The purpose of the Permanent School Fund is to provide money for Texas public schools from sources other than tax revenue. The fund pays for textbooks for Texas schoolchildren and guarantees bonds issued by local school districts.
The Permanent School Fund is managed by the State Board of Education.
The Dallas Morning News reported in September 2009 that a split had formed in the SBOE over the firing of investment consultant R.V. Kuhns & Associates for rival NEPC. The move was made despite higher staff ratings for R.V. Kuhns and lower costs.