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Group Title: Research report
Title: Florida public school finance program
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 Material Information
Title: Florida public school finance program
Series Title: Research report
Physical Description: v. : ; 28 cm.
Language: English
Creator: Florida -- Dept. of Education
Publisher: Dept. of Education,
Dept. of Education
Place of Publication: Tallahassee Fla
Publication Date: 1968-1969
Frequency: annual
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Subject: Education -- Finance -- Periodicals -- Florida   ( lcsh )
Genre: government publication (state, provincial, terriorial, dependent)   ( marcgt )
statistics   ( marcgt )
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Issuing Body: Issued by the Division of Elementary and Secondary Education, Bureau of Research.
General Note: Description based on: 1971/72 report; title from cover.
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Volume ID: VID00003
Source Institution: University of Florida
Holding Location: University of Florida
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Full Text


SResearch
DIVISION OF RESEARCH Report

REPORT 66

tti

Florida
Public School
Finance
Program

1968 69





September STATE DEPARTMENT OF EDUCATION
1968 TALLAHANSAe. PLORIDA
1968 FLOYD T. CHRISTIAN, se. a upr sueaMtndne
*^ ;j-y
































Research Report 66 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, Research Associate. This report
revises Research Report 48. (900)












CONTENTS
Page
Introduction . . . . .. . . 1

Selected Program Facts ................ .. 2

State Support . . . . .. . . 2
Local Support . . .. . . . . 3

Summary of State Distributions . . . . . . 3

Description of State Distributions . . . . . 3

State Minimum Foundation Program Fund, K-12 . . 5
State Junior College Minimum Foundation Program Fund. 15
County Capital Outlay and Debt Service School Fund. . 18
County School Sales Tax Trust Fund.. . . . . 20
County School Additional Capital Outlay Trust Fund. . 21
Racing Commission Funds. . . . . . . . 22
State Textbook Fund. . . . . . . . . . 23
Junior College Construction Fund . . . . . .. 24
Vocational-Technical Center Construction Fund . . 26
Vocational-Technical and Adult Education, Special Post-
Secondary Fund . . . . . . . . . . 27
Exceptional Child Education Equipment Fund. . . . 28
Exceptional Child Education Facilities Fund . . 28
Public School Driver Education Fund. . . . . 29
State Permanent School Fund .. . . . . . 30

Provisions for Federal School Revenue. .. . .... 31

Provisions for Local School Revenue.. . .. . 32

Property Assessments. . . . . . . . .. 32
Millage Levies. . . . . . . . 32

Provisions for School Indebtedness . . . . . . . 34

Initiating Bond Issues. . . . . . . . . 34
Limitations on Issuance of Bonds . . . . . . 34
Limitations on Debt . . . . . ... .... 34
Voting Requirements .. .. ............ 34
Approval and Sale of Bonds. . . . . . . . 35
Bond Records, Tax Levies, and Payments. . . . . 35
Short-Term Indebtedness . ........ 36


iii












Page

Provisions For School Budgets......... . . . ... 37

Budget Forms ....... ... ...... . . 37
Local Approval. .. ............ ..... 37
State Review and Approval ... ........ ..... 38

Provisions for School Audits . . . . . . . 39












INTRODUCTION


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 effort has been made to present Florida's state

program in a clear, orderly manner and to avoid legal and technical language

when possible. Still, it does not make for light reading. It should be

recognized that any program involving $703 million in state funds alone

must be detailed in application and complicated 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 appropriated amounts for the 1968-69 school year are

shown for each fund. These amounts are intended to serve only as a general

indication of the magnitude of each distribution, The primary consideration

is the "how" of the state program for financing public schools. Practically

all state funds are allocated to the counties on the basis of formulas

written into state law and funds, if not "earned" by the counties on the

basis of pupils or teacher units, remain in the State Treasury.


-1-







SELECTED PROGRAM FACTS


STATE SUPPORT

Funds for state grants to county school systems are provided mainly
by Legislative appropriations. Approximately eight percent is obtained
from constitutionally earmarked sources. Less than one percent is from
permanent school endowments.

About 78 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.

Allowances in the State Foundation Program include amounts for salaries
of instructional personnel, pupil transportation, other current expense,
education improvement expense, and capital outlay and debt service. County
School Sales Tax Trust Fund distributions are for the purpose of providing
necessary funds for meeting retirement matching requirements.

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 $7,700, 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 $5,300. Other K-12 Foundation Program allowances include
funds for transportation, $1,050 per instruction unit for other current
expense, $1,720 per unit for education improvement 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 $3,900 to $6,700 based on college preparation,
experience, and contractual status. Other Junior College Foundation Program
allowances include $1,250 per transportation unit, $1,550 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. Four other state funds, which account for over nine percent
of the total state distribution, also provide assistance for school facilities.
State sources provide essentially the total construction cost of junior college
facilities.

Sales tax receipts provide $500 per instruction unit for the County
School Sales Tax Fund. Driver's license funds provide partial support for
the public school driver education program.

Other state distributions for schools include the State Textbook Fund,
Vocational-Technical and Adult Education Special Post-Secondary Fund, and the
Exceptional Child Education Equipment Fund. Racing Commission Funds are
distributed to some county school boards under special or local acts or by
the boards of county commissioners.


-2-








LOCAL SUPPORT

Local revenue for school support is derived almost wholly from real
and personal property taxes. There are no local non-property taxes levied
specifically for schools. All 67 school districts 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 up to an additional ten mills. Twenty mills is the Constitutional
maximum school millage that may be levied for operation and maintenance;
however, by Statute each county participating in the State Foundation Pro-
gram is limited to a ten mill levy for operation and maintenance, exclusive
of the millage required for junior college minimum effort and millage
necessary to replace any decrease from the previous year's Federal Impact
funds.

The amount of school revenue to be provided by each county for parti-
cipation in the State Foundation Program for grades 1-12 is determined by
multiplying the county's index of taxpaying ability by 95 percent of the
calculated yield of a three mill levy on the aggregate non-exempt assessed
valuation of the state. Counties operating kindergartens add five percent
to the local required effort for grades 1-12, or $3,000 per kindergarten
unit approved, whichever is less. The amount to be provided by each county
that operates or participates in the support of a junior college is deter-
mined by multiplying the county's index of taxpaying ability by five
percent of 95 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 with specific State Board approval.

Tax levies for debt service are in addition to the Constitutional
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 esti-
mated amount of each state aid fund for 1968-69 and the percent that
each fund represents of the estimated total state distribution are shown
to give a general indication of the extent of each distribution.


-3-







SUMMARY OF STATE DISTRIBUTIONS


Est. State Aid, 1968-69
Distribution Amount Percent Basis of Distribution


Est. Total School Grants


$703,821,302


1. Minimum Foundation
Program, K-12 487,342,010

2. Minimum Foundation
Program, Junior College 64,878,772



3. County Capital Outlay and
Debt Service Program
(Grades K-12 and Junior
College) 26,825,000

4. County School Sales Tax
Trust Fund (Grades K-JC) 35,273,500

5. County School Additional
Capital Outlay Trust
Fund (Grades 1-12) 33,004,900

6. Racing Commission Funds
(Grades K-JC) 10,400,000

7. State Textbook Fund
(Grades 1-12) 9,601,281

8. Vocational-Technical and
Adult Education Special
Post-Secondary Fund 1,218,000

9. Exceptional Child Educa-
tion Equipment Fund 1,517,320

10. Exceptional Child Education
Facilities Fund 2,500,000

11. Junior College Construc-
tion Fund 25,367,635

12. Vocational-Technical
Center Construction Fund 3,968,406

13. Public School Driver
Education Fund 1,924,478

14. State Permanent School
Fund (1,300,000)


69.2


9.2






3.8


5.0



4.7


1.5


1.4


Foundation Program minus
local share; based on in-
struction units determined
by average daily attendance
(ADA) and transportation
determined by pupil density,
pupils transported, and
miles traveled



$400 per instruction unit


$500 per instruction unit



$800 per pupil increase in ADA

Special or local acts of the
Legislature


Number of pupils enrolled


Plan of operation approved by
State Board for Vocational
.2 Education


.2 $750 per exceptional child unit

Program need as approved by
.3 State Board


3,6


Legislative authorization
based on formula


Legislative authorization based
.6 on number of pupils served

Driver Education units based
.3 on pupils instructed


(.2)


Distributed as a part of
State Foundation Program Fund


-4-


100.0%







DESCRIPTION OF STATE DISTRIBUTIONS


STATE MINIMUM FOUNDATION PROGRAM FUND, 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 (MFP), all county 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 instruc-

tion; (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 $5,300 for each member of the instructional

staff holding a regular certificate and additional yearly increments to

provide for at least fifteen 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 foundation

program; (i) nominate and elect a five-member county board, unless a larger

county board is provided for by special legislative act; (j) have only one

county-wide school district in the county; (k) levy no more than ten mills.

of tax on the non-exempt assessed valuation of the county, exclusive of

district millage voted for capital outlay purposes, millage for required

debt service, millage required for junior college minimum effort, and

millage to the extent necessary to replace any decrease from the previous

year's Federal Impact funds (P.L. 874).

-5-








Distribution plan,--$487,342,010. The cost of the Minimum Foundation Program

for each county is made up of the computed cost for instructional salaries,

transportation, current expenses other than instructional salaries and trans-

portation, and education improvement expense.

The amount to be provided by each county toward the cost of the Minimum

Foundation Program, for grades 1-12, is determined by multiplying each county's

index of taxpaying ability by the calculated yield of three mills of tax on

ninety-five percent of the non-exempt assessed valuation of the state for

the preceding calendar year.

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 or $3,000 per kindergarten unit approved, whichever is

less. The required county effort for K-12 for 1968-69 is $84,225,796. 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 funds to be apportioned to each county for the

foundation program is found by subtracting from the objectively determined

cost of the Minimum Foundation 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,
-6-




/


transportation, current expense other than instructional salaries and

transportation, education improvement expense, and recalculation funds.

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. In 1968-69 the

divisor for the ADA of first grade pupils is two less than the divisor for

the ADA of pupils in grades 2-12 in all schools with an ADA of 90 or more

pupils the preceding year. 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 preceding four years in that county, the average ratio

between the ADA and the ADM in that county for the highest two of the pre-

ceding four years is used as the basis for calculating the total number of

instruction units for instructional personnel in the county. Units pro-

vided 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


-7-







of ten or more exceptional children taught by a properly qualified full-time

teacher of exceptional children as a special class or taught individually as

home bound or hospitalized children unable to attend school for the main

portion of a year; one unit for each properly qualified member of the instruc-

tional staff devoting full time to instruction of exceptional children from

regular classes; one unit for each full-time qualified teacher of ten or more

exceptional children between three and five years of age for whom professional

determination has been made that such programs are required to prepare the

child for entrance into special classes or schools; and one unit for each

900 instruction hours provided by a properly qualified teacher or teachers

for pupils unable to attend school because of being home bound or hospitalized,

a proportionate part of a unit for less than 900 instruction hours; (2) one

unit for each qualified full-time vocational teacher employed to provided

instructional services approved under regulations of the State Board; provided,

the ADA in the vocational program of the school is not less than one-half

the ADA used in calculating the number of average daily attendance instruction

units, a proportionate part of a unit when the ADA is less than the minimum

required; one unit or a proportionate part of an instruction unit is allowed

for each additional qualified vocational teacher employed to provide instruc-

tional services on a full-time, part-time or short-time basis for a full school

day, a full school year, or proportionate parts thereof; provided the ADA in

the vocational program of the school is not less than ten; (3) one unit for

each qualified adult education teacher other than vocational education employed

full-time for a class or course with an ADA of not less than fifteen; a pro-

portionate part of an instruction unit for a teacher of part-time or short-

unit classes of less than a full school day or full school year, 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








in a county when teachers are employed full-time and each teacher is

responsible for one group of pupils for a full school day, except one unit

may be allocated for each class of twenty or more pupils in ADA in isolated

schools; or one unit for each 40 pupils in kindergartens in a county when

teachers are employed full-time and each teacher is responsible for two

groups of pupils, one in the morning and one in the afternoon.

For each eight of the above units, one special teacher services (STS)

unit is allowed when used in accordance with regulations of the State

Board.

To the foregoing, units for supervisors of instruction are allocated,

if used, as follows: one supervisory unit for a general supervisor of

instruction for the first 100 instruction units or fraction thereof; and

one additional supervisory unit for each additional 100 units or fraction

thereof.

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 $7,700; a sixth year of college study at the post-

master's level at a standard institution of higher learning, in a program

planned by the institution of higher learning consisting of a planned

sequence of at least thirty semester hours of graduate credit (Rank IA) by

$7,000; an earned master's degree (Rank II) by $6,300; an earned bachelor's

degree (Rank III) by $5,300; three to three and nine-tenths years of college

training (Rank IV) by $3,000; two to two and nine-tenths years of college

-9-








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 additional $400 is added to the

value of each instruction unit sustained by instructional personnel in Rank

III or above who hold a continuing contract; another additional $400 is added

if such instructional person has completed seven years of efficient teaching

service in Florida public schools; another additional $400 is added if such

instructional person has completed ten years of efficient teaching service

in Florida public schools; and an additional $600 is added if such instruc-

tional person has completed fifteen years of efficient teaching service in

Florida public schools. The amounts included for salaries of supervisors,

special teacher service personnel, vocational and adult education teachers

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 in Rank III or above must be paid at least ninety percent of the

salary allotment for the rank and contract status of that teacher or $5,300

whichever is greater. The amount paid for salaries must be at least equal

to the amount included in the MFP for instructional salaries.

The allocation for transportation for pupils in grades K-12 transported

to public schools is determined by (1) the number of pupils in ADA trans-

ported the preceding year at public expense to schools in the county whose

homes are two or more miles from the nearest appropriate school, except

the mileage limitation does not apply to physically handicapped; (2) the

adjusted one-way miles in the morning traveled by school transportation

vehicles operated at public expense; and (3) a density index. Adjusted

one-way miles in the morning are determined for each county by adding (1) the

loaded one-way miles in the morning of school bus routes designated in
-10-




R. J


accordance with law. served by a bus having a seating capacity in excess

of eighteen linear feet and one-half the loaded miles in the morning of

each school bus route served by a bus having a seating capacity of eighteen

linear feet or less, except for miles traveled on a side route to pick up

children living within one and one-half miles of the trunk route; (2)

fifty percent of the one-way miles traveled without pupils in the morning

on such school bus route; and (3) ten percent of the one-way miles in the

morning traveled on such school bus route on unpaved or unimproved roads.

The density index for each county is determined by dividing the ADA of pupils

transported, less physically handicapped pupils transported on buses used

exclusively for such pupils, by the adjusted one-way miles of vehicular

travel.

The amount included for transportation is determined by multiplying

the average daily attendance of transported pupils, the preceding year,

grades K-12, by the allowance per pupil determined by the density index

of the county, which varies from $10 per pupil in counties having a density

index of 6.00 or more to $20 per pupil for a density index of 1.49 or less,

and by multiplying the adjusted one-way miles traveled by the allowance

per adjusted bus mile determined by the density index of the county, which

varies from $61.20 per mile in counties having a density index of 6.00 or

more to $43.20 per mile for a density index of 1.49 or less.

For each vehicle used exclusively for transporting ten or more

physically handicapped pupils in ADA to a public school, $1,250 is allowed

in lieu of the allowance for ADA. A proportionate amount is allowed for

less than ten but not less than four such transported pupils.

In unusual cases, involving a small number of children living in

sparsely settled areas, an annual allocation of $21.60 per mile is allowed

for miles traveled by passenger cars one way in the morning with pupils.

-11-









The amount included for transportation for pupils who are enrolled in

and transported at public expense to vocational-technical centers designated

by the State Board for Vocational Education to serve the area is $1,250 for

each 30 pupils in ADA who live two miles or more from school (1) when the

vocational-technical center is operated as a separate school center and

pupils attending from the county of location are assigned primarily to the

center, and (2) when pupils are transported to the vocational-technical

center from a cooperating county for instruction primarily in the vocational-

technical program. A proportionate amount is allowed for less than 30 such

transported pupils. Vehicular miles traveled by such buses are not included

in the adjusted miles used in determining the allowance for K-12 pupil

transportation. Additional transportation funds are allowed for pupils

enrolled primarily in a school center providing basic education, who during

the school day are transported to or from such center for a distance of two

or more miles to a vocational-technical center designated for the area and

located within the same county, and who are in attendance at such vocational-

technical center. For each 50 such pupils in ADA transported, 20 cents per

mile is allowed for the miles traveled between the two schools by the nearest

traveled road. A proportionate amount is allowed for less than 50 such

pupils transported.

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 $1,050. Of this amount $100 per

instruction unit is designated for the purchase of instructional materials.

The amount included for education improvement expense is determined by

multiplying the total number of instruction units by $1,720. This amount

must be used by each county board for improving the quality of the educa-

tional program based on an approved plan of utilization and implementation.
-12-







Each county board must develop a long-range systematic program of action

for meeting its educational needs which incorporates a priority of the

use of education improvement expense funds. In developing the plan

for educational improvements each county board is required to give the

highest priority of need to the area of staff development. Prior to

July 1 each county board must present to the state superintendent for a

review and approval a plan for educational improvements to be accomplished

that year which are in accord with the long-range objectives. The state

superintendent is prohibited from approving any plan failing to give the

highest priority to the area of staff development. If a county's plan

is not approved prior to August 31, these funds must be placed in an

earmarked reserve until the plan for improvement of education has been

approved by the state superintendent. If the plan is not approved by

February 1, the county forfeits its right to the education improvement

expense funds and the amount of such funds distributed to the county is

withheld from the remaining distributions of state funds to the county.

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 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 one percent. 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 for the previous 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


-13-








current expense, education improvement 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 pro-

gram.

Effective July 1, 1968, any county desiring to participate in the K-12

Minimum Foundation Program is by statute limited to a tax levy of ten mills

for county current millage and district current millage combined, exclusive

of district millage voted for capital outlay purposes, millage for required

debt service, millage required for junior college minimum effort and millage

to the extent necessary to replace any decrease from the previous year in

funds from PL 874 (Federal Impact funds). If this limitation creates a

condition in any county such that the 1968-69 current operating budget from

state funds for K-12 Minimum Foundation Program, state funds for county

school sales tax trust fund, and county tax sources exclusive of the amount

collected from millage levied for capital outlay purposes, required debt

service and juniorcollege minimum required effort cannot exceed its 1967-68

current operating budget by at least $1,200 per instruction unit, the alloca-

tion of state minimum foundation program funds must be increased to the

extent necessary to provide a $1,200 increase per instruction unit in its

1968-69 operating budget.

Funds for salaries, transportation, other current expense, and education

improvement expense are distributed to the respective counties in twelve

approximately equal monthly payments beginning July 15 each year. Recalcula-

tion funds are distributed to the counties, 35 percent in January, 35 percent

in February, and the balance in March each year.

Each state university which operates a laboratory school as part of its

teacher preparation program receives all state funds per pupil as is computed

for the county in which the university is located. Payments are made directly

-14-







to the university and are in lieu of payments of state funds to the

county board of public instruction for the operation of such school.


STATE JUNIOR COLLEGE MINIMUM FOUNDATION PROGRAM FUND

Legal Authorization.--Sec. 230.0111-230.0117, Florida Statutes.

Requirements for participation.--In order to participate in the state

appropriation for the Junior College Minimum Foundation Program a

county 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.--$64,878,772. The cost of the Junior College Founda-

tion Program for each junior college is made up of the computed cost for

instructional salaries, transportation, and current expense other than

instructional salaries and transportation.

The amount to be provided toward the cost of the Junior College

Minimum Foundation Program by each county approved by the State Board to

operate or participate 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 state.

No county or group of counties supporting a junior college can be

required to make a financial effort of more than fifty percent of the

total cost of the Minimum Foundation Program for the junior college.

For the purpose of determining the required financial effort beginning

with the 1969-70 fiscal year, the increase in the calculated yield of

six mills levied in the non-exempt assessed valuation of the state will

be limited to no more than five percent in any year.

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.

-15-








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 auto-

mobile tag registrations. The required county effort for junior college for

1968-69 is $7,668,496. The county board of each county participating in the

support of a junior college must annually appropriate to the junior college

district board of trustees an amount at least equal to the minimum required

financial effort. 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 default.

One instruction unit is allotted for each twelve students in average

daily attendance (ADA) in other than occupational programs for the first

420 students and one additional unit is allotted for each additional 15

students. One unit for each ten students in ADA in occupational programs

is allotted. One unit or proportionate fraction is allotted for administra-

tive and special instructional services for each eight instruction units

and one unit or proportionate fraction is allotted for student personnel

services for each 20 instruction units.

The amount ir3luded in the program for instructional salaries during

the regular ter, is determined by multiplying the number of units, represented

by persons hr/ding certificates based on various academic classifications,
/
by the J',ior College Minimum Foundation Program salary value of instruction

uni as follows: an earned doctor's degree (Rank I) by $6,700; an earned

/ master's degree (Rank II) by $6,100; an earned bachelor's degree (Rank III)

by $5,700; three to three and nine-tenths years of college training (Rank IV)

by $3,900. 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

-16-








has completed ten years efficient teaching service in Florida public

schools. The amount included for salaries during the regular term is

increased by three and one-half percent for administrative and special

instructional service personnel and student personnel services personnel

employed beyond the regular term. The total amount included for salaries

is increased by three percent, and beginning with the 1969-70 fiscal year

by five percent, to provide for staff and program development.

An amount for current expenses other than instructional salaries and

transportation is calculated at the rate of $1,550.for each junior college

instruction unit. For administrative expenses, including salaries, of the

first approved junior college center in each district $17,500 is added, and

$10,000 is added for each additional center approved by the State Board.

One transportation unit, or proportionate fraction, is allowed for

each 30 junior college pupils in ADA transported at public expense the pre-

ceding year to a public junior college. Pupils must live at least two

miles from the junior college. The amount for transportation is deter-

mined by multiplying the number of transportation units by $1,250.

If the ADA in any junior college for the first two months of.any

academic year is greater than the ADA in the junior college during the

first two months of the preceding academic year, the state superintendent

has authority to increase the state portion of the foundation program fund

for such junior college by the percentage of increase in average daily

attendance. State Board regulations provide that ADA for the first two

months be determined by adding the total student semester hour registration

divided by 15 and the total student attendance hours in approved non-

credit courses during the first 40 days of classes during the fall term

divided by 180. These additional amounts are known as "recalculation

funds." The total allowable cost of the Junior College Foundation Program


-17-








is determined by the total of the amounts calculated for salaries, trans-

portation, current expense, administrative expense, and recalculation funds.

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 junior college district

board of trustees in twelve approximately equal monthly payments beginning

July 1 each year and are solely for junior college expenditure. Recalculation

funds are distributed in six approximately equal monthly payments beginning

January 1 each year.


COUNTY CAPITAL OUTLAY AND DEBT SERVICE SCHOOL FUND

Legal Authorization.--Art. XII, Sec. 18, Constitution of the State of Florida,

and Sections236.03, 236.07(7) and 230.0117(5), Florida Statutes.

Requirements for participationo--Each district must earn instruction units

under the State Foundation Program.

Distribution plan.--$26,825,000. 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 guarantees

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.


-18-








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 "State

School 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 Section 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 administrative expense fund is provided by

a deduction from the County Capital Outlay and Debt Service School Fund

each year, at a percentage rate determined by the State Board, to be used

for payment of salaries of personnel and expenses of administering Section

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 service on such bonds and the invest-

ment of capital outlay funds from the County Capital Outlay and Debt Service

School Fund and proceeds of bonds issued under Section 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

-19-








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 meet debt service requirements, to provide administrative

expense of SDE and SBA, and to pay direct costs of issuing bonds. The remain-

ing 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 in September and March of each year to the

county boards separately for the K-12 school program and for the junior

college program. The law provides that funds for the junior college program

are distributed to the county board of the county of location which transfers

such funds to the junior college district board of trustees. The recalcula-

tion funds provided for the K-12 program are distributed in March each year.


COUNTY SCHOOL SALES TAX TRUST FUND

Legal Authorization.--Section 236.075, Florida Statutes.

Requirements for participation.--Each district must earn instruction units

under the state foundation program.

Distribution plan.--$35,273,500. This fund is apportioned, within limits of

the legislative appropriation, at the rate of $500 per instruction unit and

is for the purpose of providing the funds necessary to meet the required

payments to the teachers' retirement system and to the state and county

officers and employees' retirement system. The funds are distributed to the

county boards for the K-12 school program and to the junior college district


-20-








boards of trustees for the junior college program in twelve approximately

equal monthly payments beginning July 1 each year. If a county board or

junior college district board of trustees fails to make these required

payments, the state comptroller is required to deduct the amount owed from

the sales tax allocation accruing to the county or junior college and remit

it directly to the appropriate retirement fund for the credit of the county

or junior college. 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 balance in March each year.


COUNTY SCHOOL ADDITIONAL CAPITAL:OUTLAY TRUST FUND

Legal Authorization.--Section 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

twenty-five percent of the amount it seeks to obtain from the state,

Distribution plan.--$33,004,900. Each county's share of this fund-amounts

to $800 for each pupil increase in ADA in grades 1-12 for the last completed

school year over the next preceding school year. ADA for the preceding

year may never be computed for purposes of this allocation as less than the

ADA for any school year commencing with and subsequent to the 1955-56

school year. Funds are committed to the county boards after evidence is

furnished the state superintendent that an amount equal to twenty-five

percent of the amount the board seeks to obtain from the state has been


-21-







deposited in the School Construction Fund and the State Board has approved

the expenditure 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 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 biennium, unless there

is a decrease in ADA, providing all requirements are met. Any funds not

qualified for during each biennium revert to the state general revenue fund.

Funds received under this act are solely for construction and reconstruc-

tion 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 section. All funds and the interest earned

by investments of these funds must be expended for no purpose other than

construction or reconstruction.


RACING COMMISSION FUNDS

Legal Authorization.--Section 550.14, Florida Statutes, and Special or Local

Acts of the Legislature.

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.--$10,400,000. 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

definite portion of such monies shall be paid directly to the board of public


-22-








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 commissioners 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 1968-69, Racing Commission Funds for distribution to the 67 counties

are estimated at $21,800,000, of which an estimated $10,400,000 will be

used for the public schools.


STATE TEXTBOOK FUND

Legal Authorization.--Sections233.01-233.50, Florida Statutes.

. Requirements for participation.--Counties are required to file reports

annually and are required to submit necessary requisitions.

Distribution plan.--$9,601,281. This fund.is allocated, but not distribu-

ted to the county school systems. All textbook purchases are made by

state contract. Counties file requisitions for the books needed. 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.

Prior to June 1 each year, a credit in the state textbook appropria-

tion is apportioned to each county. This credit is the amount for which

counties can requisition textbooks during the school year. In determining

the annual apportionment, the average annual per pupil cost (current

average replacement cost) of textbooks for grades 1-3, 4-6, 7-9, and 10-12

is computed in each category. The replacement cost is one-fifth the computed

current inventory cost for a set of books for each student, since the


-23-








average life of a textbook is five years. Each county's allocation is

computed by multiplying the average annual per pupil cost in each category

by the latest official county enrollment figures increased by the estimated

statewide percentage increase in enrollment. The sum of the totals for

each category constitutes the county base allocation.

In the fall a supplementary allocation is made. This consists of an

adjustment to the base allocation computed on later official enrollment

figures (preceding year) and a supplement to the base allocation determined

by multiplying any increase over the previous year in the current year's

first month membership for each grade group by the inventory cost for that

grade group. Counties are also given additional credit in the textbook

allocation for losses suffered from fire (unless covered by insurance),

storm, or other causes. The superintendent reserves a sufficient portion

of the textbook appropriation to cover necessary freight charges, printing

of new publications, rebinding, large-type books for the partially sighted,

and other costs of state textbook administration. The base allocation
/
plus the supplementary allocation constitute the total textbook allocation

for each county. If funds appropriated are not sufficient to purchase all

thebooks computed as necessary for the total textbook allocation, each

county's allocation is prorated.


JUNIOR COLLEGE CONSTRUCTION FUND

Legal Authorization.--Article XII, Section 19, Constitution of the State of

Florida and implementing legislation each biennium authorizing projects.

(Chapter 67-302, Laws of Florida for 1967-69 biennium.)

Requirements for participation.--State board approval and specific legislative

authorization to establish a junior college must have been granted a .county

or group of counties.


-24-







Before funds available for junior college construction are released,

certain requirements must be met. A survey must be made under the super-

vision 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

superintendent, must then be submitted to the State Board of Education

for approval. Upon request from the junior college, after proper budget

procedure and approval of plans and specifications, disbursements are

made to meet construction requirements.

Distribution plan.--$25,367,635, (Authorization for the two years, 1967-69,

is $26,035,000.) Support for the Junior College Construction Fund is pro-

vided 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 of Education 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 out-

lay projects authorized by the Legislature for institutions of higher

learning, junior colleges, and vocational-technical schools. The junior

colleges receive money within the amount, and to be used, as specified by

the State Legislature. The amount of the request to the 1967 Legislature

was 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.


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VOCATIONAL-TECHNICAL CENTER CONSTRUCTION FUND

Legal Authorization.--Article XII, Section 19, Constitution of the State of

Florida, implementing legislation each biennium authorizing projects.

(Chapter 67-302, Laws of Florida for 1967-69 biennium.)

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. Resolutionsby each county board

are necessary when two or more counties wish to cooperate in the establish-

ment of an area school. Any area vocational-technical center to be estab-

lished 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 train-

ing center.

Before funds available for vocational-technical center construction

are released, certain requirements must be met. A survey must be made under

the supervision of the State Department of Education tp establish needs for

vocational-technical center facilities. A description of the proposed pro-

jects based on'the survey must be submitted to the state superintendent for

review. The proposed building program, along with recommendations of the

state superintendent, must then be submitted to the State Board of Education

for approval. Upon request of the county board, after proper budget pro-

cedure and approval of plans and specifications, disbursements are made to

meet construction requirements.

Distribution plan.--$3,968,406. (Authorization for the two years, 1967-69,

is $5,715,000.) Support for this program is provided through a Constitu-

tional amendment effective January 1, 1964, which guarantees for fifty

years the proceeds of revenues derived from the utilities gross receipts taxes.

-26-








The State Board of Education 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 of Education for location of an area vocational-technical

center, after formal request of the county board and approval of the State

Board and the State Budget Commission, is allocated funds within the amount

authorized by the State Legislature for that center for providing capital

outlay facilities. The amount of the request to the 1967 Legislature was

determined by establishing the number of student stations which would con-

tribute to the orderly second phase development of each area vocational-

technical center at an estimated construction cost of $1,920 per student

station.


VOCATIONAL-TECHNICAL AND ADULT EDUCATION SPECIAL POST-SECONDARY FUND

Legal. Authorization.--Section 282.93(8), Florida Statutes.

Requirements for participation,--A county must be operating a vocational-

technical or adult education program in an area vocational-technical center

or an approved post-secondary center and have a plan of operation approved

by the State Board for Vocational Education.

Distribution plan.--$1,218,000. This fund is allocated to counties

operating a vocational-technical or adult education program in an area

vocational-technical center of an approved post-secondary center to provide

for identified unmet needs based on a plan of operation and a detailed

program budget submitted to the state superintendent and approved by the


-27-








State Board for Vocational Education. These funds are in addition to the

funds provided on the basis of instruction units in the state foundation

program and are for the purpose of providing additional needed funds to

supplement operating programs in these centers. Items which may be included

in the budget approved by the State Board for Vocational Education for fund-

ing from this source include audio-visual materials and supplies, utilities,

building maintenance, replacement of obsolete or worn-out equipment, repair

of equipment, instructional materials and supplies, library books and reference

materials, and minor renovations.


EXCEPTIONAL CHILD EDUCATION EQUIPMENT FUND

Legal Authorization.--Section 282.93(11)(b)(3), Florida Statutes.

Requirements for participation.--Each county must have approved exceptional

child units under the State Minimum Foundation Program.

Distribution plan.--$1,517,320. This fund is apportioned within limits of.

the Legislative appropriation, at the rate of $750 per approved exceptional

dhild unit; however, each county will be apportioned at least $1,000. These

funds are exclusively for capital outlay expenditures for the specialized

equipment necessary for the initiation of new programs and.activities for

exceptional children enrolled in the special education program. Items of

equipment purchased must meet criteria established by the state board.

Basic classroom equipment can be purchased only for new classrooms

initiated over the previous year as determined by the increase in approved

exceptional child units. Funds are distributed on a reimbursement basis

for items included in a project plan and detailed budget approved by the

state superintendent.


EXCEPTIONAL CHILD EDUCATION FACILITIES FUND

Legal Authorization.--Section 282.93(11)(2), Florida Statutes.


-28-








Requirements of participationn--A county must have approved exceptional

child units under the State Minimum Foundation Program and approval of

the State Board.

Distribution plano--$2,500,000o This fund is allocated to selected counties

on the basis of program need as established in accordance with criteria

approved by the State Board. Funds must be used for construction of

specialized classrooms and related facilities not normally included as

part of regular school construction, where a concentration of classrooms

is required to provide a sequential program.

To be eligible the proposed facilities must meet the requirements of

all laws and regulations relating to school construction, be recommended

by the School Survey Section and approved by the School Plants Section of

the State Department of Education; the education specifications must be

approved by the Exceptional Child Section and the Division of School

Facilities of the State Department of Education; the county must agree to

use the facilities for the purposes planned unless equivalent facilities

are provided at a new site and sufficient justification is given for dis-

banding such facilities; and there is ample evidence that a quality program

can be placed in operation, with appropriate teaching personnel, materials

and supplies, supervision, and necessary transportation. Applications

submitted are reviewed by the related sections of the State Department of

Education and presented to a review committee for recommendation to the

State Board.


PUBLIC SCHOOL DRIVER EDUCATION FUND

Legal Authorizationo--Section 233o063, Florida Statutes.

Requirements for participation,--All secondary schools are required to

provide a course of study and instruction in the safe and lawful operation


-29-








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.--$1,924,478. 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 instruction 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 from all counties 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.


STATE PERMANENT SCHOOL FUND

Legal Authorization.--Article XII, Sections 4, 5, and 7, Constitution of

the State of Florida.

Requirements for participation.--Districts must operate public schools.

Distribution plan.--$1,300,000. This fund is the interest earned on investments


-30-








of the principal of the State School Fund. It is distributed to local

school districts as a part of the State Foundation Program Fund K-12 and

is not separately distributed.


PROVISIONS FOR FEDERAL SCHOOL REVENUE

The State Board of Education must approve plans for cooperating with

the federal government in carrying out any phase of the educational program

in which it finds cooperation desirable and must provide for the proper

administration of funds apportioned to the state from federal appropriations.

The State Board is responsible for prescribing regulations covering all

contracts or agreements made with federal agencies for funds, services,

commodities or equipment by tax supported schools or institutions and school

systems under its control or supervision. All funds accruing from contracts

entered into by a county board of public instruction and a federal agency,

pursuant to regulations of the State Board, must be accounted for as pre-

scribed by the State Board.

The State Superintendent is responsible for recommending ways of

cooperating with the federal government on any phase of the educational

program in which he feels cooperation desirable. It is his duty to

recommend policies for administering funds appropriated from federal

sources and apportioned to the state for any educational purpose, and

to execute or provide for the execution of all plans and policies

approved by the State Board,

Local school systems receive funds from the federal government both

directly and through the state as a distribution agency. Federal school

funds received by local school systems may be administered by various

agencies such as the Department of Labor, Veterans Administration,

Department of Interior, Department of Health, Education and Welfare,


-31-








Office of Economic Opportunity, Department of Defense, and Department of

Agriculture.

Some of the Federal Acts under which the local school systems receive

federal school revenue are:

National Defense Education Act of 1958, PL 85-864, as amended
Higher Education Facilities Act of 1963, PL 88-204
Manpower Development and Training Act of 1962, PL 87-415 as amended
Vocational Education Act of 1963--Morse-Perkins, PL 88-210
Vocational Education Act of 1946--George-Barden, PL 79-586 as amended
Vocational Education Act of 1917--Smith-Hughes, PL 64-647 as amended
Civil Defense Act, PL 81-920 as amended
Economic Opportunity Act of 1964, PL 88-452
Elementary and Secondary Education Act of 1965, PL 89-10
National School Lunch Act of 1946, PL 79-396 as amended
Veterans' Readjustment Assistance Act of 1952, PL 82-550 as amended
School Assistance (Construction) in Federally Affected Areas,
PL.81-815 as amended
School Assistance (Current Operation) in Federally Affected
Areas, PL 81-874 as amended
Civil Rights Act of 1964, PL 88-352
Federal Communications Act (ETV Facilities), PL 87-447


PROVISIONS FOR LOCAL SCHOOL REVENUE

PROPERTY ASSESSMENTS

Assessed valuations are established by county tax assessors who are

elected by popular vote in each county. The board of county commissioners

in each county serves as the board of tax equalization for the county with

authority to equalize individual assessment values fixed by the county tax

assessor. The.state comptroller examines county assessment rolls for dis-

parities or errors. State law establishes factors which are to be considered

in determining property valuation and requires all county tax assessors to

assess all property in such a manner as to secure a just valuation. County

tax assessors are required to prepare assessment rolls based on 100 percent

valuation.

MILLAGE LEVIES

Each county board of public instruction must, in accordance with the


-32-







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 authorized to levy a maximum of 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 a

maximum of two of the ten mills may be set aside, upon approval of the

state superintendent, 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 district current millage. This levy, which in accordance with the

Constitution cannot exceed ten mills, is on the total non-exempt assessed

valuation of the county. A maximum of four mills of the possible ten

may, if approved at the biennial election, be set aside in a special

reserve fund for capital outlay purposes. Tax funds from this levy are

for the support and maintenance of schools, unless set aside for capital

outlay purposes, 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 initially limit such levies to six mills except with specific board

approval. Millage levied for debt service is in addition to the Consti-

tutional maximum for current school operation.

Effective July 1, 1968, any county board desiring to participate in

the K-i2 Minimum Foundation Program is by statute limited to a tax levy

of ten mills for county current millage and district current.millage combined,

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exclusive of district millage voted for capital outlay purposes, millage

for required debt service, millage required for junior college minimum

effort and millage to the extent necessary to replace any decrease from

the previous year in funds from PL 874 (Federal Impact funds).


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. 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.


VOTING REQUIREMENTS

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 another

election. A proposed bond issue is approved only when (a) a majority of all

qualified registered electors who are freeholders cast a ballot, and (b) when


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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 district 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

responsible 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

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bonds may not exceed six mills except with specific approval of the State

Board.


HOR-TERM INDEBTEDNESS

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.

t ati ny 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.

n th 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

district interest and sinking fund.

Loans for capital outlay purposes may be incurred for a period of one

year; 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


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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

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.


LOCAL APPROVAL

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.

Junior college budgets are prepared by the junior college presidents

and recommended to the boards of trustees. Upon approval of a budget by

the board df trustees, the budget is submitted to a budget review board

composed of five members of the boards) of public instruction of the

counties participating in the support of a junior college. Budgets are

submitted to the state superintendent by August 1. If the budget review

board disapproves the budget, however, the due date is extended to August 10.

Tax levies for school purposes, as certified by the county school

boards, must be made by the board of county commissioners provided they are

within Constitutional limits. In two of the 67 counties, approval of a

county budget commission is required by local legislative act but this is


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not necessary in the other counties. In counties having a county budget

commission, this body determines the tax levies for school purposes which

will be certified to the board of county commissioners. The county commis-

sioners consolidate all tax levies for all taxing agencies within the county

and certify all millages to the county tax collector.


STATE REVIEW AN) 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

additional 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.


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PROVISIONS FOR SCHOOL AUDITS

The Legislative auditor is responsible for making an annual post-

audit of each county school system. Audits generally are made after the

close of the fiscal year. There is no charge made against the school

system for the audit. A copy of the audit report is submitted to the

Legislative Auditing Committee, the Governor, the County Superintendent

of Public Instruction, the County Board of Public Instruction, the State

Comptroller and the State Superintendent of Public Instruction. The

Legislative auditor is required to report any instances of shortages,

defalcations and irregularities disclosed by the audit to the Legislative

Auditing Committee, the Governor, and the State Comptroller. It is the

duty of the Comptroller to adjust and settle, or cause to be adjusted and

settled, all accounts and claims which the proper county authorities have

failed to adjust and settle. In some cases an account or claim may be

certified by the Comptroller to the Attorney General to be prosecuted by

him. 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 expended.


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