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REPORT 83
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REPORT
BUREAU OF RESEARCH '
DIVISION OF ELEMENTARY & SECONDARY EDUCATION
Florida
Public School
Finance Program
1970-71
SEPTEMBER 1970
DEPARTMENT OF EDUCATION
TALLAHASSEE FLORIDA
PLOYD T. CHRISTIAN. COMMISSIONER
- ~-. ~--.I
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Research Report 83 is a summary of the State
program for financing Florida public schools
prepared by the Bureau of Research, Division
of Elementary and Secondary Education, of the
Florida Department of Education. Basic data
for this report were compiled by Mrs. Marie A.
Kohler, Administrator, Institutional Research.
This report revises Research Report 79.(1,000)
CONTENTS
Page
Introduction . . . . . . . . . .. . .
Selected Program Facts . . . . ... . . . 2
State Support . . . . . . . . . ... 2
Local Support . . . . . . . . . . . 3
Summary of State Distributions . . . . . . . .. 3
Description of State Distributions . . . . .. . 5
State Minimum Foundation Program Fund, K-12 .. . .. . 5
State Junior College Minimum Foundation Program Fund . . 16
District Ad Valorem Tax Equalization Fund . .. . . 19
District Capital Outlay and Debt Service School Fund. . . 20
District School Sales Tax Trust Fund. . . . . . 22
District School Additional Capital Outlay Trust Fund. . .. 23
Racing Commission Funds . . . . . . . . .. 24
State Textbook Fund . . . . . . . . . . 24
Junior College Construction Fund. . . . . . . 26
Vocational-Technical Center Construction Fund .. . . .. 27
Exceptional Child Education Equipment Fund. . . . 29
Exceptional Child Education Facilities Fund . . . . 30
Public School Driver Education Fund . . . . . . 30
State School Fund . . . . . . . . . . 31
Provisions for Federal School Revenue. . . . . . . 32
Provisions for Local School Revenue. . . . . . . 33
Property Assessment . . . . . . ..... . 33
Millage Levies. . . . . ... . . . . 33
Provisions for School Indebtedness . . . .. . . . 35
Initiating Bond Issues. . . . ........ 35
Limitations on Issuance of Bonds. . . . . .. 35
Limitations on Debt . . . . . . . . . 35
Voting Requirements . . . . . . . .. . .. 35
Approval and Sale of Bonds. . . . . . . . 35
Bond Records, Tax Levies, and Payments. .. . . . . 36
Short-Term Indebtedness . ...... ... . . 36
Provisions for School Budgets. . . . . . . . . . 37
Budget Forms. ... ... . . . . . . 37
Local Approval. . . . . . . . . . 38
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 $788 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 1970-71 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.
Over 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. District
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 $9,500, 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, $2,150 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 $7,300 based on college preparation,
experience, and contractual status. Other Junior College Foundation Program
allowances include $1,250 per transportation unit, $1,900 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 district.
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 six 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 District
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.
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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 millage
voted for required for junior college minimum effort additional kindergarten
required local effort, deficit in state funding of retirement matching, and
the amount of money 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 four mill levy on 100 percent
of 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 1970-71 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, 1970-71
Diptribution Appupt Percent
Bneie nf T)4ntrihaitt~n
Est. Total School Grants
1. Minimum Foundation
Program, K-12
2. Minimum Foundation
Program, Junior College
3. District Ad Valorem Tax
Equalization Fund
(Grades 1-12)
4. Capital Outlay and Debt
Service Program (Grades
K-12 and Junior College)
5. District School Sales Tax
Trust Fund (Grades K-JC)
6. District School Additional
Capital Outlay Trust
Fund (Grades 1-12)
7. Racing Commission Funds
(Grades K-JC)
8. State Textbook Fund
(Grades 1-12)
9. Exceptional Child Educa-
tion Equipment Fund
10. Exceptional Child Educa-
tion Facilities Fund
11. Junior College Construc-
tion Fund
12. Vocational-Technical
Center Construction Fund
13. Public School Driver
Education Fund
14. State School Fund
$788,667,917
569,096,786
76,240,480
7,000,000
29,906,450
38,374,420
23,827,200
11,200,000
8,211,281
427,500
3,572,500
15,459,800
3,251,500
2,100,000
1,000,000
100.0%
72.1
9.7
0.9
3.8
4.8
3.0
1.4
1.0
0.1
0.5
1.9
0.4
0.3
0.1
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
Amount district yield/mill/
pupil is below state average
yield/mill/pupil
$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
child unit
Program need as approved by
State Board
Legislative authorization
based on formula
Legislative authorization
based on formula
Driver Education units based
on pupils instructed
Distributed as a part of
K-12 Foundation Program
Distributio Am n P B i
DESCRIPTION OF STATE DISTRIBUTIONS
STATE MINIMUM FOUNDATION PROGRAM FUND. K-12
Legal Authorization.--Sections 236.01-236.251, Florida Statutes.
Requirements for participation.--In order to participate in the State
appropriation for the Minimum Foundation Program (MFP), each district
school system is 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 (1) capital
outlay purposes, (2) required debt service, (3) required junior college minimum
effort, (4) required additional kindergarten local effort, (5) deficit in
state funding of retirement matching, and (6) the amount of money necessary to
replace any decrease from the previous year's federal impact funds (P.L. 874).
Distribution plan.--$569,096,786. The cost of the Minimum Foundation Program
for each district is made up of the computed cost for instructional salaries,
transportation, current expense 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 four mills in 1970-71, five mills in 1971-72, six mills in
1972-73, and seven mills in 1973-74 and each year thereafter of tax on one
hundred percent of the non-exempt assessed valuation of the district for the
preceding calendar year. The auditor general, after consultation with the
department of revenue, is to determine the ratio of the assessment roll compared
to full value in each school district and certify such ratios to the department
of education no later than May 1 of each year. (Except for the 1970 ratio
study which is to be certified November 1, 1970). The required local effort
for 1970-71 is determined from the 1969 tax roll. For the 1970-71 program the
level of assessment for each district as determined by the ratio study of the
1970 tax roll will be applied to the 1969 tax roll. For each subsequent year
the level of assessment for each district as determined by the ratio study on
the current tax roll will be applied to said current tax roll. Each year that
the districts' required effort is increased by one mill, the value of each
instruction unit for other current expense is increased by $1,100 with the
following safeguard provisions: (1) In any year that the legislature fails to
provide an appropriation sufficient to fund the additional increase of $1,100,
the districts' required effort for that year shall revert to the level of the
prior year in which the legislature did appropriate sufficient funds for the
$1,100 increase, and (2) If in any year, as the required effort is increased
mill-by-mill, a district which has a required effort increase in dollars
which exceeds the number of dollars created by the $1,100 increase in other
current expense, shall receive additional state funds so that the total
allocation for other current expense is at least equal to the required
effort increase for that year.
If the district is operating kindergartens under the foundation program,
in 1970-71 the required local effort for grades 1-12 is increased 5 percent
or $3,000 per kindergarten unit approved, whichever is less. After
July 1, 1971, districts will not be required to provide additional effort
for kindergarten units. The estimated required local effort for K-12 for
1970-71 is $126,329,101.
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
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 proItect 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 provided under the
above conditions are called "ratio units."
To the number of instruction units for regular teachers, thus determined,
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 instructional
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 or a proportionate fraction of a unit is allowed when used in accordance
with regulations of the state board. Special teacher services may include,
but are not limited to, personnel such as principals, librarians, materials
specialists, guidance counselors, deans, physical education teachers, art
teachers, music teachers, industrial arts teachers, remedial reading specialists,
teachers for special instructional projects, visiting teachers, coordinators
of district-wide summer educational enrichment programs, and psychologists.
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 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 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
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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
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 are 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 (I) 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
in the morning are determined for each district by adding (I) the loaded
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
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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 for 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 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 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
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 department of education to serve the area is $1,250 for each 30 pupils
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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 $2,150 in 1970-71, $3,250 in 1971-72,
$4,350 in 1972-73, $5,450 in 1973-74 and each year thereafter. To these
amounts shall be added annually an amount determined by dividing the total
number of instruction units included in the MFP for all districts collectively
into the difference between (1) the amount required for participation in the
MFP for all counties as determined by the application of the ratio study of
the auditor general and (2) the amount determined by applying the number of
mills required for participation to 95 percent of the total assessed valua-
tion of nonexempt property for all counties collectively for the preceding
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year. Of these amounts $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-
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 department of education has the authority
to increase the state portion of the foundation program fund for such
district by such percentage of increase. These additional amounts are known
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as "recalculation funds." For the 1970-71 year the general appropriations
act provides that recalculation funds shall be calculated only on programs
where the basic allocation was determined on prior year attendance and
the instruction units including special units resulting therefrom.
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,
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 (1) capital outlay purposes, (2) required debt service, (3) required
junior college minimum effort, (4) required additional kindergarten local
effort, (5) deficit of state funding of retirement matching, and (6) the
amount of money necessary to replace any decrease from the previous year
in funds from PL 874 (federal impact funds), with decrease meaning the
difference between the amount received by the district during the current
fiscal year and the largest amount received subsequent to July 1, 1967.
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
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directly to the university and are in lieu of payments of state funds to the
district school board for the operation of such school.
STATE JUNIOR COLLEGE MINIMUM FOUNDATION PROGRAM FUND
Legal Authorization.--Sections 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 olan.--$76,240,480. The cost of the Junior College Foundation
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. After July 1, 1971, districts
will not be required to provide financial support for junior colleges.
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 1970-71 is $8,736,986.
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
required to support the junior college is ineligible to receive any state
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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
administrative 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 $1,900 for each junior college
instruction unit. For administrative expenses, including salaries, of the
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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 determined 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 :s greater than the ADA in the junior college during the
first two months of the preceding academic year, the department of
education has the 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.
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DISTRICT AD VALOREM TAX EQUALIZATION FUND
Legal Authorization.--Section 236.072, Florida Statutes.
Requirements for participation.--A district must have an assessment level
equal to or above that of the state-at-large, must have levied ten mills
of tax for operating purposes the prior year and must have an average
yield per mill of taxation per pupil which is less than the average
state-wide yield per mill per pupil.
Distribution plan.--$7,000,000. The allocation to a school district is
determined as follows: (1) Multiply the total state-wide non-exempt assessed
valuation for the prior year as adjusted to one hundred percent by one mill
and then divide the result by the ADA in grades 1-12 for the prior year.
The quotient is the state-wide yield per mill per pupil; (2) Multiply the
district's non-exempt assessed valuation for the prior year as adjusted
to one hundred percent assessment by one mill and then divide the result
by the ADA in grades 1-12 in the district for the prior year. The quotient
is the average yield per mill of taxation per pupil for the district; (3)
Compare the district yield per mill per pupil to the state-wide average
yield per mill per pupil; (4) If the district yield is less than the state
average yield, multiply the amount of dollars the district is below the
state average per mill per pupil by the number of pupils in ADA in grades
1-12 for the prior year in the district; (5) Multiply this product by the
difference between the millage for required local effort in the MFP and
seven mills, which will be three mills in 1970-71, two mills in 1971-72,
and one mill in 1972-73; (6) The amount thus obtained will be the amount
to be allocated to the district. The amount available to any district
will be distributed in twelve monthly payments as nearly equal as practicable,
except for the 1970-71 year no distribution will be made until after
January 1, 1971 and shall consist of no more than six monthly payments.
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If the funds appropriated are not sufficient to pay the requirements in
full, the commissioner of education will prorate the available funds. This
program will terminate July 1, 1973 when the required local effort for
participation in the MFP reaches seven mills.
DISTRICT 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.--$29,906,450. 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
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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
from the District 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 District 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 District 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
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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.
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.
DISTRICT SCHOOL SALES TAX TRUST FUND
Legal Authrization.--Sections 236.075, 236.03, and 230.074(2), Florida Statutes.
Requirements for Darticivation.--Each district must earn instruction units
under the state foundation program.
Distribution ipan.--$38,374,420. 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 1 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
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college and remit it directly to the appropriate retirement fund for the
credit of the school district or junior college. District 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 school
boards, 35 percent in January, 35 percent in February and the balance in
March each year. Sales Tax Funds for junior colleges are increased by
the same percentage that state funds for the Junior College Minimum
Foundation Program are increased for "recalculation." Junior college
recalculation funds are distributed to the junior college district board
of trustees in six approximately equal monthly payments beginning
January 1 each year.
DISTRICT SCHOOL ADDITIONAL CAPITAL OUTLAY TRUST FUND
Legal Authorization.--Section 236.074, Florida Statutes.
Requirements for oarticipation.--Each district school system is required
by law to create a separate fund known as the School Construction Fund.
Distribution plan.--$23,827,200. 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. Officially committed funds are transmitted to the
districts when needed to meet capital outlay requirements.
Funds received under this act are to be used only for acquiring,
building, constructing, altering, improving, enlarging, furnishing, equipping
or payments on lease purchase agreements for capital outlay projects for
school purposes approved by the department of education and in accordance
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with the findings of the state board as to priority of needs as shown by
a survey or surveys. 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 provided for under this act.
RACING COMMISSION FUNDS
Legal Authorization.--Section 550.14, Florida Statutes, and Special or Local
Acts of the Legislature.
Requirements for Darticipation.--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 lIan.--$11,200,000. 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 1970-71, Racing Commission Funds for distribution to the 67 counties
are estimated at $28,000,000, of which an estimated $11,200,000 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
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annually and are required to submit necessary requisitions.
Distribution plan.--$8,211,281. This fund is allocated, but not distributed
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 state-wide 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
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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 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.
ReouLrements for particitation.--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.--$15,459,800. Support for the Junior College Construction
Fund is provided by the 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
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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.
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 Athorization.--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
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by the state board for vocational education and the law and such criteria
must not require more than 150 full-time equivalent students for establishing
a new vocational-technical training center.
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
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 of the district school board, after proper
budget procedure and approval of plans and specifications, disbursements
are made to meet construction requirements.
Distribution plan.--$3,251,500. 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 and 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
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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,
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
Lezal Authorization.--Chapter 70-95, Laws of Florida.
Requirements for participation.--Each district must have approved exceptional
child units under the State Minimum Foundation Program.
Distribution plan.--$427,500. 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 furniture 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 70-95, Laws of Florida
Requirements for participation.--A district must have approved exceptional
child units under the Minimum Foundation Program and approval of the
state board.
Distribution plan.--$3,572,500. 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.-Section 233.063, Florida Statutes.
Requirements for Darticipation.--All secondary schools are required to
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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 with regulations of the state board.
Distribution plan.--$2,100,000. Funds are distributed, within limits of
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 particioation.--Districts must operate public schools.
Distribution plan.--$1,000,000. 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
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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 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 commissioner 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.
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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, PL 88-210, 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, as amended
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
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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.
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
millage voted for (1) capital outlay purposes, (2) required debt service,
(3) required junior college minimum effort, (4) required additional
kindergarten local effort, (5) deficit of state funding of retirement
matching, and (6) the amount of money necessary to replace any decrease
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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
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
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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 for a bond issue.
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
village 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,
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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 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
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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
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 June 1. If the budget review
board disapproves the budget, however, the due date is extended to June 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
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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
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
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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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