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Group Title: Research report
Title: Florida public school finance program
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Permanent Link: http://ufdc.ufl.edu/UF00082789/00004
 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: 1969-1970
Frequency: annual
regular
 Subjects
Subject: Education -- Finance -- Periodicals -- Florida   ( lcsh )
Genre: government publication (state, provincial, terriorial, dependent)   ( marcgt )
statistics   ( marcgt )
 Notes
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.
 Record Information
Bibliographic ID: UF00082789
Volume ID: VID00004
Source Institution: University of Florida
Holding Location: University of Florida
Rights Management: All rights reserved by the source institution and holding location.
Resource Identifier: oclc - 12589785
lccn - 72626740
 Related Items
Succeeded by: Florida education finance program.

Table of Contents
    Front Cover
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        Page ii
    Table of Contents
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Renasach Report -279 is a summary of the State
program for fin ning Florida public schpols.
prepared by-the Bureau of Research, Divisionv
of Elementary and SecowdAvy 19dication, of the
Florida' Departempt of education. Basic data
for this report weke complied b kMrie A.
lKohleri Admfinitrators Institutionkal Research.
This v*"prt revises Research Report: 66,4 (495)











CONTENTS
Page

Introduction . . .. . . . . . . . 1

Selected Program Facts . . . . . . . 2

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

Summary of State Distributions . . . . . . . 3

Description of State Distributions . . . . . 5

State Minumum 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 . .. ....... ..... ... 22
Junior College Construction Fund . . ... . . 24
Vocational-Technical Center Construction Fund . . . . 25
Exceptional Child Education Equipment Fund.'. . . . 27
Exceptional Child Education Facilities Fund . . . . 27
Public School Driver Education Fund . . . . . . 28
State School Fund . .. . . . . . . . 29

Provisions for Federal School Revenue. . . . . . . 29

Provisions for Local School Revenue. . . . . . . 31

Property Assessment . . . . . .. . 31
Millage Levies.. .. . . . . . . . . . 31

Provisions for School Indebtedness . . . . . . .. 32

Initiating Bond Issues. . . . . . . .. 32
Limitations on Issuance of Bonds. . . . .. .. . 33
Limitations on Debt . . . . 33
Voting Requirements . . . . . . . 33
Approval and Sale of Bonds. . ... . . 33
Bond Records, Tax Levies, and Payments. . . . . . 34
Short-Term Indebtedness . . . . . 34

Provisions for School Budgets. . . . . . . . . 35

Budget Forms . . . . . . . . . . 35
Local Approval .. . . . . . . . 35
State Review and Approval . . . . . . . . 36

Provisions for School Audits . .. .. . .. ... 37











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 $722 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 1969-70 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 districts on the basis of formulas

written into state law and funds; if not "earned" by the districts on the

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









SELECTED PROGRAM FACTS


STATE SUPPORT

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

About 80 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 about eight 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
and the Exceptional Child Education Equipment Fund. Racing Commission Funds
are distributed to some district school boards under special or local acts or
by the boards of county commissioners.







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.

District school boards are authorized to levy up to ten mills on the
local non-exempt assessed valuation of property for the support and
maintenance of schools, without a vote of the people. In addition, the
qualified electors who are owners of freeholds therein not wholly exempt
from taxation may vote an additional millage levy. However, by Statute
each district participating in the State Foundation Program is limited to
a ten mill levy for operation and maintenance, exclusive of the village
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 district for
participation in the State Foundation Program for grades 1-12 is equal
to 95 percent of the calculated yield of a three mill levy on the non-
exempt assessed valuation of the district. Districts 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 district that operates or participates in the
support of a junior college is equal to 95 percent of the calculated yield
of a three-tenths of a mill levy on the non-exempt assessed valuation of
the district.

State Board of Education regulations prohibit school districts from
issuing school bonds in excess of 10 percent of the non-exempt assessed
valuation of the district except with specific State Board approval.

Tax levies for debt service are in addition to the levies 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 1969-70 and the percent that
each fund represents of the estimated total state distribution are
shown to give a general indication of the extend of each distribution.










SUMMARY OF STATE DISTRIBUTIONS


Est. State Aid, 1969-70
Distribution _Amount Percent Basis of Distribution


Est. Total School Grants


$722,811,000


o1 Minimum Foundation
Program, K-12

2. Minimum Foundation
Program, Junior College




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

4. County School Sales Tax
Trust Fund (Grades K-JC)

5. County School Additional
Capital Outlay Trust
Fund (Grades 1-12)

6. Racing Commission Funds
(Grades K-JC)

7. State Textbook Fund
(Grades 1-12)

8. Exceptional Child Educa-
tion Equipment Fund


513,877,300


63,202,100







28,550,200


35,923,100



31,410,400


12,000,000


8,347,900


425,000


9. Exceptional Child Education
Facilities Fund 3,575,000

10. Junior College Construc-
tion Fund 19,000,000

11. Vocational-Technical
Center Construction Fund 4,500,000

12. Public School Driver
Education Fund 2,000,000

13. State School Fund (2,000,000)


71.1


8.7







3.9


5.0



4.3


1.7


1.2


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


$750 per new exceptional
.1 child unit

Program need as approved by
.5 State Board


Legislative authorization
based on formula


Legislative authorization based
.6 on formula

Driver Education units based
.3 on pupils instructed


(.3)


Distributed as a part of
K-12 Foundation Program


100.0%







DESCRIPTION OF STATE DISTRIBUTIONS


STATE MINIMUM FOUNDATION PROGRAM FUND. K-12

Legal Authorization.--Sec. 236.01-236.251, Florida Statutes.

Requirements for particivation.--In order to participate in the State

appropriation for the Minimum Foundation Program (MFP), all district

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 $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 district school

board, unless a larger district board is provided for by special legislative

act; (j) be a school district consisting of an entire single county, except

that two or more contiguous counties, upon a vote of the electors of each

county, may be combined into a single school district; (k) levy no more than

ten mills of tax on the non-exempt assessed valuation of the district,

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

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

-5-







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

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

Distribution plan.--$513,877,300. The cost of the Minimum Foundation Program

for each district 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 district toward the cost of the Minimum

Foundation Program, for grades 1-12, is equal to ninety-five percent of the

calculated yield of three mills of tax on one hundred percent of the non-exempt

assessed valuation of the district for the preceding calendar year.*

If the district is operating kindergartens under the foundation program,

the required local effort for grades 1-12 is increased 5 percent or $3,000 per

kindergarten unit approved, whichever is less. The required local effort for

K-12 for 1969-70 is $88,598,966. If a district fails to make the financial

effort required for participation in the foundation program, the state's share

of that district's allocation is decreased proportionately,

The amount of state funds to be apportioned to each district for the

foundation program is found by subtracting from the objectively determined

cost of the Minimum Foundation Program in each district the amount required to

be provided through local effort by such district. The amount automatically



*Chapter 69-1735, Laws of Florida (HB 990), to be effective July 1, 1970, is
now incorporated into Sections 236,07(5)(b), 236.07(9)(a) and 236,07(12),
Florida Statutes. This act provides that the auditor general, after consul-
tation with the Department of Revenue, is to determine the ratio of the
assessment roll compared to full value in each school district. Such certi-
fication is to be made no later than May 1 of each year, If the assessment
level in a district is less than one hundred percent, the required level of
contribution shall be adjusted to the equivalent of three mills on one hundred
percent assessment. The difference between three mills on actual assessment
and three mills on one hundred percent assessment is added to the $1,050
allocation for other current expense and distributed to all counties based on
the number of instruction units in the final Minimum Foundation Program.







increases, within limits set by legislative appropriation, as attendance

increases and teacher preparation improves. The total cost of the program

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

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. 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 district 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 school board of any district. When

the ratio between the total ADA and the total average daily membership (ADM)

of students in the entire district for the year is below the ratio of the

highest two of the preceding four years in that district, the average ratio

between the ADA and the ADM in that district for the highest two of the

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

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

-7-







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

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 provide'

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 a fractional part of a unit for less than 25

pupils in ADA in kindergartens in a district 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 district 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 o.tal number

of instruction units for each district 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
-9-







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 for 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 .3 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

instructional 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 total 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 district 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


-10-







in the morning are determined for each district by adding (1) the loaded
i '
one-way miles in the morning of school bus routes designated in 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 district 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 district, which varies from $10 per pupil in districts, having a density

index of 6,00 or iorebto $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 district, which

varies from $61.20 per mile in districts 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 of 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


-11-







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

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 of 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 district of location are assigned primarily to the

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

center from a cooperating district 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 district, 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 school board for improving the quality of the educa-


-12-








tional program based on an approved plan of utilization and implementation,

Each,district 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 district board is required to give the

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

July 1 each district board must present to the department of education

for review and approval a plan for educational improvements to be

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

The department of education is prohibited from approving any plan failing

to give the highest priority to the area of staff development. If a

district'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 department of education. If the plan is not

approved by February 1, the district forfeits its right to the education

improvement expense funds and the amount of such funds distributed to the

district is withheld from the remaining distributions of state funds to

the district.

If the ADA in any district for the first two months of any school

year shows an increase over the ADA in that district 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 district by

such percentage of increase. 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, education improvement expense, and recalculation funds.

From this total is subtracted the required local contribution. The balance,


-13-







or remainder, is provided by the state as its share of the cost of the program.

Any district desiring to participate in the K-12 Minimum Foundation

Program is by statute limited to the tax levy of ten mills on the non-exempt

assessed valuation of the district, 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 district

such that the 1969-70 current operating budget from state funds for K-12

Minimum Foundation Program, state funds for the school sales tax trust

fund, and local taxes for operation of K-12 of not less than ten mills,

exclusive of the amount collected from millage levied for capital outlay

purposes, required debt service and junior college minimum required effort

cannot exceed its 1967-68 current operating budget by at least $1,200 per

instruction unit, the allocation of state K-12 minimum foundation program

funds is increased to the extent necessary to provide a $1,200 increase per

instruction unit in its 1969-70 operating budget.

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

improvement expense are distributed to the respective districts in twelve

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

tion funds are distributed to the districts, 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 district in which the university is located. Payments are made directly

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

school board for the operation of such school.


-14-







STATE JUNIOR COLLEGE MINIMUM FOUNDATION PROGRAM FUND

Legal Authorization.--Sec. 230.761-230,767, Florida Statutes.

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

appropriation for the Junior College Minimum Foundation Program a

district 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.--$63,202,100. 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 district approved by the State Board

to operate or participate in the support of a junior college is

95 percent of the calculated yield of three tenths of one mill of tax

levied on the total non-exempt assessed valuation of the district.

No school district or group of school districts 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.

The required local effort for junior college for 1969-70 is

$8,199,035. The district school board of each district 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 school board which fails to

make the financial effort requiredito support the junior college is

ineligible to receive any state funds under the Minimum Foundation

Program during such period of default.


-15-






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: included in the program for instructional salaries during

the regular term is determined 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 $6,700; and earned

master's degree (Rank II) by $6,100; and 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

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

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


-16-







$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 department of

education 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 at the close of fall 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 is determined

by the total of the amounts calculated for salaries, transportation,

current expense, administrative expense, and recalculation funds. From

this total is subtracted the required local 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.


-17-







COUNTY CAPITAL OUTLAY AND DEBT SERVICE SCHOOL FUND

Legal Authorization.--Art. XII, Sec. 9, Constitution of the State of Florida,

and Sections 236.03, 236.07(7) and 230.767(5), Florida Statutes.

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

under the State Foundation Program.

Distribution plan.--$28,550,200. 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. 9, Article XII),

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 district to the

extent that annual principal and interest payments do not exceed 75 percent

of the district's annual entitlement. These bonds are referred to as "State

School Bonds." The district's share from the earmarked proceeds of the state

motor vehicle license fees is pledged for the redemption of these bonds.

The state commissioner is the agent of the State Board responsible for

the administration of Section 9, Article XII, and is authorized to provide

personnel in the Department of Education (DOE) 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


-18-







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 9, 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 districts 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 districts. 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 9, Article XII.

Earnings on investments other than debt service reserves are distributed

among the districts 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 district is applied on future

debt service requirements of such district. From the amount of capital

outlay and debt service funds each district is entitled to receive there

is deducted the amount necessary to meet debt service requirements, to

provide administrative expense for DOE and SBA, and to pay direct costs of

issuing bonds. The remaining portion of each district is sent to the district

to be spent on projects included in the district's priority list. The

district's priority list is based on a school facilities survey conducted

under regulations of the State Board. After all capital outlay needs in

a district have been met, any remaining funds may be used in accordance

with a plan for expenditure determined by the district board and approved by

the State Board.


-19-







These funds are distributed in September and March of each year to the

district school 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 school board of the district of location which

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

recalculation 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.--$35,923,100. 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

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

district boards of trustees for the junior college program in twelve

approximately equal monthly payments beginning July I each year. If a school

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 school district or junior

college and remit it directly to the appropriate retirement fund for the

credit of the school district 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 counties,

35 percent in January, 35 percent in February and the balance in March each

year.
-20-







COUNTY SCHOOL ADDITIONAL CAPITAL OUTLAY TRUST FUND

Legal Authorization--Section 236.074, Florida Statutes.

BReuirements for participation.--Each district 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.--$31,410,400. Each district'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 district boards after evidence is

furnished the department of education that an amount equal to twenty-five

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

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 districts when needed to meet capital outlay requirements.

Any district 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


-21-







in all cases. Funds may be invested, as provided by law, until they can be

util,ized, 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 COMISS ION FUNDS

Legal Authori4ation.--Section 550.14, Florida Statutes, and Special or Local

Acts of the Legislature.

Requirements for particiation.--Money accruing to each district board under

this section must be earmarked by local or special law for distribution to

the board or allocated by resolution of the board of county commissioners.

Distribution plan.--$12,00,000. 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 school board

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 school board. 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 school board to be

used for payment of teachers' salaries or for pupil transportation expenses.

During 1969-70, Racing Commission Funds for distribution to the 67 counties

are estimated at $26,000,000, of which an estimated $12,000,000 will be

used for the public schools.

STATE TEXTBOOK FUND

Legal Authorization.--Sections 233.01-233.50, Florida Statutes.

Requirements for participation--Counties are required to file reports

annually and are required to submit: necessary requisitions.

Distribution plan.--$8,347,900. This fund is allocated, but not distribu-


-22-







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

state contract. Districts 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.

By the beginning of each fiscal year, a credit in the state textbook

appropriation is apportioned to each district. This credit is the amount

for which districts 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 average life of a textbook is five years. Each district's

allocation is computed by multiplying the average annual per pupil cost

in each category by the latest official district enrollment figures

increased by the estimated statewide percentage increase in enrollment.

The sum of the totals for each category constitutes the district 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. Districts are also given additional credit in the

textbook allocation for losses suffered from fire (unless covered by

insurance), storm, or other causes. The commissioner reserves a sufficient

portion of the textbook appropriation to cover necessary freight charges,

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


-23-







sighted, and other costs of state textbook administration. The base allocation

plus the supplementary allocation constitute the total textbook allocation

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

the books computed as necessary for the total textbook allocation, each

district's allocation is prorated.


JUNIOR COLLEGE CONSTRUCTION FUND

Legal Authorization.--Article XII, Section 9, Constitution of the State of

Florida and implementing legislation.

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

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

group of counties.

Before funds available for junior college construction are released,

certain requirements must be met. A survey must be made under the supervision

of the 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 commissioner for review. The proposed building

program, along with recommendations of the state commissioner, 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.--$19,000,000. Support for the Junior College Construction

Fund is provided by a Constitutional amendment which provides for the sale of

bonds to be retired from utilities gross receipts taxes. The State Board of

Education has been granted authority by the Legislature to issue bonds, the

proceeds of which are to be used for capital outlay projects for institutions

of higher learning, junior colleges and area vocational-technical centers. The

total capital outlay needs are projected for each division and bond proceeds


-24-








are prorated by the State Legislature to the three divisions according

to these needs.

The Division of Community Colleges uses a formula in which a set of

size and utilization standards are applied to the projected enrollment

of each institution to determine the amount of space needed. Current

inventories are deducted and the net space needed is multiplied by an

estimated construction cost to determine the funds needed for construction.

Size and utilization standards have been established for each type of

space needed, i.e., classrooms, laboratories, libraries, etc. Provision

for variation in size of institutions is made by using different factors

for colleges with projected enrollments of 0-1000, 1000-2000 and over 2,000.

As funds become available in the Junior College Construction Fund, they

are allocated to the various junior colleges on the basis of priorities

established to meet the most pressing needs as determined by the formula.


VOCATIONAL-TECHNICAL CENTER CONSTRUCTION FUND

Legal Authorization.--Article XII, Section 9, Constitution of the State of

Florida, implementing legislation.

Requirements for participation.--A school board or school boards of contiguous

districts 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. Resolutions by each

district board are necessary when two or more districts 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 of 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.


-25-







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 Department of Education to establish needs for

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

jects based on the survey must be submitted to the state commissioner for

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

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

for approval. Upon request of the district school board, after proper

budger procedure and approval of plans and specifications, disbursements

are made to meet construction requirements.

Distribution plan.--$4,500,000. Support for the Vocational-Technical Center

Construction Fund is provided by a Constitutional amendment, which provides

for the sale of bonds to be retired from the utilities 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 and proceeds of bonds pledging such funds

for payment are for capital outlay projects for institutions of higher

learning, junior colleges and area vocational-technical centers. The

total capital outlay needs are projected for each division and bond proceeds

are prorated by the State Legislature to the three divisions according to

these needs.

Area Vocational-Technical Centers are planned to provide services

and programs in Vocational-Technical Education and Adult General Education.

Enrollment projections are made for each group. Instructional space

requirements are computed on the basis of a utilization factor per student

station experienced in the state applied to a square footage requirement

per student station for the appropriate type of specialized shop, laboratory,


-26-







or classroom. Facilities needed to provide supportive services are

determined. Current inventories are deducted and the net space needed is

multiplied by an estimated construction cost to determine the funds

needed for construction. As funds become available in the Vocational-

Technical Center Construction Fund, they are allocated to the various

centers on the basis of priorities established to meet the most pressing

needs.


EXCEPTIONAL CHILD EDUCATION EQUIPMENT FUND

Legal Authorization.--Chapter 69-100, Laws of Florida.

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

child units under the State Minimum Foundation Program.

Distribution plan.--$425,000. This fund is apportioned within limits of

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

exceptional child unit. 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 commissioner.


EXCEPTIONAL CHILD EDUCATION FACILITIES FUND

Legal Authorization.--Chapter 69-100, Laws of Florida

Requirements of participation.--A district must have approved exceptional

child units under the State Minimum Foundation Program and approval of


-27-







the State Board.

Distribution plan.--$3,575,000. This fund is allocated to selected districts

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

priorities 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 Department of Education; the education specifications must be approved

by the Exceptional Child Section and the Bureau of School Facilities of the

Department of Education; the district 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 disbanding 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 Department of Education and presented to a review

committee for recommendation to the State Board.


PUBLIC SCHOOL DRIVER EDUCATION FUND

Legal Authorization.--Section233.063, Florida Statutes.

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

provide 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 withregulations of the State Board.

Distribution pla.--$2,000,00. Funds are distributed, within limits of


-28-







the appropriation, for driver education expenditures, Each district 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 district is apportioned for

teachers' salaries, an amount equal to the unit value provided in the

foundation 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 districts after

the'close of that semester as soon as final reports from all districts

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. Any balance at the

close of the year reverts to the general revenue fund.


STATE SCHOOL FUND

Legal Authorization.--Article IX, Section 6, Constitution of the State

of Florida.

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

Distribution plan.--$2,000,O00. This fund is the interest earned on,

investments of the principal, and may include 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


-29-







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

administration of funds appeacioned 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 district school and a federal agency,'pursuant to

regulations of the State Board, must be accounted for as prescribed by

the State Board,

The State Commrissiorer 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,

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


-30-







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.

VILLAGE LEVIES

Each district school board, in accordance with the Constitution, is

authorized to levy a maximum of ten mills on the total non-exempt assessed

valuation of the district for support and maintenance of schools. This is

called the non-voted district millage and is levied by the district school

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 commissioner, as a special reserve earmarked for

capital outlay purposes.


-31-







The qualified electors who are owners of freeholds therein not wholly

exempt from taxation may vote in the county-wide district to determine an

additional school millage levy. This levy, which in accordance with the

Constitution can be levied for periods not longer than two years, is on

the total non-exempt assessed valuation of the county. A maximum of four

mills of this voted millage may, if approved at the 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 district revenue

described above. District school systems have no non-property taxes.

District millage levies for debt service created by virtue of voted

bond issues are set by the school board under the advisory supervision of

the state commissioner according to need for servicing the issues.

Millage levies for debt service are unlimited by law; however, State

Board regulations initially limit such levies to six mills except with

specific board approval. Millage levied for debt service is in addition

to the millage levied for current school operation.

Any district board desiring to participate in the K-12 Minimum

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

the non-exempt assessed valuation of the district, exclusive of district

village 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 may be initiated by a petition signed by


-32-







not less than 25 percent of duly qualified electors residing in the

district or the district school board 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

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 majority of the ballots in an election by freeholders who are

qualified registered electors residing in the district cast are in favor

of the issue,

APPROVAL AND SALE OF BONDS

All applications for bond issues are checked by the 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 in the district 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 commissioner before the district board

approves any petition of the special tax school district for a bond issue.


-33-







The 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.

BOND RECORDS, TAX LEVIES AND PAYMENTS

The district 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 voted and non-voted

millage levies on the non-exempt assessed valuation of taxable property

for current school expenditures, Such levies must be of sufficient amount

to cover the cost of debt service. The millage levy required to service

all outstanding bonds may not exceed six mills except with specific approval

of the State Board.

SHORT-TERM INDEBTEDNESS

By statute, district boards may borrow up to 80 percent of the revenue

anticipated from 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

district board also has authority to borrow money at a rate not to exceed


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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 any district 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. Districts may, however, use any supplementary

forms they find desirable. The school fiscal year in all district

school systems covers the period from July 1 through June 30.

LOCAL APPROVAL

School budgets are prepared by the district superintendent and

submitted to the district board on or before July 15. Before final approval

can be made, the district board must have a summary of the tentatively
:l *,"


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

composed of five members of the district school boards) of the school

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

submitted to the state commissioner 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 district school

boards, must be made by the tax assessor.

STATE REVIEW AND APPROVAL

On or before August 1 of each year, each district's annual school

budget is required by law to be submitted to the State Commissioner for

approval. The State Board prescribes all necessary regulations to guide

the state commissioner in examining budgets submitted by the district

boards. The state commissioner 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 commissioner

certifies the levy which is required, provided such levy does not exceed

ten mills which is the maximum authorized by the Constitution for the

non-voted district tax levy, to the district board. The district board

must amend its proposed budget and require the proper levy to be made in


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accordance with the direction of the state commissioner. The state

commissioner 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

district 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

The Legislative auditor is responsible for making an annual post-audit

of each district 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 District School Superintendent, the

District School Board, the State Comptroller and the State Commissioner of

Education. 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 district 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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