• TABLE OF CONTENTS
HIDE
 Front Cover
 Title Page
 Main














Group Title: Research report
Title: Florida public school finance program
ALL VOLUMES CITATION THUMBNAILS PAGE IMAGE ZOOMABLE
Full Citation
STANDARD VIEW MARC VIEW
Permanent Link: http://ufdc.ufl.edu/UF00082789/00006
 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: 1971-1972
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: VID00006
Source Institution: University of Florida
Holding Location: University of Florida
Rights Management: All rights reserved by the source institution and holding location.
Resource Identifier: oclc - 12589785
lccn - 72626740
 Related Items
Succeeded by: Florida education finance program.

Table of Contents
    Front Cover
        Front Cover 1
        Front Cover 2
    Title Page
        Page i
        Page ii
    Main
        Page 1
        Page 2
        Page 3
        Page 4
        Page 5
        Page 6
        Page 7
        Page 8
        Page 9
        Page 10
        Page 11
        Page 12
        Page 13
        Page 14
        Page 15
        Page 16
        Page 17
        Page 18
        Page 19
        Page 20
        Page 21
        Page 22
        Page 23
        Page 24
        Page 25
        Page 26
        Page 27
        Page 28
        Page 29
        Page 30
        Page 31
        Page 32
        Page 33
        Page 34
        Page 35
        Page 36
        Page 37
        Page 38
        Page 39
        Page 40
Full Text


ARCH


REPORT 94


REPORT


BUREAU OF RESEARCH R
DIVISION OF ELEMENTARY & SECONDARY EDUCATION


FLORIDA

PUBLIC SCHOOL


NOVEMBER 1971


FINANCE

PROGRAM
1971-72


rJ/' 3&7
rJ 1,1,;


DEPARTMENT OF EDUCATION
TALLAHASSEE FLORIDA
FLOYD T. CHRISTIAN, COMMISSIONER
































Research Report 94 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 83. (1500)












CONTENTS


Page


Introduction . . . . . . . . . . .

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

State Support . . . . . . . . .. .
Local Support. . . . . . . . . ..


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

Description of State Distributions . . . . . . . . .

State Minimum Foundation Program Fund, K-12 . . . . .
State Junior College Minimum Foundation Program Fund . . .
Average Daily Attendance Supplement . . . . . . .
District Ad Valorem Tax Equalization Fund . . . . . .
District Capital Outlay and Debt Service School Fund . . .
District School Sales Tax Trust Fund . . . . . . .
District School Additional Capital Outlay Trust Fund . . .
Racing Commission Funds . . . . . . . . . .
State Textbook Fund . . . . . . . . . . .
Junior College Construction Fund . . . . . . . .
Vocational-Technical Center Construction Fund . . . . .
Exceptional Child Education Equipment Fund . . . . .
Exceptional Child Education Facilities Fund . . . . .
Public School Driver Education Fund . . . . . . .
State School Fund . . . . . . . . . . . .

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


Provisions for Local School Revenue . . . . .


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


Provisions for School Indebtedness . . . . .


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


Provisions for School Budgets . . . .


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


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


S . . . 33
S . . . 33


r
r
r


r


f f ~ 1 I


6 o .
* .
* .












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 $822 million in state funds alone

must be detailed in application and complicated to some degree. The

provisions of the general statute were restricted in some instances by the

provisions enacted in the 1971 General Appropriations Act and the Supplemental

Appropriations to the 1971 General Appropriations Act. Since these restric-

tions apply only to the 1971-72 fiscal year, they are shown as footnotes in

order to maintain the integrity of the basic statute. 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 1971-72 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 six percent is obtained from
constitutionally earmarked sources. Less than one percent is from permanent
school endowments.

Over 83 i.n: 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, $2,700 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 three 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.
















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 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 capital outlay purposes, required debt service, 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 K-12 is equal
to 95 percent of the calculated yield of a four and one-half mill levy
on 100 percent of 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 1971-72 and the percent that
each fund represents of the estimated total state distribution are
shown to give a general indication of the extent of each distribution.






SUMMARY OF STATE DISTRIBUTIONS


Est. State Aid, 1971-72
Distribution Amount Percent


Basis of Distribution


Est. Total School Grants

1. Minimum Foundation
Program, K-12

2. Minimum Foundation
Program, Junior College





3. Average Daily Attendance
Supplement (Grades 1-12)


4. District Ad Valorem Tax
Equalization Fund
(Grades 1-12)

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

6. District School Sales Tax
Trust Fund (Grades K-JC)

7. District School Additional
Capital Outlay Trust
Fund (Grades 1-12)

8. Racing Commission Funds
(Grades K-12)

9. State Textbook Fund
(Grades --12)

10. Exceptional Child Educa-
tion Equipment Fund

11. Exceptional Child Educa-
tion Facilities Fund

12. Junior College Construc-
tion Fund


13. Vocational-Technical
Center Construction Fund

14. Public School Driver
Education Fund

15. State School Fund


$822,877,968


601,035,119


88,303,645






14,773,200




Not funded



30,307,014


39,322,000



4,924,400


12,700,000


8,962,590


100.0%


73.0


10.7






1.8


3.7


4.8



0.6


1.5


1.1


487,500


3,512,500


13,300,000



3,150,000


2,100,000

(5,000,000)


0.4


1.6



0.4


0.3

(0.6)


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


Number of pupils in average
daily attendance

Amount district yield/mill/
pupil is below state average
yield/mill/pupil



$400 per instruction unit


$500 per instruction unit



$200 per pupil increase in ADI

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









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) deficit in state funding

of retirement matching, and (4) the amount of money necessary to replace any

decrease from the previous year's federal impact funds (P.L. 874).

Distribution plan.--$601,035,119.1 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 is equal to ninety-five percent of the calculated yield of

four mills in 1970-71, five mills2 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,3 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. The required local effort for 1971-72 is determined from the

1970 tax roll. The level of assessment for each district as determined by the




IChapter 71-357, Laws of Florida, (1971 general appropriations act) includes a footnote
to the appropriation from the general revenue fund for the Minimum Foundation Program K-12
which reads in part: "From the appropriation for educational improvement funds the amount of
$2,750,000 is.,designated for the school lunch program to be allocated by commissioner of educa-
tion to respective school districts pro rata according to the number of type 'A' lunches...
distributed to economically needy children...." Clapter 71-358, Laws of Florida, (supplemental
appropriations to the 1971 general appropriations act) provides $596,035,119 from the general
revenue fund and $5,000,000 from the interest and principal of the state school fund.
2Section 236.07(9), Florida Statutes, as amended by Chapter 70-94, Laws of Florida, provides
that required local effort shall be based on five mills in 1971-72; however, Chapter 71-358,
Laws of Florida, (supplemental appropriations to the 1971 general appropriations act) provides
that the required local effort for 1971-72 shall be based on four and one-half ,. Ils in lieu
of the five mill requirement in Section 236.07(9), Florida Statutes.
3Section 236.07(9), Florida Statutes, as amended by Chapter 70-94, Lawslof Florida, pro-
vides for the auditor general to determine the level of assessment in each district and that
in each district failing to assess at one hundred percent valuation of property the required
local effort of the county shall be computed at a level of assessment equal to one hundred per-
cent of the non-exempt assessed value of property for the preceding calendar year. It further
provides that for the 1970-71 fiscal year the level of assessment of property as determined
by the ratio study on the 1970 tax roll shall be applied to the 1969 tax roll in determining
required local effort and for the 1971-72 fiscal year the same level of aesse5srent shall be
applied to the 1970 tax roll in determining required local effort. The .aliJity of the ratio
study on the 1970 tax roll certified by the auditor general was litigated. The court ruled
that this ratio study could not be used; therefore, the tax rolls as reported by the department
of revenue, without any adjustment, are used in determining the required local effort for the
1970-71 and 1971-72 program.
The auditor general is conducting a new ratio study on the 1971 tax roll which is to be
used in computing the 1972-73 required local effort for the MFP.

-6-








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 to each instruction unit for other current expense

is increased by $1,1004 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. The required local effort for 1971-72 is $159,210,030.

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 basic instruction units5 is determined by dividing the

4Section 236.07(5)(a), Florida Statutes, as amended by Chapter 70-94, Laws of Florida, pro-
vides for an increase of $1,100 (each year for four years) in the value of each instruction
unit for other current expense ($3,250 per unit in 1971-72); however, Chapter 71-358, Laws of
Florida,(suppleiental appropriations to the 1971 general appropriations act) provides that for
1971-72 the value shall be $2,700 per unit ($550 increase over 1970-71) in lieu of the $3,250
contained in Section 236.07(5)(a), Florida Statutes.
5Sections 236.04(1) and (2), Florida Statutes, provide for the computation of basic instruc-
tion as described here; however, Chapter 71-357, Laws of Florida, (1971 general appropriations
act) requires that in 1971-72 for each vocational education unit approved to provide instructional
services in the area of useful home economics in a district, one half an instruction unit earned
on the basis of average daily attendance as provideG in Section 236.04(1) ana (2), Florida
Statutes, shall be subtracted from the total of such units computed for that district.
-7-







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 classifica-

tion 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 preced-

ing 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 instruc-

tion of exceptional children from regular classes; one unit for each full-time


-8-








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 instructional

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 kinder-

gartens 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

-9-








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


-10-









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 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 (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

in the morning are determined for each district by adding (1) 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


-11-








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 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


-12-








department of 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 $2,150 in 1970-71, $3,250 in 1971-72,6

$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



6Section 236.07(5)(a), Florida Statutes, as amended by Chapter 70-94, Laws of Florida,
provides that the value of each instruction unit for other current expense in 1971-72 shall be
$3,250; however, Chapter 71-35S, Laws of Florida, (supplemental appropriations to the 1971
general appropriations act) provides that the value shall be $2,700 for 1971-72 in lieu of
the $3,250 contained in Section 236.07(5)(a), Florida Statutes.


-13-








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 valuation

of non-exempt property for all counties collectively for the preceding 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 $1,720.7 This amount must

be used by each school board for improving the quality of the educational 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.8 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



7Section 236.07(6), Florida Statutes, provides $1,720 per instruction unit for education
improvement expense; however, Chapter 71-357, Laws of Florida, (1971 general appropriations act)
designates ?2,750,000 of the total -education improvement expense allocation for the school
lunch program. As a result the value of a unit for education improvement expense for 1971-72
is estimated to be $1,678.80.
8Chapter 71-357, Laws of Florida, (1971 general appropriations act) provides that "each
school district shall train and employ occupational specialists and that from the appropriation
for educational improvement expense funds allocated to each district an amount sufficient for the
training and employment of occupational specialists at a ratio of one occupational specialist for
each forty vocational education instruction units shall be used for this purpose; provided,
however, that if the amount required for occupational specialists is greater than the net amount
of educational improvement expense funds received by the district after replacement of local
funds lost because of village rollback or if funds from a source other than the educational
improvement expense allocation are used for occupational specialists a school district shall not
be required to train and employ occupational specialists from the educational improvement expense
fund allocation." The "local funds lost because of millage rollback" refers to the reduction
in local taxes resulting from the millage reduction required by the enactment of Section 236.251,
Florida Statutes, which limits the millage levy to ten mills, with certain exceptions, for
districts to participate In the Minimum Foundation Program K-12.

-14-








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

as "recalculation funds."9

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) deficit

of state funding of retirement matching, and (4) 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.


9Section 236.03, Florida Statutes, provides for recalculation funds as described here;
however, Chapter 71-357, Laws of Florida, (1971 general appropriations act) provides that for
1971-72 recalculation funds shall be calculated only on programs where the basic allocation
was determined on prior year attendance and the Instruction units including special teacher
services and supervisory units resulting therefrom.

-15-








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. Recalculation

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 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.


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 appropria-

tion 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.--$88,303,645. 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 trans-

portation. Effective July 1, 1971, districts are not required to provide local

financial support for junior colleges.

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.


-16-








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; an earned

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

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

by $3,900. An additional $300 is added to the value of each instruction unit

sustained by instructional personnel in Rank III or above who hold a continuing

contract; and another additional $300 is added if such instructional person

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

fivel0 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

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

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

miles from the junior college. The amount for transportation is determined

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


10Section 230.767, (2)(d), Florida Statutes, provides for five percent, however, Chapter 71-357,
Laws of Florida, (1971 general appropriations act) provides that a three percent factor be used
in lieu of the five percent required by Section 230.767(2)(d), Florida Statutes.


-17-








If the ADA in any junior college for tne 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 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. 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.


AVERAGE DAILY ATTENDANCE SUPPLEMENT

Legal Authorization.--Chapter 71-358, Laws of Florida.

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

pupils in average daily attendance.

Distribution plan.--$14,773,200. Funds under this provision are distributed in

1971-72 to each district school board on a pro rata basis for each pupil in average

daily attendance in grades one through twelve during the 1970-71 school year.


DISTRICT AD VALOREM TAX EQUALIZATION FUND

Legal Authorization.--Section 236.0725, Florida Statutes.

Requirements for participation.--A district must have an assessment level equal


-18-








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.--Not funded for 1971-72. 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. 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.


-19-








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.--$30,307,014.11 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

maximum rate of interest on such bonds shall not exceed seven percent per annum.

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


110f this amount $26,481,594 is for the K-12 program and $3,825,420 is for the junior
college program.


-20-








(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 sigiiing 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 ser-

vice on such bonds and the investment 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 receivethere 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


-21-








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 Authorization.--Sections 236.075,236.03, and 230.074(2), Florida Statutes.

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

the State Foundation Program.

Distribution plan.--$39,322,000.12 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 college and remit it directly to the appropriate

retirement fund for the credit of the school district or junior college. District



120f this amount $34,414,000 was appropriated for the K-12 program and $4,908,000 for the
junior college program.


-22-









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 Feb-

ruary 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 "recalcula-

tion." 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 participation.--Each district school system is required

by law to create a separate fund known as the School Construction Fund.

Distribution plan.--$4,924,400. Each district's share of this fund

amounts to $80013 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


13Section 236.074, Flor;da Statutes, provides fcr an allocation 9f $300 per pupil increase;
however, Chapter 71-350, Laws of Florida,(supplemental appropriations to the 1971 general
appropriations act) provides $4,924,400 for the 1971-72 fiscal year which was estimated to
provide $200 per pupil increase.


-23-









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.--Sections 550.13 and 550.14, Florida Statutes, and Special

or Local Acts of the Legislature.

Requirements for participation.--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.--$12,700,000. 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 1971-72, Racing Commission Funds for distribution to the 67 counties

are estimated at $29,915,500, of which an estimated $12,700,000 will be

used for the public schools.


STATE TEXTBOOK FUND

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

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


-24-








annually and are required to submit necessary requisitions.

Distribution plan.--$8,962,590. All textbook purchases are made by state

contract for books adopted as a uniform system of textbooks for use in the

public schools, except that each school district may use up to ten percent

of its textbook allocation for instructional materials that are not included

on the adopted list,provided such materials are approved by the district

school board. 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) determined by multiplying any increase over the

previous year, for each grade group, by the inventory cost for that grade

group. Districts are also given additional credit in the textbook


-25-







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

or other causes. The commissioner reserves a sufficient portion of the text-

book appropriation to cover necessary freight charges, printing of new publica-

tions, rebinding, large-type books for the partially sighted, and other costs of

state textbook administration. The base allocation plus the supplementary

allocation constitutes the total textbook allocation for each district. If

funds appropriated are not sufficient to purchase all of the books necessary

for the total computed textbook allocation, each district's allocation is pro-

rated.


JUNIOR COLLEGE CONSTRUCTION FUND

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

Florida and implementing legislation.

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

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

group of counties.

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 specifica-

tions, disbursements are made to meet construction requirements.

Distribution plan.--$13,300,000. 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


-26-








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 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 under 1,000, 1,000-2,000 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


-27-








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.--$3,150,000. 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 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


-28-








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

Legal Authorization.--Chapter 71-357, Laws of Florida.

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

child units under the State Minimum Foundation Program.

Distribution plan.--$487,500. 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 71-357, Laws of Florida.

-29-








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

child units under the Minimum Foundation Program and approval of the

state board.

Distribution plan.--$3,512,500. 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 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 with regulations of the state board.


-30-








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 participation.--Districts must operate public schools.

Distribution lan.--$5,000,000. 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

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


-31-








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 regula-

tions 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 administer-

ing 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, 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


-32-








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
Education Professions Development Act, PL 89-329, Part B-2
Education of the Handicapped Act, PL 91-230
Adult Education Act, Title III, PL 91-600, as amended


PROVISIONS FOR LOCAL SCHOOL REVENUE

PROPERTY ASSESSMENTS14

Assessed valuations are established by county tax assessors who are

elected by popular vote in each county except Dade County where the

assessor is appointed by the metro commissioners. Three members of the

board of county commissioners and two members of the school board in each

county serve as the board of tax adjustment for the county with authority

to adjust the tax rolls, hear complaints against individual assessments,

hear complaints against denials of homestead exemption by the tax assessor,

and hear disputed or appealed applications for exemptions from ad valorem

taxation. The department of revenue has general supervision of the assess-

ment and valuation of property so that all property will be valued accord-

ing to its just valuation. 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
15
Each district school board, in accordance with the Constitution, is

14See footnote 3, p. 6.

15Article VII, Section 9(b) of the State Constitution provides that "Ad valorem taxes,
exclusive of taxes levied for the payment of bonds and taxes levied for periods not longer
than two years when authorized by vote of the electors who are owners of freeholds therein not

-33-









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.

The qualified electoral6 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



wholly exempt from taxation, shall not be levied in excess of the following millage upon the
assessed value of real estate and tangible personal property;...for all school purposes, ten
mills;..." Section 236.25, Florida Statutes, as amended by Chapter 70-401, Laws of Florida,
states: "The school board of each district shall levy a district tax, which shall include
the proceeds derived from the assessment and collection of taxes from the following authoriza-
tions: (1) A levy of not more than ten mills on the dollar of all taxable property in the district
for the support of public schools as provided in Section 9, Article VII of the State Constitution.
The amount of village levy shall be determined by the school board. (2) A levy for the support
of schools within the amounts authorized by vote of the electors who are owners of freeholds
not wholly exempt from taxation as provided in Section 9, Article VII of the State Constitution...."
These provisions were litigated and the federal district court ruled that both were unconstitu-
tional'. The determination of unconstitutionality was made solely upon the basis that both the
constitutional section and the statute limited participation in village elections to "freeholders."
Since the court felt it could not sever the "freeholder" provision from the affected sections,
both entire sections fell. This decision is presently on appeal to the Fifth Circuit Court
of Appeals primarily on the issue of severability. Subsequent to this action Chapter 71-263,
Laws of Florida, was enacted. This chapter amends Section 236.31 and Section 236.32(3), Florida
Statutes, by deleting the requirement that only "freeholders" shall vote in the district millage
elections. It further amends Section 236.25, Florida Statutes, by rewriting the entire section
with no reference to "freeholders."
16 b .
Ibid.


-34-








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 of ten mills on

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

millage voted17 for (1) capital outlay purposes, (2) required debt service,

(3) deficit of state funding of retirement matching, and (4) the amount

of money 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 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.



17The 1971 Legislature enacted Chapter 71-263, Laws of Florida, which provides that district
school boards on their own motion and without a vote of the electorate may levy millage in excess
of ten mills for the same and additional purposes set forth in Section 236.251, Florida Statutes.
In the event the constitutional ten mill cap is reinstated by the Court, any non-voted millage
in excess of ten mills may be found to be illegal.

-35-








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

cast in an election by qualified registered electors residing in the district

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 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 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


-36-








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 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.

Junior college boards of trustees may request approval of the depart-

ment of education to negotiate a current loan, when funds on hand are

insufficient to pay obligations, with provisions for repayment during the

fiscal year. Such a loan is approved by the department when the proposal

is reasonable, the expenditure necessary, and revenues sufficient to meet

the requirements of the loan can reasonably be anticipated.


-37-








Loans for capital outlay purposes may be incurred by a district school

board 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 obliga-

tions 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 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 the state commissioner by June 1.

Tax levies for school purposes, as certified by the district school boards,

must be made by the tax assessor.


-38-









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.18 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 auditor general is responsible for making an annual

post-audit of each district school system. Audits generally are made


18See footnote 15,'p. 33.


-39-









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 auditor general 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.


-40-




University of Florida Home Page
© 2004 - 2010 University of Florida George A. Smathers Libraries.
All rights reserved.

Acceptable Use, Copyright, and Disclaimer Statement
Last updated October 10, 2010 - - mvs