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Group Title: Research report
Title: The Florida index of taxpaying ability and the required county report
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Permanent Link: http://ufdc.ufl.edu/UF00082787/00006
 Material Information
Title: The Florida index of taxpaying ability and the required county report
Series Title: Research report
Physical Description: v. : ; 28 cm.
Language: English
Creator: Florida -- State Dept. of Education
Publisher: State Dept. of Education,
State Dept. of Education
Place of Publication: Tallahassee
Publication Date: 1967
Frequency: annual
regular
 Subjects
Subject: Education -- Finance -- Periodicals -- Florida   ( lcsh )
Genre: government publication (state, provincial, terriorial, dependent)   ( marcgt )
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Issuing Body: Issued by the Division of Research.
General Note: Description based on 1962; title from cover.
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Bibliographic ID: UF00082787
Volume ID: VID00006
Source Institution: University of Florida
Holding Location: University of Florida
Rights Management: All rights reserved by the source institution and holding location.
Resource Identifier: oclc - 24036207

Table of Contents
    Front Cover
        Front Cover 1
        Front Cover 2
    Main
        Page 1
        Page 2
        Page 3
        Page 4
        Page 5
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        Page 8
        Page 9
        Page 10
        Page 11
        Page 12
        Page 13
        Page 14
        Page 15
        Page 16
        Page 17
        Page 18
        Page 19
        Page 20
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        Page 26
Full Text



Research


tivIi slo


Report


S.* rch


REPORT 56


The Florida


Index


of Taxpaying
Ability and the


Required


County


Effort


37 ', 741


November
1967


STATE DEPARTMENT OF EDUCATION
TALLAHASSEE FLORIDA
FLOYD T. CHRISTIAN STATE SUPERINTENDENT




































Research Report 56 is a revision of Research
Report 47 prepared by the Division of Research
of the Florida State Department of Education. (600)












THE FLORIDA INDEX OF TAXPAYING ABILITY

AND THE REQUIRED COUNTY EFFORT

Providing the money for Florida's Minimum Foundation Program is a

joint responsibility of the state and the counties. The amount of money

that all of the counties together are required to provide is an amount

equal to twenty-five percent of the total calculated cost of the Minimum

Foundation Program for the preceding year for all of the counties for

kindergarten and grades 1-12. This is referred to as the "county mini-

mum financial effort", "required local effort", or "required county con-

tribution." The total calculated cost of the Minimum Foundation Program

includes instructional salaries, transportation, current expense and

recalculation funds, excluding adjustments for prior years. Capital outlay

and debt service funds, provided by Motor Vehicle License funds earmarked by

Constitutional Amendment, are also excluded.

The total amount required for all of the counties together for grades

1-12 cannot increase in any one year more than five percent over the total

amount required for grades 1-12 in the previous year. This increase limitation

applies to the total for all counties collectively, any particular county's

required effort may increase more than five percent if its index goes up a

sufficient amount. The purpose of this limitation is to protect counties

against a sudden increase in required local effort and give them time to

make adjustments in local millage. District millage, up to ten mills, is

voted on by the electors in a county and is set for two years at a time the

two year period not corresponding with the normal biennium for which appro-

priations are made.







The amount of money provided by the counties collectively as their contri-

bution to the cost of the Minimum Foundation Program is based on the total cost

of the program for the preceding year. The county minimum financial effort is

deducted from the total cost of the Minimum Foundation Program; the remainder

is the state's share.

As the total cost of the Minimum Foundation Program increases, the minimum

local effort required from the counties increases (but cannot exceed a five

percent annual increase), Increases in the value of an instruction unit, for

example, increase the minimum local effort.

The dollar amount each county is required to provide is computed by

multiplying that county's percent of the financial ability of the state, as

determined by an Index of Taxpaying Ability, times the dollar amount that the

counties are required to provide collectively. The requirement for each county

depends on two things: (1) that county's Index of Taxpaying Ability, and (2)

the total calculated cost of the Minimum Foundation Program for all counties

for the preceding year.

By law, all property should be assessed at full value. All but four

counties were certified as meeting this requirement in 1966. Presumably these

four counties will have reached full value assessments in 1967. Still, property

assessment is a complex activity and a considerable amount of variation is

believed to exist still even though the legal requirement is being satisfied.

This condition makes necessary the continued use of some standard other than

assessed valuation in determining the relative (comparative) taxpaying ability

of the several counties. The Index of Taxpaying Ability was developed to

provide such a standard. This index does not depend on property assessments to

measure ability to pay taxes. It uses other "factors" or measurements as

indicators of financial ability.


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The Index of Taxpaying Ability attempts to estimate the relative taxpaying

ability of each county from economic factors other than assessed valuation. In

this way, it is essentially a substitute for state-wide equalized assessments.

At such time as there can be reasonable assurance that property is assessed

equally on a continuing basis throughout the state, it will be desirable to

eliminate the use of the index. It can be replaced by using each county's

percent of non-exempt property as a sole measure of ability to support schools.

Until such time as this equalization of assessments is assured, the Index

of Taxpaying Ability probably will remain in effect.

The factors used in the Florida Index of Taxpaying Ability are given

below. All are factors for which objective figures are available from

agencies other than the State Department and County School Boards. Each

factor in one way or another indicates something of the ability of the people

of a county to pay taxes to support their schools. The economic factors now

used are:

1. Sales tax collections as reported by the Comptroller,

2. Number of gainfully employed workers excluding government and
farm workers, as reported by the Industrial Commission.

3. Value of farm products taken from the latest official United
States Census of Agriculture.

4. Valuation of railroad and telegraph property as reported by
the Cpmptroller.

5. Automobile license tag sales (passenger cars) as reported by
the Motor Vehicle Commission.

Sales tax collections, gainfully employed workers, valuation of railroad

and telegraph property, and automobile tag sales are updated from year-to-year.

The value of farm products is taken from the United States Census of Agricul-

ture, and is available at five year periods rather than atyearly intervals.


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Each county's percentage of the state total in each of the above factors

is determined by dividing the state total into each county's total. For example,

the total sales tax collected in Florida is divided into the sales tax collected

in each county; the number of gainfully employed workers in the state is divided

into the number of gainfully employed workers in each county. This is done for

each of the five factors in the Index for each county.

Each county's percent of the state total of each of the five economic

factors is then multiplied by a "weight" assigned to each factor by law

(Section 236.071(2), Florida Statutes). The sum of the products is that county's

Index of Taxpaying Ability. The sum of the weights, of course, adds to 1.0000.

This can be stated another way. The Index of Taxpaying Ability of each

county is expressed in terms of that county's percent of the total taxpaying

ability of all the counties combined. This is determined as follows: Find the

sum of the county's percent of sales tax returns multiplied by .3654 plus its

percent of gainfully employed workers (less government and farm workers) multi-

plied by .2442 plus its percent of the value of farm products multiplied by .0586

plus its percent of the valuation of railroad and telegraph property multiplied

by .0461 plus its percent of automobile tag sales multiplied by .2857.

The indices of taxpaying ability of all the counties add up to 100 percent.

To find the dollar amount that each county is required to provide, as its

share of the cost of the Minimum Foundation Program for grades 1-12, it is

necessary to multiply that county's Index of Taxpaying Ability by the dollar

amount that the counties are required to provide collectively.

Counties having kindergartens under the Minimum Foundation Program are

required to increase their local minimum effort by five percent. During the

first six years of operation a county is not required to contribute more than

$3,000 per kindergarten unit authorized. An additional requirement is also










made for counties having junior colleges or participating in the support of

a junior college under the Minimum Foundation Program.

To raise the required "county minimum effort" for participation in the

Minimum Foundation Program, some counties find it necessary to levy a higher

village than other counties. Generally those counties with higher property

assessment practices are required to levy a lower millage rate. Conversely,

lower property assessments will generally result in a higher millage levy.

As property assessment become more uniform among the counties, the differences

in required millage should become less and less.

The actual millage levied in every county is higher than the millage

necessary to meet the participation requirements of the Minimum Foundation

Program. This is necessary because many expenses are not covered by the

minimum program. No county could operate on the Minimum Foundation Program

funds alone. Local property taxes must be provided to meet these expenses

for such requirements as additional teachers, salary supplements, operation

of the county office, additional transportation costs, and instructional

materials.

Section 236.071(2), Florida Statutes, is the legal authority for the Index

of Taxpaying Ability. This section states:

The legislature finds and declares that substantially equal
public educational advantages should obtain in all counties of the
state; that such.equality does not now exist. In order to provide
in every county, from combined state and county sources, substan-
tially equivalent educational advantages, the state minimum founda-
tion program funds shall be apportioned and distributed on the basis
of educational needs and relative taxpaying ability as prescribed
by law, in the ascertainment of which, the state board shall determine:
(a) The relative ability of the several counties to support the cost
of the minimum foundation program by ad valorem taxation, such ability
to be determined by an index of relative taxpaying ability established
by law; (b) The cost of the minimum foundation program as determined
in Section 236.07. In determining said index of the relative tax-
paying ability of the several counties of Florida the state


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superintendent shall find each county's percent of the state total of each
of the following factors: Sales tax returns, gainfully employed workers
excluding government and farm workers, value of farm products, assessed
value of railroad and telegraph, automobile tag registration. The index
of taxpaying ability for each county expressed in terms of its per cent of
the state total taxpaying ability shall be determined as follows: Find
the sum of the county's per cent of sales tax returns multiplied by .3654
plus its per cent of gainfully employed workers less government and farm
workers multiplied by .2442 plus its per cent of the value of farm products
multiplied by .0586 plus its per cent of the railroad and telegraph assess-
ments multiplied by .0461 plus its per cent of automobile tag registrations
multiplied by .2857; furthermore, if any county fails for any reason to
make the minimum financial effort required for the minimum foundation
program, the state's portion of the foundation program allocation to that
county shall be decreased proportionately. The state superintendent shall
obtain data for the factors included in the index from the most reliable
published source as determined by the state board of education.

Section 236,07(8), Florida Statutes, provides the legal authority and pre-

scribes the procedure to be followed in determining the minimum financial effort

for kindergarten and grades 1-12 in each fiscal year required of the several

counties. This section states:

The amount which each county shall provide toward the cost of the
minimum foundation program is that county's per cent of the financial
ability of the state as determined by an index of relative taxpaying
ability prescribed by law in Section 236.071, multiplied by twenty-five
percent of the total calculated cost of the minimum foundation program
for kindergarten and grades one through twelve for all counties for the
preceding fiscal year for instructional salaries, transportation, and
current expense other than instructional salaries and transportation,
and recalculation funds provided in Sections 236.03 and 236.031, but
exclusive of adjustments for prior years as provided in Section 236.07
(9). Provided, however, that the combined required effort of all counties
for grades one through twelve shall not increase more than five
percent in any year. The financial effort of any county toward meeting
the cost of the minimum foundation program for that county shall consist
of the proceeds of either county or district or of both the county and
district current school taxes; provided, that when a county is levying
the maximum mills permitted by law, race track, federal impact, and
national forest funds may be included. If a county requests that
instruction units for kindergarten be in its minimum foundation program
and is entitled to such units under the laws of the state, the financial
effort required of that county as prescribed herein shall be increased
by five percent; provided, however, that during each of the first six
years in which kindergarten units are approved in the minimum foundation
program the increased local effort shall not exceed three thousand dollars
for each kindergarten unit approved in the respective counties.

Section 230.0117(7), Florida Statutes, provides the legal authority and

prescribes the procedure to be followed in determining the minimum financial


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effort for junior colleges in each fiscal year required of the counties

participating in this program. This section states:

The amount which each county approved by the state board to
operate a junior college or to participate in the support of a
junior college shall provide toward the cost of the junior college
minimum foundation program is that county's percent of the financial
ability of the state as determined by an index of relative taxpaying
ability prescribed by law multiplied by five percent of ninety-five
percent of the calculated yield of six mills of taxes levied on the
nonexempt assessed valuation of the state subject to the provisions
cf Section 236.071; provided that the required amount shall be subject
to the limitation in Section 230.0111.

Section 230.0111(2), Florida Statutes, states:

Each county board operating a junior college and each county board
participating in the operation of a junior college, under provision
of law, shall make a financial effort to support the junior college
which is at least equal to the amount required in Section 230.0117(7)...
Any county board which fails to make the financial effort required
hereunder to support the junior college shall during such default be
ineligible to receive any state funds under the minimum foundation
program.

While the weights of the factors remain constant from year-to-year, unless

changed by law, the relative proportions of each factor in each county does

change from county-to-county. Thus, each county's Index of Taxpaying

Ability (relative percentage of the State's taxpaying ability) does undergo

a change from one year to the next. Normally, a county growing at a greater

rate than the state as a whole will have an increase in its index whereas a

county growing at a lesser rate than the state average will show a decrease

in its index figure. It should be remembered that this is a relative index.

A county can be growing and still show a decrease in its index if it is

growing at a lesser rate than other counties--at a lesser rate than the state

as a whole.

APPLICATION OF INDEX

An example of how the Index of Taxpaying Ability works in a specific

county will serve to make the computation and application of the Index
clear. Manatee County is used for purposes of illustration.

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The first step is to determine what percent of the state total of each

of the five factors in the Index is found in Manatee County. This is accom-

plished by dividing the state total for each factor into the Manatee County

total for each factor.

1. Sales tax returns
The total sales tax collected from all the counties for the fiscal
year ending June 30, 1966, as taken from the Report of the Comp-
troller, amounted to $259,655,061.46. Of this total state return
Manatee County reported $2,752,745.54. Dividing the state total
into the amount reported from Manatee County gives this county's
share of the state total as 1.0602 percent,

2. Gainfully employed workers
The Industrial Commission reported that in 1965, there were
1,953,011 gainfully employed workers other than government
workers and farm workers in Florida. Manatee County had 16,188
such workers. This is .9713 percent of the state total.

3. Value of farm products
From the 1964 United States Census of Agriculture, the value of
all farm products in the state amounted to $953,513,801. Of this
state total, $14,208,593 or 1.4901 percent was from Manatee County.

4. Valuation of railroad and telegraph property
The total value of railroad and telegraph property in Florida in
1966, taken from the Report of County Finances, State Comptroller,
was $290,533,059. Of this total $2,506,403 or .8627 percent was
in Manatee County.

5. Automobile tag sales
The total state revenue from the sale of automobile license tags
(passenger automobiles) for 1965, according to the report of the
Motor Vehicle Commission, was $62,075,005.22. Manatee Cqunty's
share was $923,647.25 or 1.4880 percent of the state total.

Since it must be recognized that all of the above factors are not of equal

importance as indicators of the ability of a county to support its schools, the

next step is to apply "weights" to each factor. These weights were derived

through detailed mathematical processes and now are prescribed by law (Section

236.071(2), Florida Statutes).









MANATEE COUNTY

Factor Percent of Times Prescribed Equals Weighted
State Total Weight Percent

Sales Tax Returns 1.0602 x .3654 = .3874

Gainfully Employed
Workers .9713 x .2442 .2372

Value of Farm
Products 1.4901 x .0586 = .0873

Valuation of R.R, and
Telegraph Property .8627 x .0461 .0398

Auto Tag Sales 1.4880 x .2857 = .4251

Total 1.0000 1.1768

Manatee County's Index of Taxpaying Ability thus is found to be 1.1768.

This means that according to the factors used in the Index as measures of tax-

paying ability, Manatee County has 1.1768 percent of the state's ability to

support the Minimum Foundation Program.

The method to be followed in computing the amount to be provided by all

of the counties together is given in Section 236.07(8) which prescribes that

the required effort of all of the counties collectively be twenty-five percent

of the total calculated cost of the Minimum Foundation Program during the pre-

ceding year, however, the required effort for grades 1-12 cannot increase more

than five percent in any one year. This five percent limitation protects the

counties against sudden increases which could upset their local tax programs.

For the year of this example, 1967-68, the total calculated cost of the

Minimum Foundation Program for the preceding year 1966-67 was $267,228,472.

The amount that the counties collectively are required to provide for grades

1-12 is found by multiplying the total calculated cost for the preceding year

by twenty-five percent. (267,228,472 x .25 = 66,807,118) The provision that

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the required effort for grades 1-12 cannot increase more than five percent

places a maximum on the county effort required. The required effort for grades

1-12 in 1966-67 was $64,456,464 and increasing this by five percent would give

$67,679,287. (64,456,464 x 1.05 67,679,287) Since the required effort for

1967-68 as determined above ($66,807,118) does not exceed the five percent

increase allowed by this provision, the limitation has no effect for the 1967-68

year. Therefore, $66,807,118 is the total amount which must be provided by all

of the counties together for 1967-68 toward meeting the cost of the Minimum

Foundation Program for grades 1-12.

Manatee County's relative taxpaying ability to pay has been determined

to be 1.1768 percent of the ability of all of the counties together. To find

the amount which Manatee County must provide, it is necessary only to multiply

Manatee County's Index of Taxpaying Ability times the total amount that the

counties collectively are required to provide (66,807,118 x .011768 786,186).

Manatee County's share of the total cost of the Minimum Foundation Program thus

is found to be $786,186.

BUT

Manatee County has a kindergarten program for which it receives

instruction units under the Minimum Foundation Program. Therefore, the share

provided by this county must be increased by five percent (786,186 x .05 = 39,309).

This means that $39,309 must be added to Manatee County's share in the cost

of the program (786,186 + 39,309 825,495). Manatee County's minimum local

effort for kindergarten and grades 1-12 is $825,495.

AND

Manatee County participates in a junior college program for which

instruction units are earned under the Minimum Foundation Program. The method


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to be followed in computing the additional amount to be provided for participa-

tion in a junior college program is given in Section 230.0117(7). For the

year used in this example, the state total non-exempt property assessed

valuation was $25,628,824,040. The amount Manatee County is required to

provide to participate in the junior college program is found by multiplying

Manatee County's Index of Taxpaying Ability by five percent of ninety-five

percent of six mills by the total non-exempt assessed valuation of the state.

(,011768 x .05 x .95 x .006 x 25,628,824,040 85,956) This means that

$85,956 must be added to Manatee County's share in the cost of the program

(825,495 + 85,956 = 911,451). Manatee County's total minimum local effort

is $911,451 which amount this county must provide from local county sources

in order to participate fully in the Minimum Foundation Program.

To provide the required $911,451 from local ad valorem taxes it is

necessary for Manatee County to make a tax levy of approximately 3.16 mills

on non-exempt property in the county. One point should be made here. The

actual tax levies by the counties are levied on the 1967 Tax Roll and the

estimated millage necessary is estimated from the 1966 Tax Roll. In a

county in which the tax roll is increasing rapidly, the actual village

required may be less when determined from the 1967 Tax Roll.

None of the above should be taken to mean that Manatee County is limited

to a 3.16 mill levy. This is merely the minimum required to qualify under

the Minimum Foundation Program law. Actually, Manatee County levies about

twelve mills in order to provide a better educational opportunity for its

boys and girls than the bare minimum. All counties have a tax rate in excess

of the minimum. This is necessary because many requirements are not covered

in the Minimum Foundation Program.


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If Manatee County did not have a kindergarten program or a junior college

program, then only its contribution to the basis program would be required.

The same procedure is followed in computing and applying the Index of

Taxpaying Ability for each of the counties. The basic requirement is increased

for a kindergarten program and for a junior college program earning units under

the Minimum Foundation Program. In a few instances, counties have had both

junior college and kindergarten programs, whereby their minimum local effort

was increased for each program.


PROPOSED CHANGE IN INDEX

The weights now used in computing the index were last revised in 1953,

some fourteen years ago using a statistical technique developed by Dr. R. L. Johns

and the late Dr. Herbert A. Meyer. Dr. Johns has indicated that:

It is desirable that the weights of these factors (used in index)
be recomputed at least every ten years because the various components
of the economy of a state may change in their proportionate relation-
ship to each other over a ten year period.

At the request of the Florida Association of County Superintendents in 1966,

Dr. Johns undertook a re-study of the factors in the index. The statistical

computations were made by Mrs, Jennie L. Grossman, Research Associate, University

of Florida Computing Center. This study resulted in a recommendation that the

weights established in the 1953 law be revised to reflect changes in the economy

of the state, In his report to the Association of County Superintendents

Dr. Johns stated:

The weights of the factors in both the 1967 index and the 1953
index were determined by the methods of calculus. Therefore, the
weights for the 1953 index were the most valid that could be computed
from the data available and the assumptions used at that time. The
same can be said for the 1967 index. Therefore, the 1967 index is
more valid for the present than the 1953 index.

It is recommended that the 1967 revision of the index of taxpaying
ability be substituted for the 1953 index. The longer the delay in
revising the index, the greater the financial.inconvenience to certain
counties when the change is made. Furthermore, the longer the delay

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in revising the index, the longer the continuance of the inequities in
the present index. If and when the state establishes an agency which
will determine accurately the 100 percent valuation of property in
each county, those data could be used for determining taxpaying ability
and the use of the index could be discontinued.

It is interesting to note that the weights of the economic factors
computed for the 1967 revision of the index vary widely from the weights
in the 1953 index... It will be noted, however, that there is a remark-
able similarity in the computed results of these two indexes although
the weights vary widely. This is characteristic of multiple regression
equations. There is an infinite number of different combinations of
the weights of the economic factors that will produce approximately
the same estimate of the relative taxpaying ability of the several
counties of the state. The method of "least squares" (which is an
application of the calculus) was used in computing the weights of the
factors included in the 1967 revision of the index. When this method
is programmed into the computer, it will determine the best possible
combination of weights to predict the taxpaying ability of the counties
from the data used.

The revised weights were introduced in the 1967 session of the Legislature

in House Bill 988 by Representative Ken Smith and Senate Bill 602 by Senators

Stone, Haverfield, Slade, Hollahan, Fincher, Gong, Spencer, Poston, and

Weissenborn as co-introducers. Both bills died on the calendar without passage.

The revision in weights also was included as a part of at least three other

bills including House Bill 1235 by the Public School Education Committee. The

provision was either amended out or the bills did not pass.

A comparison of weights under current law and under the proposed revisions

is given below.
Weights
Current Recommended
Law Revision

Sales tax returns .3654 .2541
Gainfully employed workers .2442 .1832
Value of farm products .0586 .0530
Value of Railroad and Telegraph
Property .0461 .0319
Auto Tag Sales .2857 .4778

1.0000 1.0000


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SOME QUESTIONS AND ANSWERS ON THE FLORIDA INDEX


OF TAXPAYING ABILITY AND ITS APPLICATION


1. If the non-exempt property valuation in one county doubled, could this
have any effect on the minimum local effort required of a county in
another section of the state?

Answer: The non-exempt valuation in one county does not effect the
county requirement in another county for the kindergarten
through twelve program. If the other county has a junior
college, the requirement for this might be increased slightly.

2. If a county decided to cut school expenses by reducing services and
delaying building repairs, would this action reduce the amount of money
required to meet that county's minimum local effort under the Minimum
Foundation Program?

Answer: No. The required local effort is based on its share of a per-
centage of the total state Minimum Foundation Program cost.

3. If allocations for teachers' salaries are increased under the Minimum
Foundation Program Law, what effect does this action have on the county
required minimum effort?

Answer: Since the required minimum effort is based on the cost of the
program, any increase in unit value would be paid in part by
the counties after a lapse of one year.

4. If the Index of Taxpaying Ability and the non-exempt assessed valuation
of a county remain the same, but the state total calculated cost of the
Minimum Foundation Program increases, what logically would be the effect
on the number of mills of local taxation required to meet that county's
share in the cost of the Minimum Foundation Program?

Answer: The rate would have to be increased since the county would
have to raise more money on the same assessed valuation.

5. Why not use the assessed value of non-exempt property in each county to
determine the amount each county is required to provide instead of using
the Index of Taxpaying Ability?

Answer: The practice of assessing property at full value is relatively
new. When the point is reached where uniformity of evaluation
is assured throughout all the state, this can be done.

6. What would happen to the amount a county receives from the state if the
county failed to provide its minimum required effort?

Answer: The state's portion of the Minimum Foundation Program allocation
to that county would be decreased proportionately.


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7. Is the amount of money a county receives from the state under the Minimum
Foundation Program reduced if the county raised, through local taxes, con-
siderably more money than it is required to raise under the Minimum Founda-
tion Program?

Answer: No. The additional funds are retained and used in the county.

8. If a county has a kindergarten or junior college program, paid for wholly
from county taxes, on which it does not earn instruction units under the
Minimum Foundation Program is the county required to increase its local
effort to fully participate in the basic program?

Answer: No. The additional requirement holds only if the kindergarten
or junior college earns units under the foundation program.

9. Is it safe to assume that the ratio between a county's required minimum
effort and the total cost of its Minimum Foundation Program will remain
at the same ratio (percent) from year to year?

Answer: This assumption is not sound. The ratio does not remain constant.
Required minimum effort in a county is not based solely on the
program in that one county.

10. If a county adds an exceptional child program, approved by the State
Department of Education, to its educational program, will this increase
that county's required minimum effort?

Answer: The required minimum effort is based on the previous year's
total calculated cost of the program, so there would be a
year's lag in cost increase to the county. All other counties
would share in the increased cost.

11. If the same five factors are used, why does a county's Index of Taxpaying
Ability change from year to year?

Answer: Because of changes in the county's percent of the state totals
in the factors making up the Index.

13. Does a county's Index of Taxpaying Ability ever go down?

Answer: Yes. The indices of all the counties total 100 percent. All
counties could not have an increase in their index.

13. What is the difference between a county's "required local effort" and the
same county's "minimum required county effort?"

Answer: There is no difference. This also is sometimes called the
"county minimum contribution," "county requirement," or
"minimum local effort."


-15-










14. Is the five percent referred to in determining the effort required for
kindergarten the same as the five percent referred to in determining
the junior college required effort?

Answer: No. In determining effort required to participate in the
kindergarten program a county's required effort for grades
1-12 is increased by five percent. In the junior college
program the required effort is 5% of 95% of the calculated
yield of six mills levied on the non-exempt assessed valua-
tion of the state multiplied by a county's Index of Tax-
paying Ability.

15. When and to whom does a county pay its required local effort?

Answer: A county does not "pay" its required local effort at all.
This is simply a calculation in determining the state
share. The county share is deducted from the total cost
of the Minimum Foundation Program and the state pays the
remaining part, The county share never leaves the county.

16. Why do some counties choose to support their kindergarten program wholly
from local funds rather than participate in the state program?

Answer: The number of kindergarten units authorized by the legislature
has been frozen for the last six years. Additional counties
may not participate until additional units are made available.

17. Are counties required to contribute twenty-five percent to the sales tax
allocation?

Answer: Noo The sales tax allocation is all state money. Only the
Minimum Foundation Program has a required local effort.


-16-










TABLES


Table 1 Index of Taxpaying Ability shows the percent of each factor credited

to each county. These percentages are multiplied by the weight shown

at the top of each column and accumulated for the five factors to make

up the actual index shown in the last column,

Table 2 Application of Index of Taxpaying Ability applies the index of each

county to the total required local effort of the counties collectively

to show each county's requirement. Additional requirements for kinder-

garten and junior college programs are shown.

Table 3 Changes in Index, By County shows changes in the index for each county

at three-year intervals since 1955-56.

Table 4 Required Local Effort, Grades 1-12 only shows changes in the required

local effort, by county, at three-year intervals since 1955-56.

Additional requirements for kindergarten and junior college programs

are not included in this table since not all counties participate in

these programs.


-17-





TABLE 1
INDEX OF TAXPAYING ABILITY
FOR THE YEAR 1967-68


Sales Tax Gainfully Farm Valuation of Auto Tag
Collections Employed Products R. R. & Tel. Sales Index of
Counties 1965-66 Workers 1965 1964 Property 1966 1966 Taxpaying
(Comptroller) (lad. Co.) (U.S.Census) (RoR.Asmt.Bd) (.M.VC.) Ability
.3654 .2442 .0586 .0461 .2857
Alachua 1.2093 1.1654 1.3601 3.3409 1.3266 1.3392
Baker .0400 .0500 .2251 .8751 .1268 .1166
Bay 1.0905 .9403 .0632 .8660 1.1035 .9870
Bradford .0943 .1184 .4212 ,7328 .1847 .1746
Brevard 2o9978 4.0373 1.3040 2,1132 3.8884 3.3661
Broward 9.3789 7.6182 2.1451 1.3809 9.3213 8.1399
Calhoun .0482 .0521 .2041 .0237 .0901 .0691
Charlotte .1952 .2174 .1488 .7382 .3959 .2803
Citrus .1472 .1668 .1502 1.1029 .2454 .2243
Clay .1416 .1797 1.0065 .7462 .3599 .2918
SCollier .4979 .4311 .7873 .3661 .5055 .4946
SColumbia .2903 .3500 .6094 .8122 .3389 .3615
Dade 23.7643 2396697 5.0594 4.5872 18.1072 20.1448
De Soto .0855 .1223 .6844 .8720 .1735 .1910
Dixie .0325 .0686 .0391 .4108 .0668 .0689
Duval 9.3211 906088 1.2726 15.3556 7.5979 8.7056
Escambia 2.7610 2.9569 .4738 2.9064 2.8655 2.7114
Fiagler .0733 .0587 .3040 .8061 .0940 .1229
Franklin .0474 .0929 .0074 .3046 .0786 .0769
Gadeden .2337 .3341 l.1960 1.1142 .3273 .3819
Gilchrist .0246 .0159 .2047 .4424 .0475 .0588
Glades .0247 .0442 .3976 .5969 .0383 .0816
Gulf .1178 .1687 ,0115 .3634 .1344 .1401
Hamilton .0389 .0640 .4900 .2908 .0794 .0946
Hardee .1198 .1081 1.9829 .6810 .2128 .2786
Hendry .1427 .1282 2.5625 .3312 .1989 .3057
Hernando .1347 .1677 .4277 1.2036 .2262 .2353
Highlands .2867 .2804 2.7679 1.4892 .4517 .5331
Hillsborough 7.8950 8.0931 4.5596 6.5321 7.4437 7.5562
Holmes .0519 .0403 .3094 .4719 .1012 .0976







Indian River .3941 .4899 2.2519 .5623 .5813 .5876
Jackson .2669 .3346 1.2256 1.1844 .4019 .4205
Jefferson .0382 .0659 .4776 .8039 .0949 .1222
Lafayette .0131 .0178 .3433 .0890 .0334 .0429
Lake .7256 .7931 4.9920 2.1940 1.2291 1.2036
Lee 1.5782 1.3311 1.1995 .8283 1.4798 1.4330
Leon 1.3474 1.2488 .3426 .9145 1.3157 1.2354
Levy .0903 .1327 .4349 1.2054 .1603 .1923
Liberty .0075 .0248 .0538 .3999 .0369 .0409
Madison .0803 .1451 .5472 .8771 .1471 .1793
Manatee 1.0602 .9713 1.4901 .8627 1.4880 1.1768
Marion .9942 .9144 1.2898 2.4655 .9723 1.0536
Martin .2640 .3325 1.1779 1.4081 .4125 .4295
Monroe .8328 .6736 .0130 .0373 .7166 .6760
Nassau .1720 .2740 .5821 2.0001 .2422 .3253
Okaloosa .7652 .7063 .1774 .6677 1.0854 .8034
Okeechobee .1057 .0830 1.5128 .5281 .1501 .2148
SOrange 5.9375 5.6933 10.3414 1.9129 5.5097 5.8282
Osceola .1909 .2023 1.2026 .3354 .3943 .3177
Palm Beach 5.4547 5.2818 10.1276 3.3465 5.4113 5.5767
Pasco .4047 .3711 1.7822 2.0995 .8412 .6801
Pinellas 6.8747 6.8243 .5612 1.6772 8.4337 6.6982
Polk 3.8253 4.1264 13.7155 6.5589 3.6603 4.5573
Putnam .3673 .5004 .8879 1.5874 .5022 .5251
St. Johns .4446 .4517 1,1701 2.0997 .4189 .5578
St. Lucie .6498 .6227 3.4403 1.1529 .7516 .8590
Santa Rosa .2288 .2739 .4955 .4149 .4721 .3335
Sarasota 1.9703 1.7406 .5239 .5605 2.1483 1.8153
Seminole .4804 .7031 2.7320 1.4225 .9600 .8472
Sumter .0863 .1109 .3952 1.9542 .1727 .2212
Suwannee .1605 .1861 .9688 1.2270 .2076 .2767
Taylor .1994 .2380 .0644 .8374 .1780 .2242
Union .0158 .0359 .2101 .4357 .0464 .0602
Volusia 2.5039 2.5037 1.6587 2.8205 2.8203 2.5593
Wakulla .0230 .0478 .0179 .0854 .0593 .0420
Walton .1065 .1184 .2442 .3844 .2111 .1602
Washington .0531 .0794 .1735 .2012 .1216 .0930
TOTAL 100.0000 100.0000 100.0000 100.0000 100.0000 100.0000





TABLE 2
APPLICATION OF INDEX OF TAXPAYING ABILITY, 1967-68
(Used in computing county's part of Minimum Foundation Program)


County Minimum Additional
Index of Financial Required for Additional
Counties Taxpaying Effort Required Kindergarten Required for
Ability Grades 1-12 (5%) Junior College
Alachua 1.3392 $ 894,681 $ 44,734 $ 97,818
Baker .1166 77,897 8,517
Bay .9870 659,386 72,093
Bradford .1746 116,645 12,753
Brevard 3.3661 2,248,794 245,867
Broward 8.1399 5,438,033 594,556
Calhoun .0691 46,164 2,308 5,047
Charlotte .2803 187,260 20,474
Citrus .2243 149,848 7,492 16,383
Clay .2918 194,943 21,314
Collier .4946 330,428 36,127
Columbia .3615 241,508 26,405
bade 20.1448 13,458,160 1,471,419
De Soto .1910 127,602
Dixie .0689 46,030 2,302 5,033
Duval 8.7056 5,815,960 635,876
Escambia 2.7114 1,811,408 198,047
Flagler .1229 82,106 4,105 8,977
Franklin .0769 51,375
Gadsden .3819 255,136 27.895
Gilchrist .0588 39,283 1,964 4,295
Glades .0816 54,515 2,726
Gulf .1401 93,597 10,232
Hamilton .0946 63,200 6,910
Hardee .2786 186,125 20,350
Hendry .3057 204,229
Hernando .2353 157,197
Highlands .5331 356,149 38,939
Hillsborough 7.5562 5,048,079
Holmes .0976 65,204 7,129








Indian River
Jackson
Jefferson
Lafayette
Lake
Lee
Leon
Levy
Liberty
Madison
Manatee
Marion
Martin
Monroe
Nassau
Okaloosa
Okeechobee
Orange
Osceola
Palm Beach
Pasco
Pinellas
Polk
Putnam
St. Johns
St. Lucie
Santa Rosa
Sarasota
Seminole
Sumter
Suwannee
Taylor
Union
Volusia
Wakulla
Walton
Washington


.0930


.5876
.4205
.1222
.0429
1.2036
1.4330
1.2354
.1923
.0409
.1793
1.1768
1.0536
.4295
.6760
.3253
.8034
.2148
5.8282
.3177
5.5767
.6801
6.6982
4.5573
.5251
.5578
.8590
.3335
1.8153
.8472
.2212
.2767
.2242
.0602
2.5593
.0420
.1602


4,082


~sl--~-~-~


392,559
280,924
81,638
28,660
804,090
957,346
825,335
128,470
27,324
119,785
786,186
703,880
286,937
451,616
217,324
536,728
143,502
3,893,652
212,246
3,725,633
454,355
4,474,874
3,044,601
350,804
372,650
573,873
222,802
1,212,750
565,990
147 777
184,855
149,782
40,218
1,709,795
28,059
107,025
62,131


85,490


42,920
30,714
8,926
3,134
87,914
104,669
90,236
14,046

13,096
85,956
76,957
31,372
49,377
23,761
58,682
15,689
425,704


407,334


489,251
332,875
38,354
40.743
62,743
24,360

61,881
16.157


16,376
4,397
186,937
3,068
11,701


3,107 6,793


TOTAL 100.0000 $66,807,118 $198,985 $6,458,579

Senate Bill 317 (1967 Legislative Session), amending Section 230o0117(7), by providing that the financial effort
required to support a junior college shall not exceed fifty percent of the total cost of the Minimum Foundation
Program for that junior college, was vetoed. If this bill.passes at a future session, the Governors' veto notwith-
standing the junior college required effort .for Orange County will be $153,115.


~


~I~ ~


I1 1 1 -


.0930


- I--~-- I- I


1,366


39,309


H I III II ,


--------------


III,


III-I --


Ir i i


--~~-3---s~---0--


- --~-~- II-


--~--------~


I--


I -


-- I----- I


r







TABLE 3
CHANGES IN INDEX, BY COUNTY
/

Counties 1955-56 1958-59 1961-62 1964-65 1967-68

Alachua 1.3830 1.3299 1.1961 1.2721 1.3392
Baker .1549 .1465 .1309 .1150 .1166
Bay 1.1221 1.1069 1.0247 .9738 .9870
Bradford .2572 .2388 .1799 .1776 .1746
Brevard .9884 1.3525 2.1836 2.5555 3.3661
Broward 5.1028 6.1671 7.2909 7.7279 8.1399
Calhoun .1110 .1027 .0687 .0694 .0691
Charlotte .1699 .1807 .2509 .3047 .2803
Citrus .2172 .2136 .1897 .2061 .2243
Clay .2883 .2748 .2599 .2340 .2918
Collier .3217 .3906 .3767 .3859 .4946
Columbia .4280 .3828 .3130 .3245 .3615
Dade 23.0665 22.8560 21.8750 20.6165 20.1448
De Soto .2477 .2351 .2130 .2062 .1910
Dixie .0886 .0824 .0718 .0708 .0689
Duval 10.0738 9.4666 8.8793 8.9975 8.7056
Escambia 3.0813 3.0465 2.9677 2.8241 2.7114
Flagler .1921 .1773 .1498 .1364 .1229
Franklin .1099 .1070 .0893 .0820 .0769
Gadsden .6555 .6275 .5058 .3930 .3819
Gilchrist .0855 .0812 .0687 .0623 .0588
Glades .1019 .0990 .0901 .0848 .0816
Gulf .2283 .1822 .1538 .1420 .1401
Hamilton .1628 .1508 .1074 .1029 .0946
Hardee .2991 .2804 .2666 .2664 .2786
Hendry .3013 .2914 .2691 .3071 .3057
Hernando .2230 .2256 .2338 .2342 .2353
Highlands .4839 .4738 .5102 .5175 .5331
S Hillsborough 8.2623 7.9590 7.9734 7.8007 7.5562
Holmes .1977 .1892 .1141 .1040 .0976








Indian River
Jackson
Jefferson
Lafayette
Lake
Lee
Leon


Levy
Liberty
Madison
Manatee
Marion
Martin
Monroe
Nassau
Okaloosa
Okeechobee


Orange
Osceola
Palm Beach
Pasco
Pinellas
Polk
Putnam
St. Johns
St. Lucie
Santa Rosa
Sarasota
Seminole
Sumter
Suwannee
Taylor
Union-
Volusia
Wakulla


--------


.4868
.6479
.2173
.0645
1.3764
.9806
1.3124
.2534
.0538
.2824
1.1747
1.2064
.3239
.7034
.4256
.5313
.1162
4.9014
.3231
4.9071
.7356
6.5901
4.6785
.6536
.8745
.7357
.2767
1.4634
.8249
.3140
.3720
.3564
.0856
2.8362
.0754


--- -~I--


.5108
.6190
.2010
.0578
1.3414
1.0153
1.2769
.2443
.0586
.2612
1.1891
1.1466
.3431
.6277
.3952
.6382
.1144
4.8937
.3124
4.9816
.7251
6.9379
4.4190
.6607
.7886
.7496
.3429
1.6927
.8024
.2990
.3512
.2634
.0807
2.7609
.0718


~ ----


Walton .2693 .2508 .1773 .1682 .1602
Washington .1638 .1571 .1088 .0973 .0930
TOTAL 100.0000 100.0000 100.0000 100.0000 100.0000


_._ _11_1


_I ~I


.5279
.4682
.1431
.0480
1.3946
1.1498
1.1934
.1961
.0452
.2028
1.2097
1.0235
.3534
.6424
.3472
.7083
.1140
5.7632
.3109
5.0567
.6294
7.5445
4.3622
.5636
.6466
.8099
.3442
1.7555
.7250
.2235
.2670
.2279
.0622
2.6026
.0475


~


_1_1_


.5541
.4183
.1306
.0427
1.4392
1.2716
1.2186
.1987
.0428
.1953
1.1948
1.1004
.4046
.6426
.3416
.7283
.1641
6.1884
.3327
5.3689
.6826
7.0941
4.3828
.5320
.5933
.8176
.3246
1.8645
.7653
.2251
.2654
.2257
.0628
2.5783
.0472


_____


I~ __


~~ ___


__~


.5876
.4205
.1222
.0429
1.2036
1.4330
1.2354
.1923
.0409
.1793
1.1768
1.0536
.4295
.6760
.3253
.8034
.2148
5.8282
.3177
5.5767
.6801
6.6982
4.5573
.5251
.5578
.8590
.3335
1.8153
.8472
.2212
.2767
.2242
.0602
2.5593
.0420


~I_


--~---"


I


I"


I~







TABLE 4


REQUIRED LOCAL EFFORT, GRADES 1-12 ONLY


Counties 1955-56 1958-59 1961-62 1964-65 1967-68

Alachua $ 311,764 $ 412,457 $ 671,771 $ 787,688 $ 894,681
Baker 33,256 45,436 70,017 71,208 77,897
Bay 240,905 343,296 575,507 602,979 659,386
Bradford 55,219 74,062 96,227 109,970 116,645
Brevard 212,201 419,466 1,226,386 1,582,372 2,248,794


Broward
Calhoun
Charlotte
Citrus
Clay
Collier
I Columbia
SDade
De Soto
Dixie
Duval
Escambia
Flagler
Franklin
Gadsden
Gilchrist
Glades
Gulf
Hamilton
Hardee
Hendry
Hernando
Highlands
Hillsborough
Holmes


1,095,525
26,214
36,476
48,963
61,895
69,066
91,888
4,952,171
53,179
19,973
2,162,755
694,603
43,304
23,595
140,730
19,274
22,971
49,014
34,952
64,214
64,686
47,876
103,889
1,773,842
42.444


1,912,674
31,852
56,043
66,246
85,227
121,141
118,722
7,088,595
72,914
25,556
2,935,986
944,846
54,988
33,185
194,614
25,183
30,704
56,508
46,769
86,964
90,375
69,968
146,945
2,468,416
58.679


4,094,825
40,421
134,204
111,615
145,969
201,493
167,421
12,282,627
113,932
40,325
4,749,453
1,666,764
88,139
47,766
270,548
38,584
50,604
82,266
60,319
142,602
143,939
125,057
272,901
4,264,896
61.031


4,785,136
42,973
188,671
127,618
144,893
238,950
200,931
12,765,790
127,680
43,840
5,571,275
1,748,690
84,459
50,775
243,347
38,576
52,508
87,927
63,716
164,956
190,157
145,017
320,437
4,830,213
64,397


5,438,033
46,164
187,260
149,848
194,943
330,428
241,508
13,458,160
127,602
46,030
5,815,960
1,811,408
82,106
51,375
255,136
39,283
54,515
93,597
63,200
186,125
204,229
157,197
356,149
5,048,079
65,204


_I


i ........


I_ ~I


.. _____ i --L -


---


I


- -


- I








Indian River
Jackson
Jefferson
Lafayette
Lake
Lee
Leon
Levy
Liberty
Madison
Manatee
Marion
Martin
Monroe
Nassau
Okaloosa
Okeechobee
Orange
Osceola
Palm Beach
Pasco
Pinellas
Polk
Putnam
St. Johns
St. Lucie
Santa Rosa
Sarasota
Seminole
Sumter
Suwannee
Taylor
Union
Volusia
Wakulla
Walton
Washington


I -


104,512
146,053
48,985
13,848
295,501
210,526
281,760
54,403
12,128
60,629
264,808
259,003
69,538
151,014
91,372
114,065
24,947
1,052,287
69,367
1,106,186
157,927
1,485,577
1,004,432
140,322
187,747
157,948
62,375
314,179
177,099
67,413
79,865
76,516
18,378
608,907
16.188
57,816
36.924


----- ~


158,420
191,978
62,338
17,926
416,024
314,887
396,020
75,768
18,174
81,009
368,789
355,608
106,410
194,676
122,568
197,932
35,480
1,517,740
96,888
1,545,001
224,884
2,151,731
1,370,515
204,910
244,578
232,482
106,347
524,977
248,858
92,732
108,922
81,691
25,028
856,270
22,268
77,783
48.723


TOTAL $21,677,389 $31,014,152 $55,204,326 $61,920,257 $66,807,118


296,487
262,958
84,197
26,959
745,958
615,017
638,338
110,137
25,386
113,900
711,763
574,833
198,482
343,614
185,714
378,863
64,026
3,082,681
166,297
2,840,020
336,660
4,237,255
2,333,299
316,537
363,153
454,868
193,314
939,000
387,796
119,548
142,816
127,996
33,270
1,531,316
25,407
94,836
64.016


I


II


~~I


, tm


343,100
259,012
80,868
26,440
891,156
787,378
754,560
123,036
26,502
120,930
739,823
681,371
250,529
397,900
211,520
450,965
101,611
3,831,873
206,009
3,324,437
422,668
4,392,685
2,713,841
329,416
367,373
506,260
200,993
1,154,503
473,876
139,383
164,336
139,754
38,886
1,596,490
29,226
104,150
60,248


I~


I


_ _II


I


392,559
280,924
81,638
28,660
804,090
957,346
825,335
128,470
27,324
119,785
786,186
703,880
286,937
451,616
217,324
536,728
143,502
3,893,652
212,246
3,725 633
454,355
4,474,874
3,044,601
350,804
372,650
573,873
222,802
1,212,750
565,990
147 777
184,855
149,782
40,218
1,709,795
28,059
107,025
62,131


II~


3 9487


~s_


----


- -


I----




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