WEBVTT
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Alright,
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so we will do that and I
will welcome everyone to the
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July 2nd, 2020 meeting
of the Texas state Board of
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education.
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And I am going to ask a member
of Barbara Cargill to bring us
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the invocation and
lead us in the pledges.
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Okay, so we'll start
with the invocation.
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And I'd like to start by
reading a couple of Bible verses
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from Philippians four, 12, and 13.
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And those verses say, I
know what it is to be in need.
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And I know what it is to have plenty.
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I have learned the secret of
being content in any and every
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situation, whether well fed or hungry,
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whether living in plenty or in want,
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I can do all this through
him who gives me strength.
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So just a couple of words about that.
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I think right now we're seeing
a lot of discontent and with
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the pandemic and all the
unrest in our country gets hard to
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process why some things
are happening, and we,
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I know I tend to wallow in
the why, you know, why this,
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why that that's, I know that's normal,
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but what I'm having to focus
on is just trusting that God
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never makes a mistake and he
knows what we're going through.
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And he knows the why.
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And sometimes he uses hard
times today to prepare us for
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what he wants us to do tomorrow.
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And so I have to keep that
in mind and that he will work
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everything out for good because
his work and his word stands
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and never changes, so the question is,
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how do we respond when we
feel like our hearts are breaking?
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I know listening to many of
our testifiers the other day,
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you know,
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my heart broke for listening
to many of their stories.
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And I just have to trust that
God will hold it together and
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that he will work personally
with those he loves and he
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loves everyone.
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So he's our source of
strength and our security.
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And he trains us for any
challenge and sustains us and can
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be trusted, so with
that, let's pray, dear Lord,
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we may never fully understand
how you're working through
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difficult experiences and situations,
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help us to process everything
that we're facing today and
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help us to process it
through the filter of your lab,
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not through our lens, which is finite,
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but through your
lens, which is infinite.
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And through lab, we
know that you love us,
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but sometimes we try to figure
things out on our own without
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looking to you for strength
and perseverance and through
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your perspective.
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So our mess with your strengths today,
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father guide us as we continue
to make decisions on behalf
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of the children of Texas.
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And we ask these things in.
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Your name, amen.
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So now they'll say the U S
pledge and we'll give staff a
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minute to put the
pledge up on the screen,
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but you may stand or stay seated.
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I pledge allegiance to the flag of the
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United States of America.
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Are we on?
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Yes, your honor.
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Oh, I'm sorry.
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I thought I lost you, all right.
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Let's let's start over, sorry.
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I pledge allegiance to the flag of the
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United States of America
and to the Republic for which it
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stands one nation indivisible
with Liberty and justice for
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all.
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Now we'll say the
pledge to the Texas flag.
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Okay.
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Honor, the Texas flag.
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I pledge allegiance to the Texas
one state under God one and
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indivisible.
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Thank you.
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Thank you, Ms. Cargill.
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Very, very wise and timely words there.
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Next we'll move to roll, call roll call.
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So we'll staff, please call the roll.
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Mr, Cortez here.
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That is the asks here.
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Mr, Allen.
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Mr. Mercer, Mrs. Bahorich here.
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Dr, Robinson here.
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Mrs, Cargill here.
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Dr. Ellis, Mr.
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Maynard
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here, Mrs.
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Little Ms.
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Davis, Mrs.
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Milton Malone here.
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And Mr. Rowley, here
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Ms. Martinez.
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Quorum is present.
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The first business to be
considered is approval of minutes
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of the State Board of
Education meeting from
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April 17th, 2020.
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I would ask members if
there are any corrections to the
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minutes hearing none,
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there are no corrections
in the minutes approved.
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Thank you.
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We'll now move into public testimony.
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Ms. Martinez, do we
have some testifiers.
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Yes.
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So I did send you by email
the list of testifiers for this
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morning.
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If you'll give me one moment,
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we will let them into the
meeting while she is doing that
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I'll remind members,
and also those that are,
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are viewing that during
public testimony, these are,
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will be on items that
are not on our agenda.
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So we are prohibited from
discussing with a testifier any of
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the items that are being discussed,
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other than asking clarification
questions or directing them
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to appropriate staff.
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So I do want the testifiers
to be aware that we will not,
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we're not able to engage in a
discussion with them because
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this is not items that are
posted on our agenda.
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Okay.
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So the first testifier is Natanya Patel.
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You may unmute.
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Again, when you're ready,
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you will have three minutes
and will receive notification at
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the 30 seconnd mark
to wrap up your remarks.
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Alright, thank you.
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Good morning, Board members.
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My name is and I'm a proud
graduate of the Texas public
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school system.
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I would like to begin by
thanking each one of you for all
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the hard work that you guys
have done within the past couple
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of years.
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I know the important work that
you guys have been doing by
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implementing the Mexican
American history and the African
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American history elective
courses in Texas schools.
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And that is a step
in the right direction,
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even though the creation of
this courses is important and
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they're vital steps, I think
that we must do more.
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I urge you to further your
efforts and implement an
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anti-racist curriculum for
American history courses.
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The recent tragedies effect
afflicting the black community
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have made it painfully obvious
that our country continues to
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oppress its black citizens
and perpetuate racial disparities
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by disregarding large
portions of black history,
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we have failed to properly
equip our youth with the
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knowledge and resources
needed to combine individual
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insistence,
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cinematic racism in our
society in order for a country to
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improve and to be a
safe, equitable place,
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equitable place for all citizens,
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we have to acknowledge our
deeply anti-black past as well as
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the repression that continues today.
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And I believe that this
begins in the classroom,
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our petition was sent
to each one of you,
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and we believe that it is
feasible because we adjusted
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existing takes guidelines
can include the minimum
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requirements of what
any informed citizen in the
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United States, you know,
about our nation's history.
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Let's remember that black
history is American history.
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We can not continue to
push a politicized distortion of
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history of the history of slavery
and civil rights movement.
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When scholars and educators
proposed revisions to this teak
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standards in 2010,
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their suggestions were
disregarded due to the personal
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religious and political
beliefs of SPLU members.
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Now's the time for TEA for
you to correct history and to fix
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the past wrongs that
have been committed.
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The Texas freedom network
released a report in 2018,
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which reviewed the TEKS
social studies standards and
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concluded that Texas students
leave their classrooms without
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a sound understanding of
the origins of important issues
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that sadly continue
to divide her division.
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This makes resolving serious problems,
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particularly on matters
regarding regarding race and
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discrimination, more difficult today.
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To me,
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this was deeply troubling and
almost heartbreaking because
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when I see that in
my own state going on,
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it makes it feel as if
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with a $46.5 billion 45,
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$46.5 billion in the permanent
school fund of Texas.
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There shouldn't be any excuse
that people are willing to do
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the work in implementing
an anti-racist curriculum.
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Curriculum timelines have
been pushed forward before,
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and I believe that they must
be pushed forward once again.
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The next time the curriculum
will be reviewed is in 2023.
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However,
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it will be implemented at
an even later date that it's
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important that we,
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that we go ahead and review
this immediately and add it to
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the agenda.
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Thank you.
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Next is Claudia
Devante, Ventura.
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Hello, I'm steamed chairman
Ellis and Board members.
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Good morning, I am
Claudia Debona Ventura,
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and I'm also a proud graduate
of the Texas public school
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system.
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My teammates and I have
started a petition regarding the
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implementation of an
anti-racist teak standards that
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currently has over 11,000 signatures.
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Despite the amount of signatures,
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we have only received five
responses from SPLU members and
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only two members have
taken the time to speak with us.
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The current TEAC standards
ignore our nation's racist
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history and the present day
consequences of our past racial
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violence, slavery, and Jim Crow.
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For example,
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Texas students are not
taught about the full depth of the
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civil rights movement
in the United States,
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which was as diverse
and its leadership goals and
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philosophies as the American revolution,
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black female activists,
such as Septima Clark,
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who courageously fought
for the infringement and
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franchisement of black citizens
are erased by history books
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that choose to instead
highlight Confederate generals,
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military prowess, for example,
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portraying Confederate leaders,
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such as general Thomas
Stonewall Jackson as effective
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political leaders downplays
their trees into the nation.
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And the role in upholding a
system of white supremacy.
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Additionally,
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the TEKS make language
leaves too much room for individual
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teachers to teach to
the personal biases.
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As an example, TEKS high school,
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social studies standard nine.
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He asked teachers to compare
and contrast the approach taken
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by the black Panthers
with the nonviolent approach
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of Martin Luther King Jr.
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allowing teachers the freedom
to emphasize one approach
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as more socially
acceptable or effective,
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as opposed to two coinciding
and complimentary efforts at
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securing civil rights
for black Americans.
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If we place high
expectations on our standards,
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we must meet these standards ourselves.
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It is not enough to be racist.
00:12:46.780 --> 00:12:51.380
We have to actively
be anti-racist groups,
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such as the daughters of the
Confederacy have continuously
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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
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system, we must be anti-racist.
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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
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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,
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I ask that you add this issue
to your September agenda and
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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.
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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.