PUBLIC SCHOOL FINANCE PROGRAM
Research Report 40
Division of Research
Thomas D. Bailey
State Superintendent of Public Instruction
? 71 9
Research Report-40 is a summary of the State
program for financing Florida public schools
prepared by the Division of Research of the
Florida State Department of Education. Basic
data for this report were compiled by Mrs.
Marie A. Kohler, Specialist in Statistics.
The preparation of these reports is one phase
in the implementation of Florida's plan for
improving statistical services in the State
Department of Education under the provisions
of Title X, National Defense Education Act.
FLORIDA PUBLIC SCHOOL FINANCE PROGRAM, 1965-66
Research Report 40 August, 1965
Page 6 4th line from bottom of page delete $201,926,716 and insert $201,630,353
Page 15 1st line after the words "5 percent." insert the following:
State Board Regulations provide that ADA for the first two months be
determined by dividing by 15 the total student semester hour registra-
tions at the close of fall registration.
Page 30 3rd line the section PROVISIONS FOR SCHOOL AUDITS delete the sentence
"A copy must be filed with the Governor, the State Comptroller, and the
State Superintendent of Public Instruction." and insertthe following:
A copy of the audit report is submitted to the Governor, the Legislative
Appropriations and Auditing Committee, the County Superintendent of Public
Instruction, the County Board of Public Instruction, the State Comptroller,
and the State Superintendent of Public Instruction.
Introduction .. . . . . . . . . . . 2
Selected Program Facts . . . . . . . . . . 3
State Support . . . . . . . . . . . 3
Local Support . . . . . . . . . . 4
Summary of State Distributions . . . . . . . .
Description of State Distributions . . . . . .. 6
State Minimum Foundation Program Fund, K-12 . . . 6
State Junior College Minimum Foundation Program Fund . . 12
County Capital Outlay and Debt Service School Fund . . 15
County School Sales Tax Trust Fund . . . . ..... 17
County School Additional Capital Outlay Trust Fund . 18
Racing Commission Funds . . . . . . .. .. . 19
State Textbook Fund .. .. . . . . . .. 19
Junior College Construction Fund . . . . . . . 20
Vocational-Technical Center Construction Fund.. . .. 21
Public School Driver Education Fund . . . . . . 22
School Lunch Salary Supplement . . . . . .... 23
State Permanent School Fund . . .. . . ... .. 24
Provisions for Raising School Revenue.. . . . . . . 24
Property Assessments . . . . . . . . . .. 24
Local Districts . . . . . . . . . . 24
Provisions for School Indebtedness . . . . . . ... 25
Initiating Bond Issues. . . . . . . . . 25
Limitations on Issuance of Bonds . . . . 26
Limitations on Debt . . . . . . . . . 26
Voting Requirements . . . . . . . .
Approval and Sale of Bonds . . . . . . . 26
Bond Records, Tax Levies, and Payments . . . . . . 27
Short-Term Indebtedness . . . . . . . . 27
Provisions for School Bdgets . . . ... . . 28
Budget Forms . . . . . . . . . 28
Local Approval . . . . . . . . . . . 28
State Review and Approval . . . . . . . . 29
Provisions for School Audits . . . .
. . . . . 30
This report deals primarily with the State program for financing public
schools in Florida. Its purpose is to answer questions regarding State
financing of public schools. The organization of this report follows the
general format used by the U. S. Office of Education in its State Public
School Finance series. An seff.:rt has been made to present Florida's State
program in a clear, orderly manner and to avoid legal and technical lan-
guage when possible., Still, it does not make for light reading. It should
be recognized that any program involving $.322 million must be detail-d in
application and comp.li.ca.ed to some degree, This report will be of primary
interest to the serious student of school finance. Legal references have
been made only where necessary.
Estimated or appropriaced amounts for the 1965-66 school year are
shown for each fund. These amounts are int..en.ed to serve only as a general
measure of the magnitude of each diseribucion. The primary consideration
is the "hew" of the State progzraa for financing public schools. Praci-c-
ally all st r fund.s are allocated on the basis of form ulas written into
state law and funds, if not "earned" by the counties on the basis of pupils
or teacher units, remain in the State I'reaeury. There are no di&cre'ttinary
grant funds available.
SELECTED PROGRAM FACTS
Approximately 55 percent of the revenue available to the county school
boards for operation of the school program is provided by the State.
Funds for State grants to county school systems are provided mainly by
Legislative appropriations. Approximately 23 percent is obtained from ear-
marked sources. Less than one percent is from permanent school endowments.
About 76 percent of the State funds apportioned for the public schools,
kindergarten through grade 12 and junior college, is distributed under the
provisions of the State Foundation Program. About 10 percent is distributed
through the County School Sales Tax Trust Fund.
Allowances in the State Foundation Program include amounts for salaries
of instructional personnel, pupil transportation, other current expense, and
capital outlay and debt service. County School Sales Tax Trust Fund distri-
butions are for general school support.
Foundation Program salary allowances for instructional personnel in
kindergarten and grades 1-12 are based on instruction unit salary values
which provide allotments ranging from $2,800 to $5,800, depending on the
rank of the teaching certificate held, contractual status, and years of
Florida teaching service. The unit salary value for a beginning bachelor's
degree teacher is $3,950. Other K-12 Foundation Program allowances include
$1,250 per transportation unit, $325 per instruction unit for other current
expense and $400 per instruction unit for capital outlay and debt service.
Junior College Foundation Program instruction unit values for instruc-
tional salaries range from $3,200 to $5,800 based on college preparation,
experience, and contractual status. Other Junior College Foundation Program
allowances include $1,250 per transportation unit, $850 per instruction unit
for other current expense, $400 per instruction unit for capital outlay and
debt service and $17,500 for administrative expense of the first approved
junior college center in each county.
County Capital Outlay and Debt Service funds, although included in the
Foundation Program, are separately provided for by earmarked motor vehicle
license funds. Three other State funds, which account for over nine per-
cent of the total State distribution also provide assistance for school
facilities. State sources provide essentially the total construction
cost of junior college facilities.
Earmarked sales tax receipts provide $550 per instruction unit for the
County School Sales Tax Fund. Earmarked driver's license funds provide
support for the Public School Driver Education Program.
Other State distributions for schools include the State Textbook Fund
and the School Lunch'Salary Supplement Fund. Racing Commission funds are
distributed to some county school boards under special acts or by the boards
of county commissioners.
Local revenue for school support is derived almost wholly from real
and personal property taxes. There are no local non-property taxes which
may be levied specifically for the schools. All sixty-seven school dis-
tricts in the state are county-wide districts.
County boards of public instruction must levy at least a three-mill tax
on the local non-exempt assessed valuation of property for the support and
maintenance of schools and are authorized to levy up to ten mills without a
vote of the people. In addition, the qualified electors who pay a tax on
real or personal property in the county may vote to increase the levy not
to exceed ten mills. Twenty mills is the Constitutional maximum school
village that may be levied.
The amount of school revenue to be provided by each county for partici-
pation in the State Foundation Program for grades 1-12 is determined by mul-
tiplying the county's index of taxpaying ability by 25 percent of the total
cost of the Minimum Foundation Program for K-12 for all counties for the
preceding fiscal year. Counties operating kindergartens add 5 percent to
the local required effort for grades 1-12. The amount to be provided by
each county that operates or participates in the support of a junior college
is determined by multiplying the county's index of taxpaying ability by 5
percent of the calculated yield of a six-mill levy on the aggregate non-
exempt assessed valuation of the State.
The Constitution prohibits school districts from issuing school bonds
in excess of 20 percent of the non-exempt assessed valuation of the county.
State Board of Education regulations further limit the amount to 10 percent
except under specific State Board approval.
Tax levies for debt service are in addition to the twenty-mill maximum
for school current operation but are limited by State Board of Education
regulations to six mills except with specific board approval.
SUMMARY OF STATE DISTRIBUTIONS
The following table provides a list of State distributions and gives a
brief statement of the basis for each distribution. The estimated amount of
each state aid fund for 1965-66 and the percent that each fund represents
of the estimated total State distribution are shown to give a general indica-
tion of the extent of each distribution.
SUMMARY OF STATE DISTRIBUTIONS
State Aid. 1965-66
Distribution Amount Percent Basis of Distribution
Est. Total School Grants
1. Minimum Foundation
2. Minimum Foundation
3. County Capital Outlay
and Debt Service Program
(grades K-12 and Junior
4. County School Sales Tax
Trust Fund (general use,
5. County School Additional
Capital Outlay Trust Fund
6. Racing Commission Funds
7. State Textbook Fund
8. Junior College
10. Public School Driver
11. School Lunch Salary
12. State Permanent School
minus local share;
62.5 based on instruction
units determined by
average daily attend-
ance (ADA) and trans-
portation units deter-
6.4 mined by pupils
7.0 $400 per instruction
9.6 $550 per instruction
Amount per pupil for
2.9 the increased ADA
2.4 Based on special acts
1.9 Number of pupils
5.2 Legislative authoriza-
tion based on formula
Number of pupils
Driver Education units
.5 based on pupils
.4 Number of "Type A"
( .3) -Distributed as a part
of State Foundation
DESCRIPTION OF STATE DISTRItIONS.
STATE MINIMUM FOLDATI'ON PROGRAM.,1FND K-12
Legal Authorization.--Sec. 236.01-236.13, Florida Statutes.
Requirements for participation. --In order to participate in the State
appropriation for the Minimum Foundation Program, all school systems are
required by law to: (a) maintain adequate records and file required
reports; (b) operate all schools for a term of at least 180 actual teaching
days; (c) provide written contracts for all instructional personnel and
require not less than 196 days of service for all members of the instructional
staff, except principals and other special instructional personnel required
to be employed on a twelve month basis; (d) employ for the full year at
least one qualified supervisor or supervisors of instruction; (e) comply
with any State Board regulations relating to minimum and maximum classroom
teaching loads; (f) expend funds for instructional salaries in accordance
with properly adopted salary schedules which make provisions for a minimum
annual salary of $4,000 for each member of the instructional staff holding
a continuing contract and additional yearly increments for each such member
reaching a minimum of $5,000 after ten years of teaching service in Florida
public schools; (g) observe all requirements relating to school budgets;
(h) make the minimum financial effort required for the support of the foun-
dation program; (i) nominate and elect a five-member county board, unless a
larger county board is provided for by special legislative act; and (j)
have only one county-wide school district in the county.
ao/o 6.30o 1353
Distribution plan.--$, tgi@AMiS,4 The cost of the foundation program for
each county is made up of the computed cost for instructional salaries,
transportation, current expenses other than instructional salaries and
The amount to be provided locally toward the cost of the K-12 Minimum
Foundation Program by each county is determined by multiplying each county's
index of taxpaying ability by 25 percent of the total calculated cost of the
Minimum Foundation Program for kindergarten and grades 1-12 for all counties
collectively for the preceding fiscal year for instructional salaries, trans-
portation, current expense other than instructional salaries and transporta-
tion, and recalculation funds. However, the combined required effort of all
counties together for grades 1-12 cannot increase more than 5 percent in
The index of taxpaying ability of each county is expressed in terms of
that county's percent of the total taxpaying ability of all of the counties
combined. This objectively developed index is based on sales tax returns,
number of gainfully employed workers excluding government and farm workers,
value of farm products, assessed value of railroad and telegraph property,
and automobile tag registrations. If the county is operating kindergartens
under the foundation program, the required county effort for grades 1-12 is
increased 5 percent. The required county effort for K-12 for 1965-66 is
$62,465,437. If a county fails to make the financial effort required for
participation in the Foundation Program, the state's share of that county's
allocation is decreased proportionately.
The amount of State Foundation Program funds to be apportioned to each
county is found by subtracting from the objectively determined cost of the
program in each county the amount required to be provided through local effort
by such county. The amount automatically increases, within limits set by
legislative appropriation, as attendance increases and teacher preparation
improves. The total cost of the program for each county is made up of the
computed cost for instructional salaries, transportation, current expense
other than instructional salaries and transportation, and recalculation
The number of instruction units is determined by dividing the average
daily attendance (ADA) during the preceding year in all elementary and
secondary schools having 300 or more pupils, by 27 and, by dividing the
attendance in smaller schools by progressively smaller numbers ranging as
low as 17 for an isolated school with less than 60 pupils. All elementary
and secondary schools with an ADA of less than 120 pupils are classified
as isolated or non-isolated for the purposes of computing instruction
units. This classification is determined by regulations of the State Board
and is based on number of pupils, school population density, surrounding
road conditions and distance from another school of the same type.
In addition to regular and special units earned by ADA the law provides
units which protect a county against a sudden decline in units as a result
of low ADA caused by hurricane, pestilence, flood, epidemic, or other factors
beyond the control of the county board of any county. When the ratio between
the total ADA and the total average daily membership (ADM) of students in the
entire county for the year is below the ratio of the highest two of the pre-
ceding four years in that county, the average ratio between the ADA and the
ADM in that county for the highest two of the preceding four years is used
as the basis for calculating the total number of instruction units for instruc-
tional personnel in the county. Units provided under the above conditions
are called "ratio units."
To the number of instruction units for regular teachers, thus deter-
mined, is added the following, if utilized: (1) one unit for each group of
ten or more exceptional children taught by a properly qualified full-time
teacher of exceptional children as a special class; one unit for each properly
qualified member of the instructional staff devoting full-time to instrur-
tion of exceptional children from regular classes; and one unit for each full-
time qualified teacher of ten or more exceptional children between three and
five years of age needing special instruction, because of certain handicaps,
for entrance into special classes or schools; (2) one unit for each qualified
full-time vocational teacher employed to teach courses approved under regula-
tions of the State Board; provided, the ADA in classes taught by such teacher
is not less than fifty percent of the ADA used for calculating the number of
instruction units other than for vocational teachers; a proportionate part
of an instruction unit is allowed for each additional qualified vocational
teacher employed for evening, part-time or short-unit classes; provided the
ADA of any such class is not less than ten; (3) one unit for each qualified
adult education teacher employed full-time for a class with an ADA of not less
than fifteen; a proportionate part of an instruction unit for a teacher of
part-time or short-unit classes or for a class where the ADA falls below the
requirement for a full instruction unit; (4) one unit for each 25 pupils or
major fraction thereof in ADA in kindergartens when teachers are employed
full-time, except the State Board may authorize one unit for each class of
twenty or more pupils in isolated schools.
For each eight of the above units, one administrative and special instruc-
tional services (ASIS) unit is allowed when used in accordance with regula-
tions of the State Board. One library service unit, when used in accordance
with regulations of the State Board, is to be allocated each county for each
of the fiscal years, 1965-66 and 1966-67. Beginning 1967-68 one library
service unit for each 500 pupils in ADA or proportionate fraction thereof in
grades 1-12 will be allowed when used in accordance with regulations of the
State Board. However, the number of library service units allocated any
county must be decreased by the number of full-time librarians employed by
the county in the 1963-64 fiscal year, except that each county shall be
allowed at least one library service unit each year.
To the foregoing, units for supervisors of instruction are allocated,
if used, as follows: one supervisory unit for the first 100 instruction
units or fraction thereof; one additional supervisory unit for each additional
100 units or fraction thereof except that not more than seven units for super-
visors are allocated any county.
The sum of the instruction units described above is the total number of
instruction units for each county for operation of the kindergarten through
grade twelve school program.
The amount to be included in the program for instructional salaries is,
determined by multiplying the number of instruction units represented by
persons holding certificates based on various academic classifications by
the MFP salary value of instruction units as follows: an earned doctor's
degree (Rank I) by $5,000, an earned master's degree (Rank II) by $4,400,
an earned bachelor's degree (Rank III) by $3,950, three to three and nine-
tenths years of college training (Rank IV) by $3,000, two to two and nine-
tenths years of college training (Rank V) by $2,800. A Rank VI certificate,
based on less than two years of college preparation is provided for in
State law but no State funds are allocated on such a certificate. An addi-
tional $400 is added to the value of each instruction unit sustained by
instructional personnel in Rank III or above who hold a continuing contract;
and another additional $400 is added if such instructional person has com-
pleted ten years of efficient teaching service in Florida public schools:
The amounts included for salaries of supervisors, administrative and special
instructional service personnel, vocational teachers, and library service
personnel is increased by up to twenty percent, for salaries of such personnel
who are employed for the two month period, or fractional part thereof, beyond
the ten months of employment required by law for all instructional personnel.
Each teacher'must be paid at least ninety percent of the salary allotment
for the rank of that teacher. The amount paid persons in each rank must be
at least equal to the amount included in the MFP for that rank.
The amount included for transportation is determined by multiplying the
number of transportation units by $1,250. Transportation units are computed
on the basis of the number of transported pupils in ADA and the area in which
pupils are transported.
One transportation unit, or proportionate fraction, is allowed for each
80 pupils in ADA, grades K-12, transported at public expense the preceding
year. Pupils must live at least two miles from the nearest appropriate
school, except this mileage limitation does not apply to physically handi-
capped pupils. For physically handicapped pupils, one transportation unit
is allowed for each vehicle used exclusively for transporting ten or more
such pupils in ADA to a public school with a proportionate fraction of a
unit for less than ten but not less than four such pupils transported. The
ADA of physically handicapped pupils transported is not included in the cal-
culation of other transportation units. One transportation unit is allowed
for each 56 land sections of school transportation area when 65 percent or
more of the total school bus mileage in the county is over paved or hard-
surfaced roads; for each 54 land sections when 50 to 64.9 percent; for each
52 land sections when 35 to 49.9 percent; for each 50 land sections when 20
to 34.9 percent; and for each 48 land sections when less than 20 percent.
Land sections are counted if they are within 1.5 miles of a regular route
of a vehicle with a passenger seating capacity exceeding 18 linear feet.
Each additional section is counted which is traversed by a regular route
served by a smaller vehicle. The term land section means a regular govern-
ment-survey land section, or the equivalent of such section where not
established by government survey.
The amount for current expense other than instructional salaries and
transportation, "other current expense," is determined by multiplying the
total number of instruction units by $325. Of this amount $25 per
instruction unit is designated for the purchase of instructional materials.
If the ADA in any county for the first two months of any school year
shows an increase over the ADA in that county during the first two months
of the preceding year greater than four percent in 1965-66, three percent
in 1966-67, two percent in 1967-68 and one percent in 1968-69, the State
Board has authority to increase the State portion of the foundation program
fund for such county by the percentage of increase which is in excess of
the applicable percentage for that respective year. Beginning in 1969-70
the percentage by which State funds are to be increased will be the percent
increase in first two months ADA over the first two months ADA of the pre-
vious year. These additional amounts are known as "recalculation funds."
The total allowable cost of the foundation program is determined by
the total of the amounts calculated for salaries, transportation, other
current expense and recalculation funds. From this total is subtracted the
required county contribution. The balance, or remainder, is provided by
the State as its share of the cost of the program.
Funds for salaries, transportation, and other current expense are dis-
tributed to the respective counties in approximately twelve equal monthly
payments beginning July 15 each year. Recalculation funds are distributed
to the counties, 35 percent in January, 35 percent in February, and the
balance in March each year.
STATE JUNIOR COLLEGE MINIMUM FOUNDATION PROGRAM FUND
Legal Authorization.--Sec. 230.0112-230.0117, Florida Statutes.
Requirements for participation.--In order to participate in the state appro-
priation for the Junior College Minimum Foundation Program a ccrunt) shall
provide evidence of its effort to maintain an adequate junior college program
which shall meet minimum standards prescribed by the State Board.
Distribution plan.--$20,722,523. The cost of the Junior College Foundation
Program for each junior college is made up of the computed cost for instruc-
tional salaries, transportation, and current expense other than instructional
salaries and transportation.
The amount to be provided locally toward the cost of the Junior College
Minimum Foundation Program by each county that operates or participates in
the support of a junior college is determined by multiplying such county's
index of taxpaying ability by 5 percent of 95 percent of the calculated yield
of a six-mill tax levied on the total non-exempt assessed valuation of the
The index of taxpaying ability of each county is expressed in terms of
its percent of the total taxpaying ability of all of the counties combined.
This objectively developed index is based on sales tax returns, number of
gainfully employed workers excluding government and farm workers, value of
farm products, assessed value of railroad and telegraph property, and automo-
bile tag registrations. The required county effort for junior college for
1965-66 is $3,232,244. Any county board which fails to make the financial
effort required to support the junior college is ineligible to receive any
State-funds under the Minimum Foundation Program during such period of
One instruction unit is allowed for each twelve students in average
daily attendance (ADA) for the first 420 students and one additional unit is
allowed for each additional 15 students. One unit or proportionate fraction
is allowed for administrative and special instructional services for each
eight instruction units and one unit or proportionate fraction is allowed
for student personnel services for each 20 instruction units.
The amount included in the program for instructional salaries is deter-
mined by multiplying the number of units, represented by persons holding
certificates based on various academic classifications, by the Junior College
Minimum Foundation Program salary value of instruction units as follows: an
earned doctor's degree (Rank I) by $5,200; an earned master's degree (Rank II)
by $4,600; an earned bachelor's degree (Rank III) by $4,150; three to three
and nine-tenths years of college training (Rank IV) by $3,200. An additional
$300 is added to the value of each instruction unit sustained by instructional
personnel in Rank III or above who hold a continuing contract; and another
additional $300 is added if such instructional person has completed ten years
teaching service in Florida public schools.
For administrative and special instructional service personnel and stu-
dent personnel services employed on a twelve month basis, the rank value is
increased 20 percent. The total amount paid for salaries must be at least
equal to the amount allotted for salaries.
An amount for current expenses other than instructional salaries and
transportation is calculated at the rate of $850 for each junior college
instruction unit. For administrative expenses,including salaries,of the
first approved junior college center in each county $17,500 is added, and
$10,000 is added for each additional center approved.
One transportation unit, or proportionate fraction, is allowed for each
30 junior college pupils in ADA transported at public expense the preceding
year to a public junior college. Pupils must live at least two miles from
the junior college. The amount for transportation is determined by multi-
plying the number of transportation units by $1,250.
If the ADA in any junior college for the first two months of any school
year shows an increase of more than 5 percent over the ADA in the junior
college during the first two months of the preceding year, the State Board
has authority to increase the State portion of the foundation program fund
for such junior college by the percentage of increase which is in excess of
(,5ee d rn e ")
5 percent.,4 These additional amounts are known as "recalculation funds." The
total allowable cost of the Junior College Foundation Program is determined
by the total of the amounts calculated for salaries, transportation, current
expense other than salaries and transportation, and administrative expense.
From this total is subtracted the required county contribution. The balance,
or remainder, is provided by the State. Funds for salaries, transportation,
and other current expense are distributed to the counties in which the junior
college is located in approximately twelve equal monthly payments beginning
July 15 each year and are solely for junior college expenditure. Recalcula-
tion funds are distributed to the counties, 35 percent in January, 35 percent
in February, and the balance in March of each year.
COUNTY CAPITAL OUTLAY AND DEBT SERVICE SCHOOL FUND
Legal Authorization.--Art. XII, Sec. 18, Constitution of the State of Florida.
Requirements for participation.--Each county must earn instruction units under
the State Foundation Program Fund.
Distribution plan.--$22,498,763. Capital outlay and debt service needs are
recognized in the State Foundation Program through an allowance of $400 per
instruction unit. Support for this portion of the foundation program is
separately provided through a Constitutional amendment, (Sec. 18, Article
XII), effective January 1, 1953 and amended in November 1964, which guaran-
tees this support until the year 2000 by earmarking the first proceeds of
revenue derived from motor vehicle license sales. Capital outlay and debt
service funds for kindergarten and grades 1-12 are increased by the same
percentage that other state funds for the Minimum Foundation Program K-12
are increased for recalculation. However, these recalculation funds are
provided from the State general revenue fund rather'than from earmarked
motor vehicle license funds, but must be used in the same manner as other
capital outlay and debt service funds, except as a basis for selling bonds.
At the request of each school district, bonds may be issued by the State
Board of Education (SBE) for and on behalf of the county to the extent that
annual principal and interest payments do not exceed 75 percent of the county's
annual entitlement. These bonds are referred to as "SBE bonds." The county's
share from the earmarked proceeds of the State motor vehicle license fees is
pledged for the redemption of these bonds. The State Superintendent is the
agent of the State Board responsible for the administration of Sec. 18,
Article XII and is authorized to provide personnel in the State Department
of Education (SDE) for the purpose of carrying out the fiscal duties and
responsibilities of administering the provisions of this section. An admin-
istrative expense fund is provided by a deduction from the County Capital
Outlay and Debt Service School Fund each year, at a percentage rate deter-
mined by the State Board, to be used for.payment of salaries of personnel
and expenses of administering Sec. 18, Article XII. Direct costs of issuing
bonds under this section including cost of printing bonds, court fees, legal
advertising, approving attorney's fee, official statement preparation and
printing, and costs of signing and delivery of bonds are charged to the
counties in whose behalf the bonds are issued. These costs are deducted
from the distribution of County Capital Outlay and Debt Service School Funds
for such counties. The State Board of Administration (SBA) is designated as
the agent for the State Board of Education for administering the debt ser-
vice on such bonds and, the investment of capital outlay funds from the
County Capital Outlay and Debt Service School Fund and proceeds of bonds
issued under Sec. 18, Article XII. Earnings on investments other than debt
service reserves are distributed among the counties in proportion to their
respective equities in the funds invested and are used for capital outlay
purposes in the same manner as current capital outlay and debt service funds.
Interest earned on investments of debt service funds for each county are
applied on future debt service requirements of such county. From the amount
of capital outlay and debt service funds each county is entitled to receive
there is deducted the amount necessary to pay expenses of issuing bonds, to
meet debt service requirements, to provide administrative expense of SDE and
SBA, and to pay direct costs of issuing bonds. The remaining portion for
each county is sent to the county to be spent on projects included in the
county's priority list. The county's priority list is based on a school
facilities survey conducted under regulations of the State Board. After all
capital outlay needs in a county have been met, any remaining funds may be
used in accordance with a plan for expenditure determined by the county
board and approved by the State Board.
These funds are distributed each year to the county boards separately
for the K-12 school program and for the junior college program. The recal-
culation funds provided for the K-12 program are distributed in March each
COUNTY SCHOOL SALES TAX TRUST FUND
Legal Authorization.--Sec. 236.075, Florida Statutes.
Requirements for participation.--Each county must earn instruction units
under the State Foundation Program.
Distribution plan.--$30,935,799. This fund is apportioned, within limits of
the legislative appropriation, to local school systems at the rate of $550
per instruction unit and is not restricted to a specific educational use.
The funds are distributed to the county boards in separate distributions for
the K-12 school program and for the junior college program in approximately
twelve equal monthly payments beginning July 1 each year. County School
Sales Tax Funds for kindergarten and grades 1-12 are increased by the same
percentage that State funds for the Minimum Foundation Program K-12 are
increased for "recalculation." These recalculation funds are distributed
to the counties, 35 percent in January, 35 percent in February, and the bal-
ance in March each year.
COUNTY SCHOOL ADDITIONAL CAPITAL OUTLAY TRUST FUND
Legal Authorization.--Sec. 236.074, Florida Statutes.
Requirements for participation.--Each county school system is required by
law to create a separate fund known as the School Construction Fund and to
place in this fund from any available source, other than money or interest
received from foundation program capital outlay funds or proceeds from loans
against State funds provided for capital outlay, an amount equal to the
amount it seeks to obtain from the State.
Distribution plan.--$9,284,600. Each county's share of this fund amounts
to $200 for each pupil increase in ADA in grades 1-12 for the last completed
school year over the highest previous year. ADA for the previous year may
never be computed for purposes of this act as less than the ADA of 1955-56.
Funds are committed to the county boards after evidence is furnished the
State Superintendent that an equal amount from local funds has been deposited
in the School Construction Fund and the State Board has approved the expen-
diture for construction or reconstruction in accordance with priority of
needs as shown by a survey. Officially committed funds are transmitted to
the counties when needed to meet capital outlay requirements.
Any county not matching and otherwise qualifying for all or any part of
the money it is entitled to during the first year of a biennium will have
such amount to its credit which may be received the second year of the bien-
nium providing all requirements are met. Any funds not qualified for during
each biennium are lost to the county.
Funds received under this act are solely for construction and recon-
struction of schools in accordance with the priority of needs based on a
survey and approved by the State Board. Classroom facilities have first
priority in all cases. Funds may be invested, as provided by law, until
they can be utilized, as required by this act. All funds and the interest
earned by such investments must be expended for no purpose other than
construction or reconstruction.
RACING COMMISSION FUNDS
Legal Authorization.--Sec. 550.14, Florida Statutes and Special Acts of the
Requirements for participation.--Money accruing to each county board of
public instruction under this section must be earmarked by local or special
law for distribution to the board of public instruction or allocated by
resolution of the board of county commissioners.
Distribution plan.--$7,665,000. Funds under this section are distributed in
equal amounts to each county and are paid to the board of county commissioners
except in cases where there is a local or special law providing that a defi-
nite portion of such monies shall be paid directly to the board of public
instruction in that county. Some local and special laws earmark a definite
proportion of the funds distributed to the board of county commissioners for
remittance to the board of public instruction. Each board of county commis-
sioners may by resolution apportion all or any part of funds received, which
are not earmarked by local or special law for other county purposes, to the
board of public instruction to be used for payment of teachers' salaries or
for pupil transportation expenses. During 1965-66, Racing Commission Funds
for distribution to the 67 counties are estimated at $17,500,000 of which
an estimated $7,665,000 will be used for the public schools.
STATE TEXTBOOK FUND
Legal Authorization.--Sec. 233.01-233.48, Florida Statutes.
Requirements for participation.--Counties are required to file reports annu-
ally and are required to submit necessary requisitions.
Distribution plan.--$6,224,746. This fund is allocated, but not distributed,
to the county school systems in accordance with a formula based on the number
of pupils enrolled in each grade except kindergarten and junior college. All
textbook purchases are made by State contract. Counties file requisitions
for the books needed. An initial allocation is made in the spring and a
supplementary allocation is made in the fall based on membership at the end
of the first month of the school year. This fund is available for use at
the beginning of the fiscal year and is used during the year as requisitions
are filed to provide free textbooks for pupils in the public schools of the
State in grades 1-12.
JUNIOR COLLEGE CONSTRUCTION FUND
Legal Authorization.--Art. XII, Sec. 19, Constitution of the State of Florida
and implementing legislation each biennium authorizing projects.
Requirements for participation.--The county board or boards financing the
junior college must have approval of the State Board to establish a junior
Before funds available for junior college construction are released,
the following requirements must be met. A survey must be made under the
supervision of the State Department of Education to establish the needs for
junior college facilities. A description of the proposed projects based on
the survey must be submitted to the State Superintendent for review. The
proposed building program, along with recommendations of the State Superin-
tendent, must then be submitted to the State Board for approval. Upon
request of the county board after proper budget procedure and approval of
plans and specifications, disbursements are made monthly to meet construction
Distribution plan.--$16,650,000. (Authorization for the two years, 1965-67,
is $37,000,000.) Support for the Junior College Construction Fund is
provided through a Constitutional amendment effective January 1, 1964, which
guarantees for fifty years the proceeds of revenues derived from the utili-
ties gross receipts taxes. The State Board has authority to issue bonds for
which payment of principal and interest is pledged from all or any part of
the revenue derived from the utilities gross receipts taxes. Funds derived
from the utilities gross receipts taxes, interest earnings, and proceeds of
bonds pledging such funds for payment are for capital outlay projects author-
ized by the legislature for institutions of higher learning, junior colleges
and vocational-technical schools. The county board of each county in which
a junior college is located receives money within the amount, and to be used,
as specified by the State Legislature. The amount of the request to the
Legislature is determined by a formula designed to provide 148 gross square
feet of space for each equivalent full-time student enrolled in each separate
junior college up to 2,000 ADA and 104 square feet per equivalent full-time
student thereafter; and 104 gross square feet of space for each equivalent
full-time student enrolled in a junior college sharing facilities with a
VOCATIONAL-TECHNICAL CENTER CONSTRUCTION FUND
Legal Authorization,--Art. XII, Sec. 19, Constitution of the State of Florida
implementing legislation each biennium authorizing projects.,
Requirements for participation.--A county board or county boards of contiguous
counties must have approval of the State Board to organize, establish and
operate an area vocational-technical center or acquire and operate a vocational-
technical school previously established
Distribution plan.--$4,000,000, (Authorization for the two years, 1965-67,
is $8,000,000.) Support for this program is provided through a Constitutional
amendment effective January 1i 1964, which guarantees for fifty years the pro-
ceeds of revenues derived from the utilities gross receipts taxes. The State
Board has authority to issue bonds for which payment of principal and interest
is pledged from all or any part of the revenue derived from the utilities
gross receipts taxes. Funds derived from the utilities gross receipts taxes,
interest earnings, and proceeds of bonds pledging such funds for payment are
for capital outlay projects authorized by the Legislature for institutions
of higher learning, junior colleges and vocational-technical schools. The
county board of each county designated by the State Board for location of an
area vocational-technical center, not included as a part of the program of
a junior college, after formal request of the county board and approval of
the State Board and the State Budget Commission is allocated funds, not
exceeding $500,000 for any one center, for providing capital outlay facilities
and equipment. Resolutions by each county board are necessary when two or
more counties wish to cooperate in the establishment of an area school. Any
area vocational-technical center to be established must comply with criteria
established by the State Board for Vocational Education and the law and such
criteria must not require more than 150 full-time equivalent students for
establishing a new vocational-technical training center.
PUBLIC SCHOOL DRIVER EDUCATION FUND
Legal Authorization.--Sec. 233.063, Florida Statutes.
Requirements for participation.--All secondary schools are required to pro-
vide a course of study and instruction in the safe and lawful operation of
a motor vehicle. The course of study and the employment of instructors must
be administered in accordance with regulations of the State Board.
Distribution plan.--$1,708,505. Funds are distributed, within limits of the
appropriation, for driver education expenditures. Each county is entitled
to one driver education unit, or proportionate fraction, for courses in which
each of 125 pupils is provided a minimum of 30 hours of classroom instruc-
tion and an average minimum of 6 hours actual driving experience exclusive
of observation time in the practice driving vehicle.
For each driver education unit earned, the county is apportioned for
teachers' salaries, an amount equal to the unit value provided in the founda-
tion program for salaries according to the rank and contract status of the
instructor, or salary actually paid, whichever is smaller; and for current
expense, up to $700 per driver education unit. Funds computed on attendance
data for each semester are distributed to counties after the close of that
semester as soon as final reports have been submitted and approved.
If the cost of units requested exceeds the funds available, each unit
shall receive a pro rata share of available funds. The appropriation for
this purpose is made from the general revenue fund and the total amount
expended may not exceed the total amount collected from the 50-cents annual
fee added for this purpose to the driver's license fee. Any balance at the
close of the biennium reverts to the general revenue fund.
SCHOOL LUNCH SALARY SUPPLEMENT
Legal Authorization.--Sec. 236.75, Florida Statutes.
Requirements for participation.--Funds allocated are to be used by county
boards solely for the purpose of increasing the salary rate or rates for
school level school lunch employees over and above rates paid prior to
July 1, 1965 in school board operated and controlled, nonprofit, school
Distribution plan.--$1,300,000. Funds are distributed, within limits of the
appropriation, for school board operated and controlled, nonprofit, school
lunch programs. The allotment for each county is the aggregate number of
"Type A" lunches served during the preceding month multiplyed by one cent.
"Type A lunch" means a lunch which contains as a minimum: one-half pint of
milk; two ounces of protein rich food; three-fourths cup fruits or vegetables;
a serving of bread and two teaspoons butter or margarine. By the 25th of each
month the State Superintendent computes the allotment for each county for
the preceding month and certifies the amount to the Comptroller. If funds
appropriated are not sufficient to pay requirements in full the available
funds are prorated.
STATE PERMANENT SCHOOL FUND
Legal Authorization.--Art. XII, Secs. 4, 5, and 7, Constitution of the State
Requirements for participation.--Districts must operate public schools.
Distribution plan.--$1,100,000. This fund is the interest earned on invest-
ments of the principal of the State School Fund. It is distributed to local
school districts as a part of the State Foundation Program Fund and is not
PROVISIONS FOR RAISING SCHOOL REVENUE
Assessed valuations are established by county tax assessors who are
elected by popular vote in each county. Counties have their own equaliza-
tion boards with authority to change individual assessments on appeal. The
State Comptroller examines assessments for disparities or errors. A 1941
State law makes declaration and assessment mandatory at 100 percent of true
value but no State authority exists to insure uniformity among the 67
Each county board of public instruction must, in accordance with the
Constitution, levy a minimum of three mills on the total non-exempt assessed
valuation of the county for support and maintenance of schools and is auth-
orized to levy up to ten mills. This is called the County Current Millage
and is levied by the county board without a vote of the people. The levy
is usually made for general purposes but up to two mills may be set aside
as a special reserve earmarked for capital outlay purposes.
The qualified electors who pay a tax on real or personal property in
the county vote biennially in the county-wide district to determine the dis-
trict current millage. This levy, which cannot exceed ten mills, is on the
total non-exempt assessed valuation of the county. Tax funds from this levy
are for the support and maintenance of schools, and augment the county
revenue described above. County school systems have no non-property taxes.
District millage levies for debt service created by virtue of bond
issues are set by the county board under the advisory supervision of the
State Superintendent according to need for servicing the issues. Millage
levies for debt service are unlimited by law, however, State Board regula-
tions limit such levies to six mills except with specific board approval.
Millage levied for debt service is in addition to the Constitutional 20-
mill maximum for current school operation.
All but three of the county school boards, where approval by a county
budget commission is required by special legislative act, are virtually
independent fiscally, Approximately 23 percent of the pupil enrollment of
the State is in these fiscally dependent districts.
PROVISIONS FOR SCHOOL INDEBTEDNESS
INITIATING BOND ISSUES
The proposal for issuing bonds is initiated by a petition signed by
not less than 25 percent of duly qualified electors of a county who are
freeholders. This petition may be waived in counties of 25,000 population
or more, whereupon the county board of public instruction or the trustees
or both bodies may initiate the proposal for issuing bonds.
LIMITATIONS ON ISSUANCE OF BONDS
Serial bonds are required and they must be retired over a maximum of 20
years unless a longer period is specifically approved by the State Board.
LIMITATIONS ON DEBT
The Constitution permits the issuance of school bonds in amounts which,
together with existing school bonded indebtedness, do not exceed 20 percent
of the non-exempt assessed valuation of the district. However, State Board
regulations limit the amount of school bonded indebtedness to 10 percent of
the non-exempt assessed valuation of the district except with specific
approval of the State Board.
Proposed bond issues must be approved in a special election. However,
such special, bond election may be held at the same time and place as a
general election. A proposed bond issue is approved only when (a) a majority
of all qualified electors who are freeholders cast a ballot, and (b) when a
majority of the ballots cast are in favor of the issue.
APPROVAL AND SALE OF BONDS
All applications for bond issues are checked by the State Department of
Education prior to the validation proceedings for the bond issue to assure
that the debt limit will not be exceeded and that the schedule of maturities
has been properly prepared. Annual payments required for all indebtedness
must be approximately equal. The district must show that the amount proposed
is needed for the proposed project and cannot be provided in any other manner.
The proposal for a bond issue must be approved by the State Superintendent
before the county board approves any petition of the special tax school dis-
trict for a bond issue.
The State Department of Education, on request, provides assistance of
an advisory nature, on matters relating to the sale of such bonds. Bonds are
frequently sold on a yield basis, although a fixed interest basis is permitted
by law. Bonds need not be offered to a State agency. If the interest exceeds
2.99 percent, bonds are required to be callable after 10 years. Proceeds
from bond sales may be invested when their use is not immediately required.
Any interest earned on such investments must be used in the same way as the
proceeds from sale of the bonds.
BOND RECORDS. TAX LEVIES. AND PAYMENTS
The county school board keeps all school district bond records, is res-
ponsible for repayment of the bonds, and is required to certify to the board
of county commissioners the necessary levies to retire the bonds.
Levies for debt service are in addition to the 20-mill Constitutional
limit on the non-exempt assessed valuation of taxable property for current
school expenditures. Such levies must be of sufficient amount to cover the
cost for debt service. The millage levy required to service all outstanding
bonds may not exceed six mills except with specific approval of the State
By statute, county boards may borrow up to 80 percent of the revenue
anticipated from county or district taxes at a rate of interest not exceeding
6 percent per annum as a current loan repayable in the same fiscal year. If
at any time any current indebtedness is incurred which cannot be repaid during
the year because anticipated revenues are less than the amount budgeted, such
indebtedness becomes a prior claim to funds for the next year. In the event
the county tax roll is in litigation and the tax collector is prevented from
collecting taxes, the 80 percent restriction does not apply if the collection
of taxes is delayed beyond May 1. Under such conditions the county board
also has authority to borrow money at a rate not to exceed 6 percent per
annum to pay debt service necessary for the outstanding bonds at the times
needed to prevent the bonds or interest payments from being in default.
The amount borrowed is limited to the amount of the district interest and
sinking fund tax receipts included in the official budget or the amount
necessary to meet such obligations, whichever is lesser. Any money
borrowed for payment of such debt service must be repaid from the dis-
trict interest and sinking fund.
Loans for capital outlay purposes (Section 237.27, Florida Statutes)
may be incurred for a period of one year only; however, any such obligation
may be extended from year to year with the consent of the lender for a
period not to exceed four years. The rate of interest on such loans may
not exceed 6 percent per annum. Such loans must be approved by the State
Board and the amount of such loans at any time may not exceed 25 percent
of local tax revenues received in the previous year. The State Board, by
law, cannot approve more than two such loans for any county during any one
year. Funds required for payment of such obligations maturing during the
year are required by law to be budgeted from current revenue during the
period of the loan.
PROVISIONS FOR SCHOOL BUDGETS
Budget forms for all school systems are prescribed by the State Board
and provided by the State. Counties may, however, use any supplementary
forms they find desirable. The school fiscal year in all county school
systems covers the period from July 1 through June 30.
School budgets are prepared by the county superintendent and submitted
to the county board on or before July 15. Before final approval can be made,
the county board must have a summary of the tentatively approved budget and
the proposed millage levies advertised. The advertisement of the budget
must include the date, before August 1, on which a public hearing will be
held concerning the tentatively approved budget. Tax levies for school pur-
poses, as certified by the county school boards, must be made by the board
of county commissioners provided they are within Constitutional limits.
In three of the 67 counties, approval of a county budget commission is
required by local legislative act but this is not necessary in the other
counties. In counties having a county budget commission, this body deter-
mines the tax levies for school purposes which will be certified to the
board of county commissioners. The county commissioners consolidate all
tax levies for all taxing agencies within the county and certify all
millages to the county tax collector.
STATE REVIEW AND APPROVAL
On or before August 1 of each year, each county's annual school budget
is required by law to be submitted to the State Superintendent for approval.
The State Board prescribes all necessary regulations to guide the State
Superintendent in examining budgets submitted by the county boards. The
State Superintendent has authority to require budgets to be revised only
when they have not been correctly prepared; that is, when the proper forms
have not been used, the estimates are incorrect, budgets are out of balance,
proposed expenditures are illegal, or when tax levies proposed are not
adequate to assure the proper maintenance and support of the public schools
as prescribed by law.
If the tax levy proposed is not adequate, the State Superintendent
certifies the levy which is required, provided such levy does not exceed ten
mills which is the maximum authorized by the Constitution, for the county
tax levy to the county board. The county board must amend its proposed
budget and require the proper levy to be made in accordance with the direction
of the State Superintendent. The State Superintendent may recommend addi-
tional changes in budgets but has no authority to require such changes
except where expenditures of funds received from State sources are concerned.
Severe penalties are prescribed for the county board officials who authorize
expenditures exceeding the appropriations in the official budget or who
authorize illegal expenditures of public school funds.
PROVISIONS FOR SCHOOL AUDITS
School audits for all county school systems are made annually after the
close of the fiscal year by the State Auditing Department. There is no
charge made against the school systems for making these audits.4 A W i n l:
St1-~-. ...- --'--. T Any illegal expenditure or expenditures in
excess of appropriations in the official budget found as a' result of an
audit, must be reported to the Comptroller, who, after verification, cites
the facts to the Attorney General, who institutes proceedings against the
county superintendent, board member, or members as the case may be. Local
school officials are subject to removal from office by the Governor for
violation of the law and are personally liable for any amounts improperly