05:57.110 and anybody to say that you only had one applicant and 02:05:57.110 --> 02:06:01.250 whatever our efforts were to secure those applicants. 02:06:01.250 --> 02:06:05.720 We wanted to really look at our own process because we did 02:06:05.720 --> 02:06:07.613 not get a pool of applicants to consider it. 02:06:07.613 --> 02:06:11.050 And when that occurs, you do want to look at your processes. 02:06:11.050 --> 02:06:14.680 So we were talking earlier about how we actually get this 02:06:14.680 --> 02:06:15.513 information out, 02:06:15.513 --> 02:06:18.900 how others actually can respond and where it goes. 02:06:18.900 --> 02:06:20.950 And so I think we're going to have to take a deeper dive in 02:06:20.950 --> 02:06:24.580 terms of what our efforts are in terms of how we communicate 02:06:24.580 --> 02:06:27.650 with some of those hubs and effectively. 02:06:27.650 --> 02:06:30.940 Cause I don't know the numbers that get 25 others. 02:06:30.940 --> 02:06:33.630 So since we talked about this extensively yesterday, 02:06:33.630 --> 02:06:36.130 we asked Mr. chm as these very same questions. 02:06:36.130 --> 02:06:39.397 And so I have a tendency to Lynn lean towards his expertise 02:06:39.397 --> 02:06:43.820 and his explanation of why he is confident and moving with 02:06:43.820 --> 02:06:46.787 the one applicant, and he began to talk about his, 02:06:47.940 --> 02:06:50.650 his confidence in this from being able to do the work that 02:06:50.650 --> 02:06:53.190 they'll be requested to do, also, 02:06:53.190 --> 02:06:55.030 I think we talked about this, 02:06:55.030 --> 02:07:00.030 this particular contract being $150,000 a year for the next 02:07:01.090 --> 02:07:04.250 and over the next five years, so in our, in our, 02:07:04.250 --> 02:07:07.060 in our system as really relatively small, 02:07:07.060 --> 02:07:09.030 I know we were talking about it, 02:07:09.030 --> 02:07:12.700 but it's relatively small in a sense of the word of what we 02:07:12.700 --> 02:07:14.010 normally do. 02:07:14.010 --> 02:07:16.730 And so that's why I was thinking it wouldn't be something 02:07:16.730 --> 02:07:19.980 that would be subcontracted out or looking for someone else 02:07:19.980 --> 02:07:23.360 to do the work because it's really relatively small, and, 02:07:23.360 --> 02:07:25.810 and that sense of where, so we, we asked Mr. 02:07:25.810 --> 02:07:29.050 Timmons to explain, explain to us yesterday, 02:07:29.050 --> 02:07:30.840 why he felt he was confident. 02:07:30.840 --> 02:07:33.433 And I thought he did a good job of doing it. 02:07:34.770 --> 02:07:36.100 Mr. I haven't spoken. 02:07:36.100 --> 02:07:41.100 Yet two comments. 02:07:41.730 --> 02:07:44.100 I support a member, divas is asking about it. 02:07:44.100 --> 02:07:47.270 I want to move forward, but maybe I'm not making an item, 02:07:47.270 --> 02:07:48.103 but maybe in the future, 02:07:48.103 --> 02:07:51.450 because it was also a question that came from the finance 02:07:51.450 --> 02:07:53.340 committee or public ed, and we, 02:07:53.340 --> 02:07:55.600 maybe we need to go ahead and present, i, you should, 02:07:55.600 --> 02:07:57.680 that you have a presentation to the Board. 02:07:57.680 --> 02:08:00.080 And in the future in September, 02:08:00.080 --> 02:08:05.080 just our proxy to ensure we are looking deed the 02:08:05.150 --> 02:08:08.410 historically underserved businesses that we are working with 02:08:08.410 --> 02:08:09.243 them, 02:08:09.243 --> 02:08:10.760 but just the thought I cannot make an item and that's the 02:08:10.760 --> 02:08:15.400 Board of grooves, but I'll want to move forward with this, 02:08:15.400 --> 02:08:16.260 but maybe in the future, 02:08:16.260 --> 02:08:19.130 we could have our presentation go through our process if 02:08:19.130 --> 02:08:19.963 done, 02:08:19.963 --> 02:08:22.730 before it makes sure that we are addressing historically 02:08:22.730 --> 02:08:26.010 underserved businesses, and secondly, I want to thank Mr. 02:08:26.010 --> 02:08:27.900 Robinson from his area. 02:08:27.900 --> 02:08:30.750 My staff just gave me one of my favorite birthday dishes of 02:08:30.750 --> 02:08:34.310 coconut shrimp, and I'm sure my coconut shrimp came from Mr. 02:08:34.310 --> 02:08:36.073 Robinson's area, so thank you, sir. 02:08:44.070 --> 02:08:45.190 Thank you, chair Ellison. 02:08:45.190 --> 02:08:46.380 So 02:08:46.380 --> 02:08:50.210 I have a couple of things that I heard and I just want to 02:08:50.210 --> 02:08:52.210 make sure that I'm understanding correctly. 02:08:52.210 --> 02:08:55.660 And I want everybody to understand why I'm doing this. 02:08:55.660 --> 02:08:59.020 Part of it is obviously because I want more hubs to be part 02:08:59.020 --> 02:09:02.820 of our process, I want more public participation. 02:09:02.820 --> 02:09:06.170 That's reflect of not only our classrooms, 02:09:06.170 --> 02:09:08.670 but our state and our changing nation. 02:09:08.670 --> 02:09:13.670 And looking at this particular firms website, they, 02:09:14.560 --> 02:09:19.560 they clearly have an interest, a very, you know, 02:09:20.230 --> 02:09:25.040 a stated interest in, in their commitment to racial equity. 02:09:25.040 --> 02:09:30.040 And so I think that before we execute the contract, 02:09:30.890 --> 02:09:33.370 the State Board of Education does have the flexibility to 02:09:33.370 --> 02:09:36.420 ask that this vendor make a good faith effort in identifying 02:09:36.420 --> 02:09:41.420 appropriate hubs because much to member Maynard's point, 02:09:42.300 --> 02:09:46.430 it's quite difficult for any other firms to build capacity. 02:09:46.430 --> 02:09:50.027 If, if we can not require more than self-performing and, 02:09:51.540 --> 02:09:56.540 and to, I guess, support my colleague member Davis, 02:09:57.890 --> 02:10:01.550 it's it kind of feels like it's like, we're in a catch 22. 02:10:01.550 --> 02:10:03.730 You can't get the experience because you don't have the job, 02:10:03.730 --> 02:10:05.500 but you can't get the job because you don't have the 02:10:05.500 --> 02:10:06.550 experience. 02:10:06.550 --> 02:10:09.830 And so coming from the perspective of a classroom teacher 02:10:09.830 --> 02:10:14.700 and going back to, we are only with a pool full of one, 02:10:14.700 --> 02:10:15.533 right? 02:10:15.533 --> 02:10:18.640 I can not submit a request to buy a box of pencils with only 02:10:18.640 --> 02:10:20.360 one quote I have to support. 02:10:20.360 --> 02:10:25.360 I have to provide at least three to show that the at least 02:10:26.580 --> 02:10:27.413 three, right, 02:10:27.413 --> 02:10:30.350 I have to show that this is the best one of three. 02:10:30.350 --> 02:10:33.390 And I can't even, I can't even do that now. 02:10:33.390 --> 02:10:36.660 And with this particular qualification that was submitted, 02:10:36.660 --> 02:10:38.630 there's no contingency, 02:10:38.630 --> 02:10:41.970 there's no requirement from the state Board that there will 02:10:41.970 --> 02:10:44.500 ever be any partnering that there will ever be any 02:10:44.500 --> 02:10:45.333 subcontracting. 02:10:45.333 --> 02:10:48.150 And I don't disagree with you remember Alec that, that, 02:10:48.150 --> 02:10:51.220 you know, $150,000 for the permanent school fund, 02:10:51.220 --> 02:10:52.490 it may not sound like a lot. 02:10:52.490 --> 02:10:55.120 And comparatively speaking for your, 02:10:55.120 --> 02:10:58.840 for the permanent school funds work $150,000 annually. 02:10:58.840 --> 02:10:59.860 Isn't a lot times, 02:10:59.860 --> 02:11:04.060 five years is potentially half a million dollars still from 02:11:04.060 --> 02:11:05.810 the perspective of the permanent school fund, 02:11:05.810 --> 02:11:10.700 not a large amount, however, when we're talking about hubs, 02:11:10.700 --> 02:11:12.500 that is a large amount, 02:11:12.500 --> 02:11:15.390 and this is a very lucrative opportunity for firms that 02:11:15.390 --> 02:11:17.680 could potentially be subcontracted. 02:11:17.680 --> 02:11:19.720 And we're not even asking. 02:11:19.720 --> 02:11:22.710 And I can't understand why we're not even putting a 02:11:22.710 --> 02:11:26.690 contingency that we absolutely can do because the contract 02:11:26.690 --> 02:11:31.690 has not been executed that this one firm that submitted 02:11:31.740 --> 02:11:32.900 qualifications, 02:11:32.900 --> 02:11:36.220 because they're the one firm that has the capacity to do 02:11:36.220 --> 02:11:37.053 this. 02:11:37.053 --> 02:11:42.053 We're not even requiring them to build capacity with hubs. 02:11:42.180 --> 02:11:46.730 We're not even requiring them to identify hubs certified 02:11:46.730 --> 02:11:50.110 firms that they could potentially build this capacity for. 02:11:50.110 --> 02:11:51.810 And I just, in this time, 02:11:51.810 --> 02:11:55.920 I just cannot understand why we're not doing 02:11:55.920 --> 02:11:58.220 it just feels perfunctory at this point. 02:11:58.220 --> 02:12:00.930 That is the bare minimum that we could ask for. 02:12:00.930 --> 02:12:04.260 And we're not even asking for that, and again, as, 02:12:04.260 --> 02:12:07.170 as a classroom teacher, this would not be acceptable in 02:12:08.220 --> 02:12:11.550 with my purchasing clerk as an, as a Board member, 02:12:11.550 --> 02:12:14.210 this would not be acceptable on a Board to choose from a 02:12:14.210 --> 02:12:17.500 pool of one, and I just you know, 02:12:17.500 --> 02:12:19.430 in a state of 27 million people, 02:12:19.430 --> 02:12:23.663 I just cannot believe that one is the best we could do. 02:12:26.810 --> 02:12:29.840 I don't see any other hands raised. 02:12:29.840 --> 02:12:32.133 Ms. Kay, are you there? 02:12:33.560 --> 02:12:36.190 Can you help me walk through this? 02:12:36.190 --> 02:12:39.410 Wasn't actually an action item, correct? 02:12:39.410 --> 02:12:41.130 That was pulled off consent. 02:12:41.130 --> 02:12:43.040 So what's our next step on this? 02:12:43.040 --> 02:12:43.873 So the next step would be the chairman 02:12:43.873 --> 02:12:46.610 of the committee that 02:12:46.610 --> 02:12:51.110 would be Mr. Maynard would make a motion, 02:12:51.110 --> 02:12:54.330 a recommendation from the committee because the committee 02:12:54.330 --> 02:12:57.600 still has their recommendation to bring forward. 02:12:57.600 --> 02:13:02.600 And then the Board can either adopt or not that 02:13:03.670 --> 02:13:04.503 recommendation. 02:13:06.650 --> 02:13:09.473 Mr. Miner bird for that. 02:13:17.210 --> 02:13:18.043 Okay. 02:13:26.790 --> 02:13:29.090 Thanks, three of your second set of minutes. 02:13:34.580 --> 02:13:35.413 Not, 02:13:41.070 --> 02:13:45.010 I fell to grab that other set of minutes. 02:13:50.080 --> 02:13:51.030 I've got it pulled up. 02:13:51.030 --> 02:13:54.250 If it'd be helpful for me to just share my screen. 02:13:54.250 --> 02:13:56.260 Oh, that would be nice. 02:14:01.177 --> 02:14:04.283 You should be able to see it now, they're under number. 02:14:05.210 --> 02:14:06.720 Alright, Mr. chairman, 02:14:06.720 --> 02:14:10.760 on behalf of the committee on school finance and in 02:14:10.760 --> 02:14:13.210 permanent school fund and move it to the state Board of 02:14:13.210 --> 02:14:17.380 education approved the selection of the legal counsel for 02:14:17.380 --> 02:14:18.710 the bond guarantee program, 02:14:18.710 --> 02:14:23.710 as outlined in RF Q seven zero one dash 20 there's 02:14:25.310 --> 02:14:27.660 zero six for the permanent school fund, 02:14:27.660 --> 02:14:32.220 and often an authorization and authorized contract execution 02:14:32.220 --> 02:14:33.870 by the Commissioner of education. 02:14:36.840 --> 02:14:39.210 We have a motion, do we have a second? 02:14:39.210 --> 02:14:44.210 Perfect parliamentary motion is actually the language down 02:14:46.310 --> 02:14:50.670 below that came from the committee. 02:14:50.670 --> 02:14:52.507 You've read the title of the. 02:14:54.560 --> 02:14:55.530 Okay. 02:14:55.530 --> 02:15:00.483 Okay, so let me, if you will allow the withdrawal, 02:15:02.500 --> 02:15:06.770 my motion and the restraint on behalf of 02:15:06.770 --> 02:15:11.373 the committee on school financing, permanent school fund, 02:15:12.530 --> 02:15:15.010 the move at the State Board of Education approved DLA Piper, 02:15:15.010 --> 02:15:17.210 LLP for the bond guarantee, 02:15:17.210 --> 02:15:21.220 program capacity and tax counsel scope and legal services 02:15:21.220 --> 02:15:24.390 authorization for contract execution by the Commissioner of 02:15:24.390 --> 02:15:25.223 education. 02:15:30.960 --> 02:15:31.900 Yes ma'am, yes, sir. 02:15:31.900 --> 02:15:33.500 Thank you, Ms. 02:15:33.500 --> 02:15:38.500 Cruz, is this the appropriate place or time to, 02:15:38.720 --> 02:15:43.100 to ask that here, where we're saying, 02:15:43.100 --> 02:15:47.960 we recommend that the State Board of Education approved can 02:15:47.960 --> 02:15:51.780 language be inserted here with the contingency, 02:15:51.780 --> 02:15:56.780 that there is at least a good faith effort to build capacity 02:15:58.200 --> 02:16:02.130 with hub certified firms to be performed by DLA Piper. 02:16:02.130 --> 02:16:03.740 Lop is this, 02:16:03.740 --> 02:16:07.180 can this be done because we have not executed the contract 02:16:07.180 --> 02:16:08.013 yet? 02:16:08.013 --> 02:16:11.230 Can we make that part of this motion part of this contract? 02:16:11.230 --> 02:16:15.930 Okay, as always, I'm happy to provide parliamentary advice. 02:16:15.930 --> 02:16:19.660 You have other experts who provide you legal advice. 02:16:19.660 --> 02:16:23.600 So I am telling you, my motion is amendable, 02:16:23.600 --> 02:16:28.060 whether or not those amendments that you wish to make or 02:16:28.060 --> 02:16:32.250 something that you can do within the wane of the government 02:16:32.250 --> 02:16:36.413 procurement processes is, is outside my scope of expertise. 02:16:37.370 --> 02:16:41.033 But yes, from a parliamentary perspective, this motion. 02:16:46.520 --> 02:16:47.353 Alright. 02:16:47.353 --> 02:16:50.523 Any further comments or questions on that in this business 02:16:52.690 --> 02:16:53.523 here? 02:16:53.523 --> 02:16:54.780 Yes. 02:16:54.780 --> 02:16:58.363 If the maker of the motion, it finds this amenable. 02:17:00.000 --> 02:17:02.410 Amenable or amendable. 02:17:02.410 --> 02:17:06.793 I will, the maker of this motion accept my request. 02:17:10.010 --> 02:17:15.010 You know, you know, if you, 02:17:15.270 --> 02:17:17.510 if you want to make the amendment, I guess, 02:17:17.510 --> 02:17:18.427 I guess my only question that 02:17:18.427 --> 02:17:21.560 and I think before we do that is to go back to legal 02:17:21.560 --> 02:17:26.560 counsel, and I'm not, I know that we, we put out a few, 02:17:27.030 --> 02:17:32.030 isn't it is it, is it, is it permissible to, 02:17:34.360 --> 02:17:37.197 to add after we've gone through the process? 02:17:37.197 --> 02:17:41.330 And that really was not part of the RFQ is, 02:17:41.330 --> 02:17:46.330 is that even to add that contingency at the end, 02:17:47.650 --> 02:17:51.190 is that something that falls within the contracting 02:17:51.190 --> 02:17:55.580 guidelines by the state? 02:17:55.580 --> 02:17:58.273 I think what we need to do here, we don't have, 02:17:59.560 --> 02:18:01.207 there's no friendly amendments, so Ms. 02:18:01.207 --> 02:18:05.270 Perez, if you would like to amend the motion, you may do. 02:18:05.270 --> 02:18:09.780 So, and then we could have legal staff or PSS staff have a 02:18:09.780 --> 02:18:12.140 discussion if that's specifically worded 02:18:14.210 --> 02:18:16.540 is proper or is okay, 02:18:16.540 --> 02:18:19.920 but you have a specific amendment you had or meant that you 02:18:19.920 --> 02:18:21.570 would like to make to the motion. 02:18:23.520 --> 02:18:24.580 I believe so, yes. 02:18:24.580 --> 02:18:27.430 And I would ask Ms. Cruz for her assistance here, please. 02:18:29.080 --> 02:18:34.080 I imagine that the new language would say by perhaps now no 02:18:35.050 --> 02:18:37.250 longer unanimous consent, 02:18:37.250 --> 02:18:40.120 the committee recommends that the State Board of Education 02:18:40.120 --> 02:18:43.920 approved DLA Piper, LLP for the bond guarantee, 02:18:43.920 --> 02:18:47.320 program capacity and texts, texts, council, 02:18:47.320 --> 02:18:50.610 scope of legal services and et cetera, et cetera, 02:18:50.610 --> 02:18:53.150 with the contingency that they heard, 02:18:53.150 --> 02:18:58.150 that they perform good faith efforts to subcontract or build 02:18:58.820 --> 02:19:01.963 capacity with hub certified firms. 02:19:02.890 --> 02:19:05.080 Okay, and I don't, when we're on split screen, 02:19:05.080 --> 02:19:06.030 I can't see everyone. 02:19:06.030 --> 02:19:11.030 So I just ask anyone to speak up if they have a second, 02:19:11.110 --> 02:19:14.077 if they're seconding that motion we have, okay. 02:19:14.077 --> 02:19:16.623 So we have a motion and a second. 02:19:18.020 --> 02:19:20.000 So to Tom's point prior, 02:19:20.000 --> 02:19:24.143 would PSF staff or legal staff like to speak on, 02:19:25.630 --> 02:19:27.233 I guess whether that's proper? 02:19:37.450 --> 02:19:40.113 Well, I think a thing is, I don't know. 02:19:42.690 --> 02:19:44.160 So, I mean, 02:19:44.160 --> 02:19:47.510 that's something we probably have to check with the AIG as 02:19:47.510 --> 02:19:51.810 to whether would it would, it would upset the original RFQ. 02:19:51.810 --> 02:19:52.780 You have, 02:19:52.780 --> 02:19:55.960 you have a little bit of room within what you've said to 02:19:55.960 --> 02:20:00.960 negotiate your contract, but for instance, I mean, 02:20:01.000 --> 02:20:06.000 I think we could ask, but there's no, like if they say no, 02:20:07.360 --> 02:20:08.730 then I guess the result would be, 02:20:08.730 --> 02:20:10.530 we couldn't enter into the contract. 02:20:14.140 --> 02:20:17.980 Any other comments from NSF or legal staff from 02:20:23.580 --> 02:20:24.613 hearing none. 02:20:30.390 --> 02:20:32.340 It occurs to me that, you know, 02:20:32.340 --> 02:20:33.840 if this is what we want to do, 02:20:33.840 --> 02:20:35.883 this is what we don't want to do necessarily is again, 02:20:35.883 --> 02:20:38.823 we don't want to delay the process. 02:20:39.930 --> 02:20:42.890 And, and I'm wondering, and I don't know how 02:20:43.860 --> 02:20:44.693 how the maker of 02:20:44.693 --> 02:20:46.083 the amendment feels about this is that, 02:20:47.890 --> 02:20:50.060 that rather than making it part of the motion, 02:20:50.060 --> 02:20:52.220 because once you make it for the motion, then, 02:20:52.220 --> 02:20:57.220 then you create some legal requirement that in other words, 02:20:57.630 --> 02:21:02.493 if they, if we make it a contingency, 02:21:04.470 --> 02:21:08.770 man, then I would assume then that it would also create a 02:21:08.770 --> 02:21:13.020 requirement that they do some sort of documentation on this. 02:21:13.020 --> 02:21:17.533 And it requires additional work on their part, 02:21:18.690 --> 02:21:20.510 which means when you're dealing with, 02:21:20.510 --> 02:21:23.373 with attorneys probably additional costs, 02:21:26.360 --> 02:21:31.360 what would it be more prudent than is to ask the 02:21:31.440 --> 02:21:36.440 Commissioner to rather than, than, than a contingency, 02:21:37.470 --> 02:21:40.830 that for the Commissioner to encourage the firm to do that, 02:21:40.830 --> 02:21:43.580 rather than making it a contingency in creating the 02:21:43.580 --> 02:21:46.560 possibility of additional hours, additional work, 02:21:46.560 --> 02:21:51.110 visual documentation, and additional cost to the taxpayer. 02:21:51.110 --> 02:21:56.110 And, you know, maybe that's in the ask him that to the Von. 02:21:56.290 --> 02:22:00.480 And, and so in other words, 02:22:00.480 --> 02:22:02.600 and then I guess my question to legal is, 02:22:02.600 --> 02:22:04.570 is that if we make it a contingency, that, that, that, 02:22:04.570 --> 02:22:08.440 that creates additional requirements that were not part of 02:22:08.440 --> 02:22:11.220 the original RFQ, but, you know, 02:22:11.220 --> 02:22:13.840 it's part of a Board motion that would require some sort of 02:22:13.840 --> 02:22:18.723 action by by the firm. 02:22:21.250 --> 02:22:23.600 I'd like to make a point of clarification here, 02:22:23.600 --> 02:22:25.240 if I could please. 02:22:25.240 --> 02:22:26.200 So, so. 02:22:26.200 --> 02:22:31.200 I'm not asking that the contract now go into some kind of 02:22:31.700 --> 02:22:34.210 negotiation or pre-contract negotiation. 02:22:34.210 --> 02:22:38.470 I'm simply asking that they perform a good faith effort. 02:22:38.470 --> 02:22:42.860 They still aren't required to contract or subcontract with a 02:22:42.860 --> 02:22:43.693 hub. 02:22:43.693 --> 02:22:47.740 So I'm not sure where the additional cost is being passed on 02:22:47.740 --> 02:22:49.870 to the taxpayer here. 02:22:49.870 --> 02:22:53.053 I don't believe that that's what I'm asking for. 02:22:54.450 --> 02:22:56.410 And, and so in part of their RFQ, 02:22:56.410 --> 02:22:59.280 they submitted that there'll be self-performing that, 02:22:59.280 --> 02:23:01.610 that even that's not changing. 02:23:01.610 --> 02:23:06.080 And so for them to make a good faith effort to build 02:23:06.080 --> 02:23:09.940 capacity with the hub still does not require them to 02:23:09.940 --> 02:23:11.423 contract with a hub. 02:23:13.000 --> 02:23:13.833 I think, 02:23:13.833 --> 02:23:18.380 I think we're really asking for minimum good faith effort 02:23:18.380 --> 02:23:20.030 here. 02:23:20.030 --> 02:23:25.030 And, and based on there, DLA Piper, his own webpage, 02:23:25.650 --> 02:23:28.810 I can't imagine that this would be something that they 02:23:28.810 --> 02:23:30.990 wouldn't agree to, I mean, they, 02:23:30.990 --> 02:23:34.670 they make a very clear statement on the 5th of June under 02:23:34.670 --> 02:23:37.250 flooring, their own commitment to racial equity. 02:23:37.250 --> 02:23:40.090 I can share their web with, if you want to do that. 02:23:40.090 --> 02:23:45.090 And so I don't think that asking them for a good faith 02:23:45.710 --> 02:23:50.170 effort would, would, would result in them backing out of, 02:23:50.170 --> 02:23:51.863 of this RFQ. 02:23:54.070 --> 02:23:55.570 You want to respond to that? 02:23:57.230 --> 02:24:02.083 I guess, I guess my question is contingency contingent. 02:24:04.090 --> 02:24:05.703 What does that mean? 02:24:06.670 --> 02:24:09.233 How would that then be expressed, 02:24:11.740 --> 02:24:14.023 demonstrate based on that contingency, 02:24:23.230 --> 02:24:24.123 Mr, Cortez? 02:24:31.480 --> 02:24:34.540 I mean, I guess the way, the way I understand it is 02:24:34.540 --> 02:24:37.170 and I get your concerns, Mr. 02:24:37.170 --> 02:24:40.460 Where she's talking about the word contingency, 02:24:40.460 --> 02:24:43.050 but everything that follows does all we have, 02:24:43.050 --> 02:24:45.390 all we're asking is that they make a good faith effort. 02:24:45.390 --> 02:24:48.520 So I understood it as Georgina, 02:24:48.520 --> 02:24:49.970 as member of bed has described it. 02:24:49.970 --> 02:24:54.020 And I personally don't see again, if they do it, 02:24:54.020 --> 02:24:55.100 if they don't do it, 02:24:55.100 --> 02:24:58.610 we're just simply asking for them to consider this moving 02:24:58.610 --> 02:25:00.700 forward, despite the fact that they are not a hub, 02:25:00.700 --> 02:25:03.220 that if they contract with anybody that they consider 02:25:03.220 --> 02:25:05.520 contracting with with them. 02:25:05.520 --> 02:25:07.280 So I don't think it changes 02:25:09.480 --> 02:25:12.650 anything from what was put out in 02:25:14.740 --> 02:25:16.693 the original RFP. 02:25:17.680 --> 02:25:22.680 I think it's just us asking them to please give this 02:25:23.030 --> 02:25:24.320 consideration. 02:25:24.320 --> 02:25:26.163 If you contract with somebody. 02:25:31.600 --> 02:25:32.893 Mr. chair, Matt. 02:25:35.320 --> 02:25:36.430 Thank you, sir. 02:25:36.430 --> 02:25:41.430 If the word contingency is perhaps a deal breaker, 02:25:42.140 --> 02:25:45.090 I would say that number one, member Maynard, 02:25:45.090 --> 02:25:49.610 I think it is absolutely acceptable to have the Commissioner 02:25:49.610 --> 02:25:50.970 strongly encourage, 02:25:50.970 --> 02:25:54.560 but maybe we can say that they engage in a good faith 02:25:54.560 --> 02:25:57.703 effort, and does that make it more acceptable? 02:25:59.900 --> 02:26:02.110 So your tendency, 02:26:02.110 --> 02:26:06.910 what to engage or how would you add that now, 02:26:06.910 --> 02:26:11.910 what you have Ms. Pettis on your amendment is with the 02:26:12.420 --> 02:26:15.300 contingency that they perform good faith efforts to build 02:26:15.300 --> 02:26:17.983 capacity with hub certified firms. 02:26:20.420 --> 02:26:23.793 Perhaps we can revise that to say with, 02:26:25.160 --> 02:26:27.773 but they engage in a good faith effort. 02:26:29.370 --> 02:26:32.370 Or with the request that they perform a good faith effort. 02:26:33.310 --> 02:26:37.340 Is that acceptable to you remember Maynard with, 02:26:37.340 --> 02:26:38.493 with the inclusion that, 02:26:38.493 --> 02:26:41.780 that the Commissioner provide strong encouragement? 02:26:41.780 --> 02:26:44.800 I don't think it's up to Mr. Maynard again, 02:26:44.800 --> 02:26:47.430 there's not friendly amendments, it's the question is when, 02:26:47.430 --> 02:26:50.353 what amendment do you want to make? 02:26:53.300 --> 02:26:57.740 I accept the revision that you're presented chair Ellis 02:26:57.740 --> 02:27:00.820 and I but I would like to hear from member Maynard, 02:27:00.820 --> 02:27:04.270 if he is as the maker of the motion, 02:27:04.270 --> 02:27:06.940 if he is comfortable with that. 02:27:06.940 --> 02:27:09.060 Oh, for K and just Ms. Perez, 02:27:09.060 --> 02:27:13.310 please clarify if this is correct with the request would 02:27:13.310 --> 02:27:15.263 replace with the contingency. 02:27:17.330 --> 02:27:19.777 You might want to ask if there's any. 02:27:23.330 --> 02:27:27.930 To so that I'm seeing none. 02:27:27.930 --> 02:27:30.250 And I think the sped has asked Mr. Maynard, 02:27:30.250 --> 02:27:32.980 his thoughts on it, and then I'll call him. 02:27:32.980 --> 02:27:37.980 I don't know that it, I mean, I think that it, any time, 02:27:38.690 --> 02:27:42.893 the weekend we can affirm, you know, our, our commitment to, 02:27:44.190 --> 02:27:47.630 to inclusion and diversity, I think it's a good thing. 02:27:47.630 --> 02:27:48.753 And, you know, 02:27:49.680 --> 02:27:53.500 I don't think that we just need to create a, 02:27:56.150 --> 02:27:59.170 I guess what I'm saying is we don't need to bait and switch 02:27:59.170 --> 02:28:02.010 where we, when we put out an RFQ and then, then after, 02:28:02.010 --> 02:28:03.070 after, after the fact, 02:28:03.070 --> 02:28:05.723 then we start to add a bunch of things to it. 02:28:06.690 --> 02:28:11.380 But, but I think that that's a pretty fair assessment, like, 02:28:11.380 --> 02:28:14.330 well, you know, and in the course of doing that, the Board, 02:28:18.520 --> 02:28:21.133 a commitment to racial. 02:28:23.200 --> 02:28:24.870 Racial, diversity, diversity of gender, 02:28:24.870 --> 02:28:25.703 that sort of thing, 02:28:25.703 --> 02:28:28.000 and we would just hope that you conduct your business in a 02:28:28.000 --> 02:28:31.360 way that reflects that and reflects their, 02:28:31.360 --> 02:28:35.720 their own commitment to equity that they they've expressed 02:28:35.720 --> 02:28:36.553 on on the forefront, 02:28:36.553 --> 02:28:41.353 which I don't think initially an issue with that. 02:28:42.370 --> 02:28:43.970 I started to call on Mr. Cortez, 02:28:45.390 --> 02:28:46.770 just so I can keep track of everyone. 02:28:46.770 --> 02:28:48.320 And then I've got this Cargill. 02:28:50.870 --> 02:28:52.603 Okay, so you just called on me. 02:28:53.610 --> 02:28:55.300 Mr. Cortez had raised his hand earlier. 02:28:55.300 --> 02:28:58.203 He didn't have, you'll be after Mr. Cortez. 02:28:59.370 --> 02:29:01.980 I thought I had already made my comments, did I not? 02:29:01.980 --> 02:29:04.423 Was I speaking and not turn off my mute button? 02:29:05.390 --> 02:29:06.390 If you have nothing? 02:29:07.250 --> 02:29:11.480 I was just, I mean, I'm fine with the changes 02:29:11.480 --> 02:29:13.340 that Ms. Pettis is making. 02:29:13.340 --> 02:29:16.413 I thought it was also fine with contingency because they 02:29:16.413 --> 02:29:21.413 will just, you know, they make an attempt, we're not, 02:29:22.150 --> 02:29:23.980 we're not forcing this upon them. 02:29:23.980 --> 02:29:28.680 And so it doesn't change the net effect of what the proposal 02:29:28.680 --> 02:29:33.523 said, and so I was just agreeing with the member better and 02:29:35.000 --> 02:29:37.630 whether she goes with her original language or this other 02:29:37.630 --> 02:29:40.313 language, I'm good with this. 02:29:41.840 --> 02:29:43.630 I've got Ms. Cargill. 02:29:43.630 --> 02:29:44.463 Yeah, 02:29:44.463 --> 02:29:48.840 my only concern and I don't know if Von or whoever can come 02:29:48.840 --> 02:29:53.250 in on this because I answer RFQ and PS with my professional 02:29:53.250 --> 02:29:55.890 development work, my consulting. 02:29:55.890 --> 02:30:00.820 And so, you know, first of all, does this set a precedent? 02:30:00.820 --> 02:30:02.610 And then second of all, 02:30:02.610 --> 02:30:06.580 does it affect the fact that they've already answered that? 02:30:06.580 --> 02:30:07.413 You know, 02:30:07.413 --> 02:30:10.170 even though we're just gently encouraging or whatever, 02:30:10.170 --> 02:30:12.460 I'm not sure what the language has ended up being if you'll 02:30:12.460 --> 02:30:14.443 read that again in a second, Mr. chair, 02:30:17.240 --> 02:30:19.240 but just want to make sure we're not setting a precedent of 02:30:19.240 --> 02:30:22.683 going back and adding things that, 02:30:23.750 --> 02:30:25.520 because this has already been answered. 02:30:25.520 --> 02:30:28.620 So I don't know if Bon or someone who deals with contracts 02:30:28.620 --> 02:30:29.940 can answer. 02:30:29.940 --> 02:30:30.773 It's not, 02:30:30.773 --> 02:30:34.040 I think your problem is I did not anticipate having a deep 02:30:34.040 --> 02:30:37.840 in the weeds discussion on contracting law and I'm not the 02:30:37.840 --> 02:30:39.520 appropriate person for that, cause, 02:30:39.520 --> 02:30:42.470 cause I don't know when we get down to, 02:30:42.470 --> 02:30:46.580 to that level of detail, generally, 02:30:46.580 --> 02:30:50.790 like we can negotiate a contractual terms that were within 02:30:50.790 --> 02:30:53.640 the framework of, of the RFQ. 02:30:53.640 --> 02:30:58.383 If if I understand the intent here, it is 02:31:02.010 --> 02:31:03.140 really to go back in. 02:31:03.140 --> 02:31:08.140 And when we negotiate the contract to make clear to the law 02:31:09.430 --> 02:31:11.000 firm, 02:31:11.000 --> 02:31:16.000 that we would like them to seek out hub opportunities under, 02:31:17.120 --> 02:31:20.453 under the contract, and they should a good faith effort. 02:31:21.330 --> 02:31:22.193 In doing that. 02:31:23.850 --> 02:31:27.020 And I mean, if, if I just had to guess that, 02:31:27.020 --> 02:31:29.680 I think you're okay, I just don't know what we do. 02:31:29.680 --> 02:31:31.143 If they say no, 02:31:37.390 --> 02:31:39.540 Mr, chair, can you, would you read that? 02:31:39.540 --> 02:31:43.130 What the language is right now, please? 02:31:43.130 --> 02:31:44.390 It is 02:31:44.390 --> 02:31:49.390 the amendment is with the request that they perform good 02:31:51.440 --> 02:31:55.233 faith efforts to build capacity with pubs certified farms. 02:32:06.740 --> 02:32:09.997 Any more questions Ms. cargo, before I go to the sorority, 02:32:14.787 --> 02:32:16.603 I have to find my button. 02:32:18.290 --> 02:32:21.340 We don't know if that's already required in state contracts 02:32:22.480 --> 02:32:23.970 or do we have someone we can ask? 02:32:23.970 --> 02:32:25.633 Is that not already required? 02:32:27.740 --> 02:32:28.610 We're going to install it again, 02:32:28.610 --> 02:32:30.280 but I'll take his point that we didn't have someone on 02:32:30.280 --> 02:32:32.030 contract here, right? 02:32:33.490 --> 02:32:37.090 Yeah, sorry to put you on the spot. 02:32:37.090 --> 02:32:39.460 That's okay, I think what we've said is when we, 02:32:39.460 --> 02:32:44.460 when we go out, we, every con every RFQ requires a, a hub. 02:32:47.920 --> 02:32:50.220 So I mean, that's part of 02:32:50.220 --> 02:32:55.220 just contracting practices for every state, every contract, 02:32:57.060 --> 02:33:01.083 every state agency, every state contract know RFQ. 02:33:01.940 --> 02:33:04.243 They, they have to respond with a plan. 02:33:07.190 --> 02:33:08.023 All right, that's all. 02:33:08.023 --> 02:33:12.833 I think with respect to the current RFQ, 02:33:19.450 --> 02:33:20.370 there wasn't indication. 02:33:20.370 --> 02:33:24.100 I believe by the firm that they're going to self self 02:33:24.100 --> 02:33:25.260 perform. 02:33:25.260 --> 02:33:29.480 And we're not as Mr. Timmons indicated earlier, 02:33:29.480 --> 02:33:32.420 most legal counselors are going to self perform and not 02:33:32.420 --> 02:33:34.520 subcontract, I think the language though, 02:33:34.520 --> 02:33:38.890 that's been submitted, just requests, a performer, 02:33:38.890 --> 02:33:41.150 good faith effort to build capacity. 02:33:41.150 --> 02:33:43.930 It doesn't require such contracting. 02:33:43.930 --> 02:33:47.510 So the point of it being not inconsistent with what they 02:33:47.510 --> 02:33:51.873 provided in their response, it's probably appropriate in my. 02:34:27.710 --> 02:34:30.130 Okay, before I do that, one more hand raised let's Mr. 02:34:30.130 --> 02:34:34.450 Mercer and Mr. chairman, I've got three screens. 02:34:34.450 --> 02:34:35.283 Can you hear me? 02:34:35.283 --> 02:34:37.720 I guess I hope I got ya. 02:34:37.720 --> 02:34:39.720 I never want to forget that the lessons were learned 02:34:39.720 --> 02:34:43.670 learning, I want to go back to this story. 02:34:43.670 --> 02:34:47.550 What is this about our Rubik's? 02:34:47.550 --> 02:34:50.430 Cause we need to look at our rubrics in the future because 02:34:50.430 --> 02:34:54.470 whatever my term, whatever weight we have Bahamas weight, 02:34:54.470 --> 02:34:56.630 we look at that weight and make sure it's appropriate for 02:34:56.630 --> 02:34:57.490 where the world wants to move. 02:34:57.490 --> 02:35:00.870 So we want to forget that and measure my years of contract. 02:35:00.870 --> 02:35:03.410 And I know at the very end, whenever you change, 02:35:03.410 --> 02:35:05.640 whenever you have someone say, Oh, we're choosing dr. 02:35:05.640 --> 02:35:08.090 Ellis, by the way, we have a change, 02:35:08.090 --> 02:35:10.790 the contractor would be all smiles because whatever change 02:35:10.790 --> 02:35:13.730 we have would just be added to the already the quote or bid 02:35:13.730 --> 02:35:15.050 they had on there. 02:35:15.050 --> 02:35:17.810 Having said that, if I listened to what Mr. 02:35:17.810 --> 02:35:21.083 Campbell, just Chuck, it just said, I think it's a general. 02:35:21.083 --> 02:35:22.970 They've got it, they may do it in house. 02:35:22.970 --> 02:35:25.150 But if it's a gentle reminder to know, Ms. 02:35:25.150 --> 02:35:27.910 Perez is telling him, Hey, if you go outside and look, 02:35:27.910 --> 02:35:28.743 we asking you, 02:35:28.743 --> 02:35:33.110 you a B be diligent and look at historically underserved 02:35:33.110 --> 02:35:36.190 businesses, so I believe the way it's stated now, 02:35:36.190 --> 02:35:38.680 the softer language, not contingent, 02:35:38.680 --> 02:35:40.040 but we're asking you to look at it. 02:35:40.040 --> 02:35:41.763 I could accept that amendment. 02:35:43.430 --> 02:35:44.263 Thank you, Mr. 02:35:44.263 --> 02:35:45.920 Mercer, I don't see any other hands raised. 02:35:45.920 --> 02:35:47.940 So I think the next, 02:35:47.940 --> 02:35:51.230 our next step is to take a vote on this. 02:35:51.230 --> 02:35:53.673 Pedis is amendment to the main motion. 02:35:55.610 --> 02:35:56.443 Is that correct? 02:35:56.443 --> 02:35:57.276 Ms. Kay. 02:36:07.100 --> 02:36:07.933 Kay? 02:36:07.933 --> 02:36:08.766 Are you there? 02:36:08.766 --> 02:36:09.599 Can't see you. 02:36:10.790 --> 02:36:12.963 I have responded and said yes, sir. 02:36:15.570 --> 02:36:19.880 All right, so that being said, we'll take the vote. 02:36:19.880 --> 02:36:24.880 And I would ask all those in favor of miss Petter says 02:36:24.950 --> 02:36:29.360 amendment as documented on the shares screen. 02:36:29.360 --> 02:36:31.223 Please do so by raising your hand, 02:36:59.190 --> 02:37:02.253 I'm sorry, I'm having a really hard time counting folks. 02:37:04.570 --> 02:37:05.743 Keep your hands raised. 02:37:30.560 --> 02:37:31.670 What a roll call, vote. 02:37:31.670 --> 02:37:33.480 Be more helpful here. 02:37:33.480 --> 02:37:35.680 No, just give me a moment. 02:37:35.680 --> 02:37:36.513 Okay. 02:37:57.410 --> 02:37:59.993 So I believe I see 12 in favor. 02:38:01.400 --> 02:38:04.570 Please, lower your hands and all those opposed. 02:38:04.570 --> 02:38:06.693 Please do the same by raising your hand. 02:38:15.550 --> 02:38:18.060 I believe I see one against. 02:38:18.060 --> 02:38:18.893 Okay. 02:38:18.893 --> 02:38:22.850 So the motion passes and I do believe that brings us back to 02:38:22.850 --> 02:38:25.220 the main motion, so if everyone's ready, 02:38:25.220 --> 02:38:28.913 we will take the vote on the main motion as amended. 02:38:31.650 --> 02:38:32.483 Ms. Martinez. 02:38:32.483 --> 02:38:33.980 You just told me when you're ready. 02:38:33.980 --> 02:38:35.250 Go ahead. 02:38:35.250 --> 02:38:38.230 Okay, all those in favor of the main motion as amended, 02:38:38.230 --> 02:38:40.333 please show by the raising of your hand. 02:38:54.480 --> 02:38:55.980 See 13 in favor. 02:38:56.860 --> 02:38:58.720 All those opposed, please lower your hands, 02:38:58.720 --> 02:39:00.520 all those opposed, please show. 02:39:00.520 --> 02:39:01.873 So by raising your hand. 02:39:05.350 --> 02:39:07.320 One against. 02:39:07.320 --> 02:39:11.273 Okay, the motion carries and the motion is passed, 02:39:12.380 --> 02:39:17.373 and I believe that should conclude the Consent Agenda. 02:39:19.970 --> 02:39:20.803 All right. 02:39:20.803 --> 02:39:23.403 And that will actually move us to item number two today. 02:39:25.090 --> 02:39:25.923 Video, 02:39:25.923 --> 02:39:30.650 the full proposed new 19 TAC Chapter 61 school district, 02:39:30.650 --> 02:39:33.450 Subchapter B special purpose districts, 02:39:33.450 --> 02:39:37.670 60 one.one Oh one applicant ability of state law for special 02:39:37.670 --> 02:39:41.440 purpose school districts, and I believe I have Mr. 02:39:41.440 --> 02:39:42.693 Rowley to call on this. 02:39:45.800 --> 02:39:46.890 Okay, so we're, 02:39:46.890 --> 02:39:50.110 we're talking about the recommendation from the Board then? 02:39:50.110 --> 02:39:50.943 Correct. 02:39:52.850 --> 02:39:53.763 Okay. 02:39:56.770 --> 02:39:58.460 I didn't know, that was the first one. 02:39:58.460 --> 02:39:59.293 Are 02:39:59.293 --> 02:40:03.270 are we not voting on the recommendations with regard to the 02:40:03.270 --> 02:40:06.103 PSF matters also now. 02:40:07.830 --> 02:40:08.690 Mr. Rally, 02:40:08.690 --> 02:40:11.000 would it be helpful for me to pull it up on the screen for 02:40:11.000 --> 02:40:11.833 you? 02:40:12.760 --> 02:40:14.100 But I thought we. 02:40:14.100 --> 02:40:18.140 Were, there were other agenda items that we recommended 02:40:19.570 --> 02:40:22.490 that had to do with the distribution rate and 02:40:25.850 --> 02:40:30.740 and then also whatever it was about the allocation. 02:40:32.060 --> 02:40:34.773 So we just completed the Consent Agenda. 02:40:36.310 --> 02:40:38.590 That was all consent, so as Dr. Ellis said, 02:40:38.590 --> 02:40:42.400 we are now just getting to item number two committee of the 02:40:42.400 --> 02:40:43.260 full Board, okay. 02:40:43.260 --> 02:40:44.093 Yeah, well, I didn't, 02:40:44.093 --> 02:40:46.270 I didn't know that those stayed on consent. 02:40:46.270 --> 02:40:47.103 So sorry about that. 02:40:47.103 --> 02:40:48.933 That's okay, so. 02:40:50.210 --> 02:40:53.030 So this is on check me on this Monica, 02:40:53.030 --> 02:40:55.850 but it's on page five of the committee, 02:40:55.850 --> 02:41:00.850 the full Board minutes, official agenda item number two, 02:41:02.500 --> 02:41:06.820 I believe and recommended the State Board of Education 02:41:06.820 --> 02:41:10.050 approved for first reading and filing authorization proposed 02:41:10.050 --> 02:41:13.820 new 19 TAC Chapter 61 school districts. 02:41:13.820 --> 02:41:17.650 Subject B special purpose school districts sanctions 02:41:17.650 --> 02:41:22.650 61.101 applicability of state law for special purpose school 02:41:22.970 --> 02:41:25.973 districts as amended by the committee, the full Board. 02:41:28.890 --> 02:41:31.540 All right, we have the motion as presented. 02:41:31.540 --> 02:41:33.283 Is there any objection? 02:41:36.860 --> 02:41:38.343 Any further discussion? 02:41:39.420 --> 02:41:40.610 Okay, so I'm sorry. 02:41:40.610 --> 02:41:43.470 There was no objection, so the motion passes, 02:41:43.470 --> 02:41:44.990 but correct with Skype. 02:41:46.950 --> 02:41:49.240 That will work, yes. 02:41:49.240 --> 02:41:50.073 Okay. 02:41:50.940 --> 02:41:51.773 Thank you, members. 02:41:51.773 --> 02:41:53.937 We'll move to item number three. 02:41:53.937 --> 02:41:56.740 And I believe that was all we have for the committee of the 02:41:56.740 --> 02:41:57.980 full Board, right? 02:41:57.980 --> 02:41:59.270 I think so. 02:41:59.270 --> 02:42:00.230 Okay. 02:42:00.230 --> 02:42:02.880 Now we will go into the committee of instructions and 02:42:03.770 --> 02:42:05.230 we're going to start with item number three, 02:42:05.230 --> 02:42:09.750 which is proposed amendments to 19 TAC Chapter 74 curriculum 02:42:09.750 --> 02:42:12.070 requirements of Chapter, a required curriculum, 02:42:12.070 --> 02:42:17.070 74.1 essential knowledge and skills and 74.3 description of 02:42:17.240 --> 02:42:20.170 a required secondary curriculum, and I'll call them. 02:42:21.240 --> 02:42:22.980 Before you do chairman. 02:42:22.980 --> 02:42:25.790 I just want to remind Board members that if their cameras 02:42:25.790 --> 02:42:29.323 are off, they will be shown as absent for these votes. 02:42:33.640 --> 02:42:34.473 Thank you. 02:42:34.473 --> 02:42:37.140 How's are on and they're not visible. 02:42:37.140 --> 02:42:39.270 If their cameras are on and they're not visible. 02:42:39.270 --> 02:42:41.520 I'm also marking them as absent for the vote. 02:42:46.830 --> 02:42:47.663 Yes. 02:42:50.290 --> 02:42:51.480 Give me just a minute. 02:42:51.480 --> 02:42:52.773 Lost my place here. 02:42:57.600 --> 02:42:58.433 Alright. 02:42:59.660 --> 02:43:01.690 First one is 02:43:03.740 --> 02:43:08.740 proposed amendments to 19 TAC Chapter 74 curriculum 02:43:08.910 --> 02:43:11.680 requirements, subject, or a required curriculum, 02:43:11.680 --> 02:43:16.680 74.1 essential knowledge and skills and 74.3 description of 02:43:18.110 --> 02:43:20.040 a required secondary curriculum. 02:43:20.040 --> 02:43:23.340 It's refers to reading and following authorization. 02:43:23.340 --> 02:43:26.860 And on behalf of the committee on instruction, 02:43:26.860 --> 02:43:29.410 I moved at the State Board of Education approved for first 02:43:29.410 --> 02:43:33.130 reading and falling off the proposed amendments to 19 TAC 02:43:33.130 --> 02:43:36.560 Chapter 74 curriculum requirements, Subchapter, 02:43:36.560 --> 02:43:38.400 a required curriculum, 02:43:38.400 --> 02:43:43.170 74.1 essential knowledge and skills and 74.3 description of 02:43:43.170 --> 02:43:45.753 a required secondary curriculum as amended. 02:43:49.120 --> 02:43:51.053 Is there any discussion on the subtle, 02:43:54.833 --> 02:43:58.320 just go ahead and vote, I think that's probably a better, 02:43:58.320 --> 02:44:01.310 I would ask those in favor of this motion. 02:44:01.310 --> 02:44:02.960 Please show by raising your hand, 02:44:15.370 --> 02:44:19.060 You can lower your hands, that's 14 in favor, 02:44:19.060 --> 02:44:20.430 all those opposed, please do. 02:44:20.430 --> 02:44:24.543 So all those opposed, please show by raising your hand, 02:44:31.990 --> 02:44:35.440 There is a majority in favor in the recommendation is 02:44:35.440 --> 02:44:38.390 adopted, but I'll move us on to item number four, 02:44:38.390 --> 02:44:42.070 which is proposed new 19 TAC Chapter one 20 other central 02:44:42.070 --> 02:44:44.870 knowledge and skills, so Chapter eight character traits. 02:44:46.360 --> 02:44:47.600 Yes. 02:44:47.600 --> 02:44:48.433 Thank you, Mr. chair, 02:44:48.433 --> 02:44:51.110 on behalf of the committee on instruction that the state 02:44:51.110 --> 02:44:53.960 Board of education approved for first reading and following 02:44:53.960 --> 02:44:58.390 authorization proposed new 19 TAC Chapter one 20 other 02:44:58.390 --> 02:45:02.090 essential knowledge and other essential knowledge and 02:45:02.090 --> 02:45:04.880 skills, subject character traits. 02:45:04.880 --> 02:45:07.163 And can I say something real quick? 02:45:09.450 --> 02:45:12.500 We, I think we all pretty much felt that this was kind of 02:45:12.500 --> 02:45:15.020 redundant because our teachers do this every day, 02:45:15.020 --> 02:45:16.360 all day long. 02:45:16.360 --> 02:45:19.340 They start in the morning and they teach character traits 02:45:19.340 --> 02:45:21.980 from the time the kids get there until the time they leave. 02:45:21.980 --> 02:45:24.900 So, but this just makes it totally official. 02:45:24.900 --> 02:45:27.130 So we want to thank the teachers because we know they're 02:45:27.130 --> 02:45:28.333 already doing this. 02:45:29.340 --> 02:45:31.013 Thank you for that note. 02:45:31.950 --> 02:45:34.410 Is there any discussion on steam as hard as hand 02:45:46.950 --> 02:45:50.117 that the teachers are already expected 02:45:57.270 --> 02:45:58.453 specifically, 02:46:21.950 --> 02:46:26.950 I'm telling you, 02:46:39.400 --> 02:46:43.090 but I saw 02:46:49.220 --> 02:46:53.683 the legislature because we had to have a separate document. 02:47:01.840 --> 02:47:04.980 How we're going to solve this Meltem alone. 02:47:04.980 --> 02:47:05.813 Would you like for me to address that? 02:47:05.813 --> 02:47:08.090 Yes ma'am please. 02:47:08.090 --> 02:47:10.580 So I think there are two things Ms. Hardy, 02:47:10.580 --> 02:47:14.060 to your point about your belief that everything is in the 02:47:14.060 --> 02:47:14.920 social studies. 02:47:14.920 --> 02:47:17.850 As I explained to the committee on instruction yesterday, 02:47:17.850 --> 02:47:22.850 we took a much more conservative and literal approach to 02:47:24.380 --> 02:47:27.480 identifying where that is in the standards. 02:47:27.480 --> 02:47:30.750 Because as many of you have have said before, 02:47:30.750 --> 02:47:34.520 you've got really good teachers out there will know to do X, 02:47:34.520 --> 02:47:35.353 Y, or Z. 02:47:35.353 --> 02:47:37.160 That doesn't mean that everybody is. 02:47:37.160 --> 02:47:41.530 And so while I can absolutely appreciate that you would have 02:47:41.530 --> 02:47:46.343 social studies teachers who would take the language and 02:47:47.250 --> 02:47:49.850 identify where that could be incorporated. 02:47:49.850 --> 02:47:51.470 It's not in your standards. 02:47:51.470 --> 02:47:54.670 And there is a statutory requirement that you put it in your 02:47:54.670 --> 02:47:55.720 standards. 02:47:55.720 --> 02:47:59.260 So the alternative is you open up those subjects and change 02:47:59.260 --> 02:48:01.330 your standards, which 02:48:01.330 --> 02:48:03.360 my understanding from the committee on instruction, 02:48:03.360 --> 02:48:04.903 that was not your desire. 02:48:05.830 --> 02:48:08.170 We offered this alternative approach, 02:48:08.170 --> 02:48:11.840 which the committee of the full Board agreed to add a 02:48:11.840 --> 02:48:16.840 previous meeting and in terms of what you can do or what we 02:48:17.950 --> 02:48:20.950 can collectively do to help teachers understand that this is 02:48:20.950 --> 02:48:24.380 not an in addition to what we discussed with the committee 02:48:24.380 --> 02:48:25.680 on instruction yesterday, 02:48:25.680 --> 02:48:30.080 is that we can use the text guides to help teachers to make 02:48:30.080 --> 02:48:31.900 those connections. 02:48:31.900 --> 02:48:35.220 I also liken this to the incorporation of the English 02:48:35.220 --> 02:48:37.130 language proficiency standards. 02:48:37.130 --> 02:48:39.810 It's a separate set of standards in your administrative 02:48:39.810 --> 02:48:41.450 role, but they don't, 02:48:41.450 --> 02:48:44.180 they're not taught separate and apart from the content. 02:48:44.180 --> 02:48:46.800 And so we do believe that that's a way that we can help 02:48:46.800 --> 02:48:50.250 teachers who don't already have that understanding to 02:48:50.250 --> 02:48:53.240 understand where and how they can make those connections 02:48:53.240 --> 02:48:55.140 with the content that they're already. 02:49:03.000 --> 02:49:05.130 And I appreciate that. 02:49:05.130 --> 02:49:09.960 I realized your hands are tied with whatever anyway, 02:49:09.960 --> 02:49:11.477 but the fact is we have 02:49:16.253 --> 02:49:18.553 this as a separate whatever. 02:49:29.770 --> 02:49:33.437 I'll also say, if they taught those courses, 02:49:36.350 --> 02:49:37.400 like they're supposed 02:49:44.470 --> 02:49:47.553 to teach social studies, for example. 02:49:53.210 --> 02:49:54.043 And 02:49:58.000 --> 02:50:01.503 I appreciate what I find it. 02:50:04.490 --> 02:50:06.680 We have to go to this extent already. 02:50:10.400 --> 02:50:11.260 Well, again, 02:50:11.260 --> 02:50:14.253 your alternative is to reopen the social studies standards. 02:50:21.250 --> 02:50:23.500 Raising your hand or clapping to Ms. Hardy. 02:50:25.520 --> 02:50:29.450 I am clapping to Ms. Hardy because I agreed. 02:50:29.450 --> 02:50:33.790 And yesterday I think I tried to force Monica to note my 02:50:33.790 --> 02:50:38.790 begrudging support to this because our teachers are already 02:50:38.970 --> 02:50:39.803 doing this, 02:50:39.803 --> 02:50:43.640 but we have ultimately no choice because this is a statutory 02:50:43.640 --> 02:50:47.730 requirement, but it also sounds like we're telling teachers, 02:50:47.730 --> 02:50:49.400 Hey, you're not doing your job. 02:50:49.400 --> 02:50:52.360 So here's some more work so that you can check a box of 02:50:52.360 --> 02:50:54.863 compliance for what you're already doing. 02:50:58.430 --> 02:51:01.970 Okay, any other comments or questions I've got Ms. 02:51:01.970 --> 02:51:04.817 Little, I totally agree with Ms. 02:51:08.530 --> 02:51:09.363 Perez, 02:51:09.363 --> 02:51:12.210 and I think this is redundant and that we're asking our 02:51:12.210 --> 02:51:13.540 teachers do it. 02:51:13.540 --> 02:51:17.180 I plan to follow up with some of my curriculum directors and 02:51:17.180 --> 02:51:21.330 see how this is being presented to them to make sure that 02:51:21.330 --> 02:51:23.580 they are interpreting this as something that they're 02:51:23.580 --> 02:51:24.413 already, 02:51:25.920 --> 02:51:28.650 and don't take this as something additional that they have 02:51:28.650 --> 02:51:29.483 to add. 02:51:29.483 --> 02:51:31.973 And I would encourage my Board colleagues to do the same. 02:51:34.890 --> 02:51:36.630 Thank you. 02:51:36.630 --> 02:51:39.363 Alright, any other discussion on this matter. 02:51:44.220 --> 02:51:45.640 The vote. 02:51:45.640 --> 02:51:48.360 So I would ask all those in favor. 02:51:48.360 --> 02:51:50.770 Please do so by show it by showing your hand, 02:51:50.770 --> 02:51:51.670 raising your hand. 02:51:54.060 --> 02:51:54.930 Okay. 02:51:54.930 --> 02:51:58.063 Again, a very begrudging agreement. 02:51:59.700 --> 02:52:04.700 I see 12 in favor, 13 in favor, you may lower your hands. 02:52:08.180 --> 02:52:10.560 And all those opposed, please do. 02:52:10.560 --> 02:52:11.710 So by showing your hand 02:52:16.270 --> 02:52:17.420 in 02:52:17.420 --> 02:52:20.110 there is a majority in favor and the recommendation was 02:52:20.110 --> 02:52:22.920 adopted, and that will move up to number five, 02:52:22.920 --> 02:52:26.250 which is proposal proposed approval of innovative courses. 02:52:26.250 --> 02:52:28.260 And I'm back to Ms. Melton, Milan. 02:52:28.260 --> 02:52:29.093 I thank you. 02:52:30.400 --> 02:52:32.890 On behalf of the community on instruction, 02:52:32.890 --> 02:52:35.640 I knew that the State Board of Education approved for a 02:52:35.640 --> 02:52:37.360 period of five years, 02:52:37.360 --> 02:52:41.010 the following innovative courses that do not fall within any 02:52:41.010 --> 02:52:44.190 of the subject areas of the foundation or enrichment 02:52:44.190 --> 02:52:48.960 curriculum advancement via individual determination, 02:52:48.960 --> 02:52:53.960 avid level one, advanced via individual determination, 02:52:54.890 --> 02:52:59.890 avid level to advancement via individual determination, 02:53:00.090 --> 02:53:05.090 avid level three advancement via individual determination, 02:53:06.750 --> 02:53:11.750 avid for path college slash career one path 02:53:13.500 --> 02:53:18.500 college slash career two path college slash career three 02:53:20.250 --> 02:53:25.250 path college slash career career for peer assistance and 02:53:25.790 --> 02:53:30.790 leadership pal one and peer assistance and leadership pal to 02:53:32.630 --> 02:53:36.000 and approved for a period of two years and a new course 02:53:36.000 --> 02:53:37.853 titled civic discourse. 02:53:40.130 --> 02:53:41.460 All right, members, you've heard the motion. 02:53:41.460 --> 02:53:43.983 Is there any discussion on this motion? 02:53:47.320 --> 02:53:48.890 And then Ms. Hardy again, 02:53:48.890 --> 02:53:50.690 please do so by raising your zoom hand just helps. 02:53:50.690 --> 02:53:52.490 It helps me keep up with everything. 02:53:53.820 --> 02:53:56.830 Thank you, and then my mountain alone, 02:53:56.830 --> 02:53:58.360 just out of curiosity, who, who, 02:53:58.360 --> 02:54:02.850 what district is presenting the civil discourse course of 02:54:02.850 --> 02:54:03.683 Ms, Ramos? 02:54:03.683 --> 02:54:04.640 Can you, yes. 02:54:05.650 --> 02:54:10.650 Ma'am an application that comes from a district. 02:54:10.870 --> 02:54:15.520 It's an application that's coming from an entity called day 02:54:15.520 --> 02:54:16.473 of unity. 02:54:18.400 --> 02:54:22.080 They have piloted the course in a district here in the state 02:54:22.080 --> 02:54:24.980 of Texas, as well as outside of the state of Texas. 02:54:24.980 --> 02:54:27.470 Fantastic, do you know which district by chance? 02:54:27.470 --> 02:54:29.410 No, but I can look it up and send that to you. 02:54:29.410 --> 02:54:30.243 Thank you. 02:54:31.510 --> 02:54:33.260 Alright, Ms. Hardy. 02:54:38.060 --> 02:54:39.203 You're muted, Pat. 02:54:50.950 --> 02:54:52.200 Mr. Ramos. 02:54:52.200 --> 02:54:55.760 So avid is approved as a state innovative course, 02:54:55.760 --> 02:54:58.930 which allows students to earn elective credit for 02:54:58.930 --> 02:55:00.510 graduation. 02:55:00.510 --> 02:55:03.780 My understanding is it was once only available a local 02:55:03.780 --> 02:55:06.260 credibly, I think she's asking, what are you asking? 02:55:06.260 --> 02:55:07.270 Why is it on the agenda? 02:55:07.270 --> 02:55:10.973 Because that's been around for so long, it's a renewal. 02:55:12.570 --> 02:55:13.403 Okay. 02:55:13.403 --> 02:55:14.430 So they have to renew. 02:55:14.430 --> 02:55:18.370 So as you can see the there's a period of time for the 02:55:18.370 --> 02:55:21.390 approvals, we do bring these back to you periodically. 02:55:21.390 --> 02:55:24.290 And so it's just up for renewal, 02:55:24.290 --> 02:55:27.847 make some minor adjustments to the course to update it. 02:55:27.847 --> 02:55:30.193 And so they, they also submitted it for that, 02:55:34.710 --> 02:55:36.143 But after the Epic. 02:55:37.490 --> 02:55:38.323 Okay. 02:55:42.860 --> 02:55:45.693 That's a course that is offered. 02:55:46.560 --> 02:55:48.730 That is actually an application from a school district. 02:55:48.730 --> 02:55:52.810 And I can look up exactly which district that is, but it is, 02:55:52.810 --> 02:55:55.540 it's somewhat similar to avid in nature in that it's 02:55:55.540 --> 02:55:57.930 preparing students for college readiness, 02:55:57.930 --> 02:56:00.977 teaching them study skills and things of that. 02:56:08.160 --> 02:56:09.010 Mr. rally's hand raised. 02:56:09.010 --> 02:56:11.570 Let's see it lower, do you still have a question? 02:56:11.570 --> 02:56:15.670 Alright, so I see no other hands raised here. 02:56:15.670 --> 02:56:18.610 So you remember, as you have heard the motion, 02:56:18.610 --> 02:56:20.880 so we will go ahead and vote. 02:56:20.880 --> 02:56:22.770 I would ask all those in favor. 02:56:22.770 --> 02:56:25.193 Please do so by showing your hand. 02:56:36.570 --> 02:56:38.990 You may lower your hands 14 in favor. 02:56:38.990 --> 02:56:40.980 And any of those posts, please do. 02:56:40.980 --> 02:56:42.180 So by showing your hand, 02:56:44.080 --> 02:56:46.970 there is a majority in favor and the recommendation is 02:56:46.970 --> 02:56:48.620 adopted. 02:56:48.620 --> 02:56:51.040 And I think the last one for Ms. 02:56:51.040 --> 02:56:53.080 Melton mom's group is item number six, 02:56:53.080 --> 02:56:56.063 which is the update regarding orgo. 02:57:00.820 --> 02:57:02.300 I'll call them Ms. Melton alone. 02:57:02.300 --> 02:57:03.450 All right, thank you. 02:57:04.480 --> 02:57:06.940 As you remember, in our last meeting, 02:57:06.940 --> 02:57:11.940 we assessed them a fine of $113,494. 02:57:12.390 --> 02:57:17.200 And that was because they made changes in their books and 02:57:17.200 --> 02:57:20.600 did not bring it to us for approval. 02:57:20.600 --> 02:57:23.380 So we penalize them that amount of money. 02:57:23.380 --> 02:57:28.380 It was due June, June 4th, fourth, excuse me. 02:57:30.300 --> 02:57:33.050 And we received it may the fourth and I'm sorry, 02:57:33.050 --> 02:57:37.670 it was due June 1st, and we received it on may the fourth. 02:57:37.670 --> 02:57:41.070 It was deposited in the instructional materials fund and 02:57:41.070 --> 02:57:43.710 disperse the schools accordingly. 02:57:43.710 --> 02:57:44.930 And in, 02:57:44.930 --> 02:57:47.880 in our September meeting Vaughn and his staff are going to 02:57:47.880 --> 02:57:51.240 bring back some recommendations to us 02:57:53.180 --> 02:57:58.180 that we hope can be a plan in the future to deter our 02:57:58.310 --> 02:58:00.710 textbook companies and people that want to, 02:58:00.710 --> 02:58:02.040 to make changes without. 02:58:02.040 --> 02:58:04.290 Letting us approve them first, i, 02:58:04.290 --> 02:58:09.030 it will be something to deter them from doing that. 02:58:09.030 --> 02:58:12.270 We have several options and they're going to look at all the 02:58:12.270 --> 02:58:16.010 options and bring us back what they consider to be our best 02:58:16.010 --> 02:58:17.020 options. 02:58:17.020 --> 02:58:21.880 And we will bring that to you at the next meeting and decide 02:58:21.880 --> 02:58:26.880 on what we would like to do as we amend our process. 02:58:27.100 --> 02:58:29.623 Monica or Sally, do you have anything to add? 02:58:31.060 --> 02:58:33.210 No, ma'am you said it well. 02:58:33.210 --> 02:58:35.350 And just to note that members, that is, 02:58:35.350 --> 02:58:36.410 there's not a motion here. 02:58:36.410 --> 02:58:40.173 This is just an update from the committee, right? 02:58:41.200 --> 02:58:43.847 Okay, that's all we have in this Meltem alone. 02:58:43.847 --> 02:58:46.580 And I will now move to the committee on school finance, 02:58:46.580 --> 02:58:48.270 permanent school fund item number seven, 02:58:48.270 --> 02:58:51.430 proposed amendments, 19 TAC Chapter one to nine, budgeting, 02:58:51.430 --> 02:58:52.300 accounting, and auditing. 02:58:52.300 --> 02:58:55.240 So Chapter B, Texas education agency audit functions. 02:58:55.240 --> 02:58:57.610 What am I not 23 school district, 02:58:57.610 --> 02:58:59.500 independent audits and agreed upon procedures. 02:58:59.500 --> 02:59:02.410 And I'll call them just from meeting Mr. 02:59:02.410 --> 02:59:04.390 Chairman on behalf of the committee, 02:59:04.390 --> 02:59:06.820 I move that the State Board of Education approved for second 02:59:06.820 --> 02:59:10.990 reading and final adoption proposed amendment 19, 02:59:10.990 --> 02:59:13.750 the Chapter one Oh nine, budgeting, 02:59:13.750 --> 02:59:16.630 accounting and auditing Chapter B, 02:59:16.630 --> 02:59:21.380 Texas education agency audit functions one Oh 9.23 school 02:59:22.510 --> 02:59:26.770 district independent audits and agreed upon procedures and 02:59:26.770 --> 02:59:30.100 make an affirmative finding that immediate adoption of 19 02:59:30.100 --> 02:59:33.130 PAC Chapter one Oh nine, budgeting, 02:59:33.130 --> 02:59:36.220 accounting and auditing Subchapter B, 02:59:36.220 --> 02:59:40.387 Texas education agency audit functions 3.23 school 02:59:41.380 --> 02:59:42.700 districts, independent audits, 02:59:42.700 --> 02:59:46.120 and agreed upon procedures is necessary and shall have an 02:59:46.120 --> 02:59:49.593 effective date of August 31st of 20, 20. 02:59:57.820 --> 02:59:58.653 Sorry about that, members. 02:59:58.653 --> 03:00:00.440 You have heard the motion, I didn't know. 03:00:00.440 --> 03:00:03.010 This does require to vote. 03:00:03.010 --> 03:00:05.623 Is there any further discussion on this motion? 03:00:09.270 --> 03:00:10.800 All right, hearing none, 03:00:10.800 --> 03:00:13.960 we will do a vote so we can count the two thirds. 03:00:13.960 --> 03:00:16.670 I want to ask all those in favor. 03:00:16.670 --> 03:00:19.020 Please do so by showing a raising of your hand, 03:00:30.860 --> 03:00:35.040 Your hands, that's 14 and favor and all those opposed. 03:00:35.040 --> 03:00:36.693 Please show by raising your hand. 03:00:37.630 --> 03:00:41.150 There are two thirds in favor in the recommendation is 03:00:41.150 --> 03:00:44.950 adopted, and that will move us on to item number eight, 03:00:44.950 --> 03:00:46.830 which is a review of proposed revisions, 03:00:46.830 --> 03:00:51.830 19 TAC Chapter two 32 general certification provisions. 03:00:52.290 --> 03:00:53.970 And this is I'm sorry, 03:00:53.970 --> 03:00:56.647 that just make note that that was the last item for Mr. 03:00:56.647 --> 03:00:58.297 Mader, I was thinking of realism. 03:00:59.800 --> 03:01:03.530 Thank you, Mr. Hayner, so now we're onto that credit for Ms. 03:01:03.530 --> 03:01:04.890 Cargill, this is item number eight, 03:01:04.890 --> 03:01:06.080 review of proposed business, 03:01:06.080 --> 03:01:09.840 19 TAC Chapter two 32 general certification provisions. 03:01:09.840 --> 03:01:11.240 And I'll call on this cargo. 03:01:12.770 --> 03:01:17.710 So members on the committee on school initiatives minutes. 03:01:17.710 --> 03:01:19.660 This is on page one. 03:01:19.660 --> 03:01:23.920 So the committee recommends to that the state Board of 03:01:23.920 --> 03:01:28.700 education take no action on the proposed revisions to 19 TAC 03:01:28.700 --> 03:01:32.823 Chapter Chapter two 32 general certification provisions. 03:01:35.900 --> 03:01:37.130 Right members you've heard the motion. 03:01:37.130 --> 03:01:40.207 Is there any further discussion on this item hearing none. 03:01:42.500 --> 03:01:43.840 I'll ask all those in favor. 03:01:43.840 --> 03:01:46.307 Please do so by showing the raising of your hand. 03:01:54.270 --> 03:01:56.740 May lower your hands 14 and 15. 03:01:56.740 --> 03:01:59.950 All those opposed, please show by raising your hand. 03:01:59.950 --> 03:02:02.130 So none there is a majority of the favor and the 03:02:02.130 --> 03:02:04.340 recommendation is adopted. 03:02:04.340 --> 03:02:06.330 So just one quick announcement, Mr. 03:02:06.330 --> 03:02:07.290 Chair, 03:02:07.290 --> 03:02:09.640 that the charter school interviews are scheduled for the 03:02:09.640 --> 03:02:12.190 week of July 27th. 03:02:12.190 --> 03:02:16.280 I think the 27th through the 29th and staff is very busy 03:02:16.280 --> 03:02:19.220 reviewing the applications that have moved forward to the 03:02:19.220 --> 03:02:20.053 interviews. 03:02:20.053 --> 03:02:23.030 And it looks like that they will be helped by zoom. 03:02:23.030 --> 03:02:26.840 So Heather told me today she will be getting the interview 03:02:26.840 --> 03:02:30.933 schedule tests as soon as they have it pulled together. 03:02:32.760 --> 03:02:35.060 The clarification that will be that's depending on the 03:02:35.060 --> 03:02:37.220 Commissioner making his decisions, oh, 03:02:37.220 --> 03:02:39.873 I'm sorry that that's before that's okay, I'm thinking of. 03:02:39.873 --> 03:02:41.240 It's already, yeah. 03:02:41.240 --> 03:02:42.440 They've already told, 03:02:42.440 --> 03:02:44.640 told us we're going to go to the interview phase, 03:02:44.640 --> 03:02:48.250 but then yeah, before the Commissioner makes this decision. 03:02:48.250 --> 03:02:49.210 Right, right. 03:02:49.210 --> 03:02:50.043 Okay. 03:02:50.043 --> 03:02:51.430 Sorry about that. 03:02:51.430 --> 03:02:54.383 Are there any other reports from the committee chairs? 03:02:59.010 --> 03:03:03.230 I thing none of this does get us at the conclusion of our 03:03:03.230 --> 03:03:04.650 agenda. 03:03:04.650 --> 03:03:06.590 Are there any other reports of other state Board of 03:03:06.590 --> 03:03:09.450 education members regarding agenda items, 03:03:09.450 --> 03:03:11.600 any educational activities, 03:03:11.600 --> 03:03:14.600 concerns in individual districts or any other personal 03:03:14.600 --> 03:03:17.470 information that any member would like to share as we 03:03:17.470 --> 03:03:18.520 conclude the meeting? 03:03:21.730 --> 03:03:24.140 Well, we probably should say something to Mr. 03:03:24.140 --> 03:03:28.170 Mercer being that it's his 30th anniversary of his 35th 03:03:28.170 --> 03:03:29.023 birthday. 03:03:32.720 --> 03:03:35.790 Absolutely a happy birthday in case we forget it's it's 03:03:35.790 --> 03:03:36.990 written behind them right there. 03:03:36.990 --> 03:03:39.720 So I think kudos to your staff, Mr. 03:03:39.720 --> 03:03:40.553 Mercer, 03:03:40.553 --> 03:03:43.930 for getting that display behind you learned a new spelling 03:03:43.930 --> 03:03:45.573 word, I can spell Emmy DeCare. 03:03:47.900 --> 03:03:48.733 Medicare. 03:03:53.810 --> 03:03:58.170 I can quickly just quick things, I wanted to an attaboy. 03:03:58.170 --> 03:03:59.470 To chairman Rowley. 03:03:59.470 --> 03:04:02.040 I was reviewing things from last time from this time and 03:04:02.040 --> 03:04:04.750 Marty, I'll be very honored. 03:04:04.750 --> 03:04:07.850 I was watching the time that you kind of brought us back 03:04:07.850 --> 03:04:09.840 together, last session. 03:04:09.840 --> 03:04:12.260 He even says you now, so in September, 03:04:12.260 --> 03:04:13.550 I'll be presenting you the coveted, 03:04:13.550 --> 03:04:16.970 a Mercer or hurting cash award, Marty. 03:04:16.970 --> 03:04:19.760 I'm thinking of her in that one, Marissa, 03:04:19.760 --> 03:04:22.040 I want to talk about Rafa and I had a conversation going 03:04:22.040 --> 03:04:24.400 about our love for coffee, Cuban coffee. 03:04:24.400 --> 03:04:29.250 And, and how do I need to get off of coffee? 03:04:29.250 --> 03:04:34.250 And, but tell Rafa he was right a Monday with 262 testifiers 03:04:34.630 --> 03:04:37.620 Monday was a bad day to get up coffee, okay. 03:04:37.620 --> 03:04:38.663 Yeah, absolutely. 03:04:40.380 --> 03:04:43.830 Two more things to Mr. robins. 03:04:43.830 --> 03:04:45.040 Robinson, dr. 03:04:45.040 --> 03:04:47.090 Robinson, my staff gave you my covered it. 03:04:47.090 --> 03:04:50.230 I love coconut shrimp, but next time I'm in the Gulf coast. 03:04:50.230 --> 03:04:51.063 If you take me out, 03:04:51.063 --> 03:04:54.240 I need to know what does the coconut shrimp look like? 03:04:54.240 --> 03:04:55.780 Is that part of the evolution process? 03:04:55.780 --> 03:04:58.650 Maybe we should put in our biology, a coconut shrimp. 03:04:58.650 --> 03:05:00.570 What does that look like? 03:05:00.570 --> 03:05:02.970 She's got some good coconut shrimp. 03:05:02.970 --> 03:05:03.803 Well, 03:05:03.803 --> 03:05:06.420 what'd they look like in the Gulf of Mexico there a coconut 03:05:06.420 --> 03:05:10.400 tree Farrell's coming off. 03:05:10.400 --> 03:05:11.410 Okay. 03:05:11.410 --> 03:05:13.940 In about three weeks, I get a new promotion. 03:05:13.940 --> 03:05:15.950 I'm very proud of going to Colorado Springs. 03:05:15.950 --> 03:05:19.023 I'll be promoted to grandfather, so I'm very happy, 03:05:20.410 --> 03:05:23.690 very happy about it, and one last thing, seriously, 03:05:23.690 --> 03:05:27.890 y'all know how you know, just my prayer. 03:05:27.890 --> 03:05:29.890 I'm much, I love praying in a serious, 03:05:29.890 --> 03:05:33.320 I've been praying for years that God would restore my hair. 03:05:33.320 --> 03:05:37.350 The good news is that God answered my prayer to restore 03:05:37.350 --> 03:05:38.290 here. 03:05:38.290 --> 03:05:41.790 The bad news is, well, there you go. 03:05:41.790 --> 03:05:42.623 Okay. 03:05:44.700 --> 03:05:47.680 Thank y'all have a blessed summer points on that. 03:05:47.680 --> 03:05:49.080 Congrats for being a grandpa. 03:05:49.080 --> 03:05:53.270 I am against anyone getting off a coffee and I am also very 03:05:53.270 --> 03:05:56.040 thankful that we have our vice chair there to keep us in 03:05:56.040 --> 03:05:56.873 line, he does. 03:05:56.873 --> 03:05:58.340 It does a great job, Mr. 03:05:58.340 --> 03:05:59.443 Ms, Cargill. 03:06:01.810 --> 03:06:06.483 No, I was waving my whatever for Ken's comments. 03:06:08.620 --> 03:06:11.253 Do we have any other comments from any members? 03:06:13.870 --> 03:06:16.770 I am seeing none, so a couple of closing thoughts from me, 03:06:16.770 --> 03:06:17.603 number one, 03:06:17.603 --> 03:06:19.550 and I know I don't want to just sound repetitive, 03:06:19.550 --> 03:06:24.410 like I'm saying it just to stay at, but thanks to the staff. 03:06:24.410 --> 03:06:27.440 This is an incredible undertaking to get all these people 03:06:27.440 --> 03:06:31.960 together with the technology on top of what they had to do 03:06:31.960 --> 03:06:35.510 to prepare for our meeting in a normal setting, so again, 03:06:35.510 --> 03:06:38.270 I'm not just saying that to continually say that I have a 03:06:38.270 --> 03:06:40.800 great appreciation for all the staff, 03:06:40.800 --> 03:06:42.860 not just those who are on the call with us, 03:06:42.860 --> 03:06:44.930 but those behind the scenes as well. 03:06:44.930 --> 03:06:48.713 So I do want to stay in that and then last. 03:06:50.290 --> 03:06:51.620 Thank you for, for saying that. 03:06:51.620 --> 03:06:52.470 And I just, 03:06:52.470 --> 03:06:56.170 I want to make sure that Board members know Jessica Snyder 03:06:56.170 --> 03:06:58.480 and Steve Wilder who have been with you, 03:06:58.480 --> 03:07:03.480 but not on camera have been doing yeoman's work in trying to 03:07:03.710 --> 03:07:07.980 facilitate all of these committee meetings virtually 03:07:07.980 --> 03:07:11.190 it's challenging to do in person it's even more challenging 03:07:11.190 --> 03:07:13.150 to do by zoom. 03:07:13.150 --> 03:07:16.080 And I would say additionally challenging because they're 03:07:16.080 --> 03:07:19.730 trying to tackle three subject areas all at the same time. 03:07:19.730 --> 03:07:22.130 So I just want to make sure that you all know all of these 03:07:22.130 --> 03:07:26.330 documents, all of this information that you're getting, 03:07:26.330 --> 03:07:28.010 the two of them are, are, are, 03:07:28.010 --> 03:07:30.090 if it weren't for the two of them, 03:07:30.090 --> 03:07:32.230 none of that work would be happening. 03:07:32.230 --> 03:07:33.720 And so I want to make sure you know, 03:07:33.720 --> 03:07:36.030 where all of that work is coming from. 03:07:36.030 --> 03:07:38.310 Mr. chair, Mr. Rowley. 03:07:38.310 --> 03:07:39.143 Yeah. 03:07:39.143 --> 03:07:43.470 Monica enter typical fashion is deferring a deflecting, 03:07:43.470 --> 03:07:46.330 the praise to her staff, which is appropriate, 03:07:46.330 --> 03:07:48.660 but we all should note as well, that, 03:07:48.660 --> 03:07:53.660 that she is caring about two additional positions, 03:07:53.870 --> 03:07:58.660 at least until she has time to fill Debbie Radcliffe's 03:07:58.660 --> 03:08:00.350 position, she's been doing that. 03:08:00.350 --> 03:08:03.960 And she and Lenny, I want to affirm them. 03:08:03.960 --> 03:08:07.000 They've done a fabulous job in Monica, particularly she, 03:08:07.000 --> 03:08:09.510 she won't typically receive that praise for herself, 03:08:09.510 --> 03:08:13.580 but that she has been carrying a great deal of 03:08:13.580 --> 03:08:16.360 responsibility and has done it flawlessly as usual. 03:08:16.360 --> 03:08:21.310 So kudos to her absolutely great point. 03:08:21.310 --> 03:08:25.230 And then my last point is just to thank all 14 of my other 03:08:25.230 --> 03:08:28.440 members here for all the work they have done this week, 03:08:28.440 --> 03:08:30.760 specifically really almost say just about Monday and 03:08:30.760 --> 03:08:34.370 Tuesday, I mean, those were two really incredible days, 03:08:34.370 --> 03:08:39.370 16 hours of testimony from all aspects across spectrums of 03:08:41.270 --> 03:08:46.020 viewpoints and just, it was nothing but respect and, 03:08:46.020 --> 03:08:48.960 and from all sides from those testifying, 03:08:48.960 --> 03:08:50.850 from those listening, from the questions, 03:08:50.850 --> 03:08:53.640 I was very proud to be part of this, 03:08:53.640 --> 03:08:57.450 this Board and the testimony that we were part of on Monday. 03:08:57.450 --> 03:09:01.020 And then additionally, during our discussion on Tuesday, 03:09:01.020 --> 03:09:01.853 I think we have some, 03:09:01.853 --> 03:09:05.060 some really good discussions and I was proud to be a part of 03:09:05.060 --> 03:09:09.100 and looking forward to where this is going again. 03:09:09.100 --> 03:09:10.100 That was just discussing. 03:09:10.100 --> 03:09:11.710 We have first reading and second reading. 03:09:11.710 --> 03:09:15.470 So a lot more work to make these processes specifically for 03:09:15.470 --> 03:09:20.300 these three subjects that we're reviewing even better as we 03:09:20.300 --> 03:09:22.323 move towards that for tests. 03:09:28.070 --> 03:09:29.590 Thank you that Jerry Ellison, 03:09:29.590 --> 03:09:34.590 I just wanted to commend DEA staff for this week, 03:09:36.630 --> 03:09:37.970 that marathon meeting, 03:09:37.970 --> 03:09:42.970 we had to start start our first day ending at 1:00 AM and 03:09:44.820 --> 03:09:46.930 then being bright eyed and bushy tailed the next day. 03:09:46.930 --> 03:09:51.930 I just want to commend them on helping us through all of 03:09:52.850 --> 03:09:54.050 that, and. 03:09:54.050 --> 03:09:55.020 As we're wrapping up, 03:09:55.020 --> 03:09:57.810 I know that this will be the last time we need prior to the 03:09:57.810 --> 03:10:00.730 return of schools, and so on a more personal note, 03:10:00.730 --> 03:10:03.760 I just wanted to urge some of you, I mean, 03:10:03.760 --> 03:10:08.150 this is just my opinion and how I feel, but, you know, 03:10:08.150 --> 03:10:13.150 I'd like to urge some of you to maybe impress upon our 03:10:13.570 --> 03:10:16.410 Commissioner and those of you that have access to the 03:10:16.410 --> 03:10:19.333 Governor to maybe require that, 03:10:20.220 --> 03:10:24.130 that our schools at least meet the minimum requiring for 03:10:24.130 --> 03:10:27.223 phase openings under the CDC guidelines, 03:10:28.630 --> 03:10:33.580 before we can determine any in-person instruction for our 03:10:33.580 --> 03:10:35.150 schools, you know, 03:10:35.150 --> 03:10:38.930 that we're able to give districts at the local level, 03:10:38.930 --> 03:10:43.930 the flexibility that they need for reopening decisions 03:10:45.860 --> 03:10:49.320 on, you know, which would include input from educators, 03:10:49.320 --> 03:10:52.850 educated organizations, as importantly, 03:10:52.850 --> 03:10:57.850 as parents and local health officials, as you all know, 03:10:58.150 --> 03:11:01.750 we had to cancel our meeting in Austin because of the 03:11:01.750 --> 03:11:05.600 shelter in place requirements, it was originally, 03:11:05.600 --> 03:11:07.130 we were going to come in, 03:11:07.130 --> 03:11:09.490 but we're going to do all the days at tea. 03:11:09.490 --> 03:11:13.460 Then we went to two days a TA to all zoom and we all 03:11:13.460 --> 03:11:14.293 canceled them. 03:11:14.293 --> 03:11:17.740 So given that it's such a fluid situation with this, 03:11:17.740 --> 03:11:18.573 you know, 03:11:20.770 --> 03:11:25.270 I'd also like to at least request that maybe those of you 03:11:25.270 --> 03:11:26.850 that agree with, 03:11:26.850 --> 03:11:30.260 with what I'm suggesting that we impress upon our 03:11:30.260 --> 03:11:33.170 Commissioner and the Governor, that, 03:11:33.170 --> 03:11:38.170 that the idea that students and faculty be mandated to wear 03:11:41.350 --> 03:11:42.900 some type of face coverings, 03:11:42.900 --> 03:11:46.650 if they're going to come in and teach schools, 03:11:46.650 --> 03:11:48.987 you know, because the last thing that we need, 03:11:48.987 --> 03:11:50.570 and then you all heard, 03:11:50.570 --> 03:11:52.180 and I didn't get to finish my questioning of the 03:11:52.180 --> 03:11:55.660 Commissioner because of the limited time and all of us had 03:11:55.660 --> 03:11:59.330 questions, but you know, there's a lot of, 03:11:59.330 --> 03:12:01.080 a lot of people who have reached out, 03:12:01.080 --> 03:12:02.290 I'm sure to each of you, 03:12:02.290 --> 03:12:05.440 as they have to me about the concerns that they have, 03:12:05.440 --> 03:12:10.430 parents who feel uneasy in this in this 03:12:12.000 --> 03:12:13.260 time, I mean, 03:12:13.260 --> 03:12:15.890 you've seen it everywhere as businesses is closed. 03:12:15.890 --> 03:12:20.450 And so I plan on sending a letter to the Commissioner and to 03:12:20.450 --> 03:12:23.890 the Governor outlining some concerns that I have. 03:12:23.890 --> 03:12:28.020 And I would hope that if you guys are getting similar 03:12:28.020 --> 03:12:30.420 concerns that maybe you do the same thing. 03:12:30.420 --> 03:12:32.870 I think that if enough of us do it, 03:12:32.870 --> 03:12:36.457 there is a proper and safe way to ensure that the over 03:12:36.457 --> 03:12:40.470 700,000 employees in our schools and the over 5 million 03:12:40.470 --> 03:12:44.520 students that we represent can be brought back in some safe 03:12:44.520 --> 03:12:45.353 fashion. 03:12:47.120 --> 03:12:49.990 I don't want to get into we're discussing a specific item 03:12:50.980 --> 03:12:51.813 posting for more, 03:12:51.813 --> 03:12:55.170 just giving you all my thoughts as we're closing up. 03:12:55.170 --> 03:12:58.570 This is how I've been feeling this in a very stressful 03:12:58.570 --> 03:13:00.520 situation that we're dealing with Statewide. 03:13:00.520 --> 03:13:03.320 And I wanted to share my thoughts with you guys to impress 03:13:03.320 --> 03:13:05.640 upon you that if any of you, 03:13:05.640 --> 03:13:09.320 any of the 14 remaining members feel as I do that, 03:13:09.320 --> 03:13:11.303 please use your voice. 03:13:12.390 --> 03:13:15.360 Why is the reaching out to our Commissioner and to the 03:13:15.360 --> 03:13:16.980 Governor should get your thoughts. 03:13:16.980 --> 03:13:18.680 We were calling miss Melka Malone. 03:13:19.880 --> 03:13:20.713 Thank you, Mr. 03:13:20.713 --> 03:13:25.713 Chair, in addition to kudos to staff for all that they do. 03:13:25.850 --> 03:13:29.280 I think we need to give you a hand because you kept the 03:13:29.280 --> 03:13:34.280 meeting moving smoothly on Monday and didn't allow, I mean, 03:13:35.010 --> 03:13:38.460 you're the one who set the mood for the whole meeting. 03:13:38.460 --> 03:13:41.320 And so we appreciate you and we appreciate you keeping 03:13:41.320 --> 03:13:46.070 things running and moving and just helping us have a good 03:13:46.070 --> 03:13:47.100 meeting, thank you. 03:13:47.100 --> 03:13:48.990 Ms. Milton Malone, 03:13:48.990 --> 03:13:52.410 but I think it's credit to the team all the way around. 03:13:52.410 --> 03:13:56.240 So all right, members, I see no other hands raised, 03:13:56.240 --> 03:13:58.790 so y'all have a great holiday weekend coming up. 03:13:58.790 --> 03:14:01.510 We've got the fourth and I'm looking forward to everyone's 03:14:01.510 --> 03:14:04.560 spending some time with family and remembering that, 03:14:04.560 --> 03:14:08.923 and we will see each of you very soon meeting is adjourned.