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Group Title: Research report
Title: Florida public school finance program
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Full Citation
STANDARD VIEW MARC VIEW
Permanent Link: http://ufdc.ufl.edu/UF00082789/00007
 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: 1972-1973
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: VID00007
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
    Table of Contents
        Page i
        Page ii
    Main
        Page 1
        Page 2
        Page 3
        Page 4
        Page 5
        Page 6
        Page 7
        Page 8
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        Page 12
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        Page 27
        Page 28
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        Page 30
        Page 31
        Page 32
        Page 33
        Page 34
        Page 35
        Page 36
        Page 37
        Page 38
        Page 39
        Page 40
        Page 41
        Page 41a
    Appendix
        Page 42
        Page 43
        Page 44
    Back Cover
        Page 45
        Page 46
Full Text








CONTENTS


Page

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

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
Homestead Exemption. . . . . . . . . . .. 16
District Cost Differential . . . . . . . . 17
School Lunch Program . . . . .. . . . . 18
State Junior College Minimum Foundation Program Fund . . 19
District Capital Outlay and Debt Service School Fund . . 21
School District Supplemental Capital Outlay. . . . ... 23
Racing Commission Funds . . . . . . . . 24
State Textbook Fund. . . . . .. . . . . . 25
Junior College Construction Fund . 26
Vocational-Technical Center Construction Fund. . . . 28
Exceptional Child Education Equipment Fund .. . . . 30
Exceptional Child Education Facilities Fund . . . 30
Public School Driver Education Fund . . . . . ... 31
State School Fund. . . . . . . . . . .. 32

Provisions for Federal School Revenue. . . . . . . . 32

Provisions for Local School Revenue. . . . . . . . 34

Property Assessments . . . . . . . . . .. 34
Millage Levies . . . . . . . . . . . 35

Provisions for School Indebtedness . . .. . . . . 36

Initiating Bond Issues . . . . . . . . 36
Limitations on Issuance of Bonds . . . . . 36
Limitations on Debt. . . . . . . . . . . 36
Voting Requirements. . . . . . . ... . 36
Approval and Sale of Bonds . . . . . . . .. 37
Bond Records, Tax Levies, and Payments . . . . . 37
Short-Term Indebtedness. . . . . .. . . . 38

Provisions for School Budgets. . . . . .. . . . 39

Budget Forms . . . . . . . . . . . 39
Local Approval . . . . . . . . . . 39
State Review and Approval . . . .. . . 40

Provisions for School Audits . . . . . . 40

Appendix . . . . . . . . . . . . . 42











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

$928 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 1972-73 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 con-
stitutionally earmarked sources. Less than one percent is from permanent
school endowments.

Over 85 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,
and capital outlay and debt service.

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, $6,570 per instruction unit for other current
expense, and $400 per instruction unit for capital outlay and debt service.

Junior College Foundation Program instruction unit values for instruc-
tional salaries range from $3,900 to $7,300 based on college preparation,
experience, and contractual status. Other Junior College Foundation Program
allowances include $1,250 per transportation unit, $2,763 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.

Capital outlay and debt service funds, although included in the Founda-
tion Program, are separately provided for by earmarked motor vehicle license
funds. Four other state funds, which account for about five percent of the
total state distribution, also provide assistance for school facilities. State
sources provide essentially the total construction cost of junior college
facilities.

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 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 90 percent of the calculated yield of a six mill levy on 100 per-
cent 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
estimated amount of each state aid fund for 1972-73 and the percent
that each fund represents of the estimated potal state distribution
are shown to give a general indication of the extent of each dis-
tribution.


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SUMMARY OF STATE DISTRIBUTIONS


Est State Aid, 1972-73
Distribution Amount Percent


Basis of Distribution


Est. Total School Grants


$928,571,884


1. Minimum Foundation
Program, K-12 685,346,186

2. Minimum Foundation
Program, Junior College 110,401,507





3. District Cost Differential
(K-12) 12,000,000

4. Homestead Exemption (K-12) 12,500,000


5. Capital Outlay and Debt
Service Program (Grades
K-12 and Junior College) 32,936,400
6. School Lunch Program
(K-12) 3,357,900

7. Supplemental Capital Outlay
(Grades K-12) 17,348,400

8. Racing Commission Funds
(Grades K-12) 14,000,000

9. State Textbook Fund
(Grades 1-12) 9,933,091


10. Exceptional Child Educa-
tion Equipment Fund (K-12)

11. Exceptional Child Educa-
tion Facilities Fund (K-12)

12. Junior College Construc-
tion Fund

13. Vocational-Technical
Center Construction Fund

14. Public School Driver
Education Fund (K-12)


15. State School Fund


458,500


5,241,500


16,784,400


5,964,000


2,300,000


(3,000,000)


100.00%


73.81


11.89






1.29

1.34




3.55

0.36


1.87


1.51


1.07


0.05


0.56

1.81


0.64


0.25


(0.32)


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

Specified in Appropria-
tions Act

Amount of revenue loss
to district



$400 per instruction unit
Number of type "A" lunches
sveyd economically needy
Cnldren

$200 per base year unit
$400 per growth unit

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) maintain an ongoing systematic evaluation of the edu-

cational program needs and develop a comprehensive annual and long

time plan for meeting these needs; (j) 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


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(4) the amount of money necessary to replace any decrease from the previous

year's federal impact funds (P.L. 874).

Distribution plan.--$685,346,186. The cost of the Minimum Foundation Program

for each district 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 by each district toward the cost of the Minimum

Foundation Program is equal to ninety percent of the calculated yield of 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

of all non-exempt real property compared to full value of all non-exempt real

property in each school district and certify such ratios to the department

of education no later than May 1 of each year.1 The required local effort

for 1972-73 is determined from the 1971 tax roll. 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. For the years 1972-73 and 1973-74,

each school district's required effort shall be determined by applying the

stated millage to 90% of the sum of the value of non-exempt real property

based on 100 percent assessment as determined by the auditor general plus the

value of the non-exempt personal property based on the actual assessment by

the local tax assessor plus the value of railroad and telegraph property.





1The validity of the ratio study on the 1971 tax roll certified by the
auditor general is in litigation.









In 1973-74 if a district has a required effort increase in dollars from the

one mill increase which exceeds the number of dollars created by the $1,100

increase in other current expense, it shall receive additional state

funds so that the total increased allocation for other current expense

is at least equal to the amount of the one mill required effort increase

for that year. This provision commonly referred to as "no loss guarantee"

was suspended for the 1972-73 fiscal year. The required local effort

for 1972-73 is $259,465,673.

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 and recalculation

funds.

The number of basic instruction units is determined by dividing the

average daily attendance (ADA) during the preceding year in all ele-

mentary 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


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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 condi-

tions and distance from another school of the same type. For each vocational

education unit approved to provide instructional services in the area of

useful home economics in a district,one-half of a basic instruction unit

earned on the basis of average daily attendance shall be subtracted from the

total basic units computed for that district.

In addition to regular and special units earned by ADA the law provides

units which protect a district against a sudden decline in units as a result of

low ADA caused by hurricane, pestilence, flood, epidemic, or other factors

beyond the control of the school board of any district. When the ratio

between the total ADA and the total average daily membership (ADM) of students

in the entire district for the year is below the ratio of the highest two of

the preceding four years in that district, the average ratio between the ADA

and the ADM in that district for the highest two of the preceding four years

is used as the basis for calculating the total number of instruction units for

instructional personnel in the district. Units provided under the above condi-

tions 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


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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 instruc-

tion hours; (2) one unit for each qualified full-time vocational

teacher employed in the secondary schools 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 instruc-

tion 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 vocational post-

secondary and adult classes for each: eight full-time equivalent

(FTE) students in courses in cost category I, 11 FTE students in courses

in cost category II, 14 FTE students in courses in cost category III,

16 FTE students in courses in cost category IV, full-time teacher-

coordinator employed for cooperative education courses in which students

are being coordinated who are enrolled in school at least one-half of

the school day which is assigned cost category V, full-time teacher-

coordinator employed for cooperative education courses in which

students are enrolled in school less than one-half of the school day

which is assigned cost category VI; with a full-time equivalent








student defined as each 810 hours of attendance in approved vocational courses

and cost categories determined by a cost analysis study of vocational courses

conducted as prescribed by the director of the division of vocational education;

(4) 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 proportionate 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; (5) 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.

For each 20 vocational education units, one occupational specialist unit

or a proportionate fraction of a unit is allowed when used in accordance with

regulations of the state board.


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The department of education is authorized to allocate elementary

counselor units to the districts in the same ratio as the average daily

attendance of the district to the average daily attendance of the state

for the prior year in grades 1-6, for the employment of certified

elementary school counselors.

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


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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 are increased by three and three-tenths

percent, for salaries of supervisors, special teacher service personnel,

vocational and adult education teachers who are employed, pursuant to regula-

tions of the state board, 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


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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 multiply-

ing 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


-13-









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 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 $6,570 in 1972-73 and by $7,670 in 1973-74

and each year thereafter. Of these amounts $500 per instruction unit is

provided to assist the district in meeting the required payments to the

retirement systems.


-14-







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; however, these funds

are 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.

These additional amounts are known as "recalculation funds."

The total allowable cost of the foundation program is determined

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

other current expense, and recalculation funds. From this total is

subtracted the required local contribution. The balance, or remainder,

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

If the state appropriation is not sufficient to finance the state's

portion of the Minimum Foundation Program including recalculation, the

total amount required of the state is prorated to the extent that funds

are available.

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

tion 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, (4)

commissions to tax collector and tax assessor, and (5) 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.


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Funds for salaries, transportation, and other current expense are dis-

tributed 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.



HOMESTEAD EXEMPTION

Legal Authorization.--Section 196.031 (3)(4), Florida Statutes.

Requirements for participation.--The school district must have a tax revenue

loss as a result of the increased exemption (from $5,000 to $10,000) for per-

sons 65 years of age or older who qualify.

Distribution plan.--$12,500,000. Every person who has legal title to real

property in the state and who resides thereon and makes it his or her permanent

home is entitled to an exemption from all taxation on such property up to

the assessed valuation of $5,000. For every person entitled to the above

exemption who has been a permanent resident for five consecutive years and

who is 65 years of age or older the exemption is increased to $10,000 for

taxes levied by the school board for current school operation. Each county

tax assessor is required to compile a list of the taxable property removed

from the tax roll as a result of the increased exemption and a statement of the

tax revenue loss to the school board, which is to be furnished to the depart-

ment of revenue not later than April 10. The legislature appropriates funds

for the school boards in the amount of the actual net loss of funds to school

boards under this provision. If the appropriation is not sufficient to finance

the requirement, the allocation is prorated to the extent that funds are

available.


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DISTRICT COST DIFFERENTIAL

Legal Authorization.--Chapter 72-409, Laws of Florida.

Requirements for participation.--Districts must be named in the act

creating allocation and meet conditions stipulated.

Distribution plan.--$12,000,000. Funds under this provision are allocated

to each of the 33 named districts up to the stipulated amount when the

following conditions prevail. The Department of Education shall deter-

mine the average unit value from state and local sources for the fiscal

years 1971-72 and 1972-73 as follows: (1) for 1971-72 divide the total

number of instruction units included in the 1971-72, K-12 MFP into

the sum of the state's share of the K-12 MFP for instructional salaries,

current expenses other than instructional salaries and transporta-

tion, and education improvement expense, plus K-12 county school sales

tax, plus the calculated amount from a ten (10) mill tax levied on 95%

of the non-exempt assessed valuation of the district as shown on the

1971 calendar year tax roll upon which taxes were collected; (2) for

1972-73 divide the total number of instruction units included in the

1972-73 K-12 MFP into the sum of the state's share of the K-12 MFP

for instructional salaries, and current expenses other than instruc-

tional salaries and transportation, plus the calculated amount from a

ten (10) mill tax levied on 95% of the non-exempt assessed valuation

of the district as shown on the 1972 calendar year tax roll upon which

taxes were collected, plus the amount received from the state to replace

the district school tax loss resulting from the additional $5,000

homestead exemption provided in Chapter 71-309, Laws of Florida.

If the 1972-73 average unit value computed above in any named

district exceeds the 1971-72 average unit value computed above for

such district by 4% or more, that district shall not be eligible to


-17-








receive any of the amount stated; if the 1972-73 average unit value computed

above in any named district is less than 104% of the 1971-72 average unit

value computed above for such district, that district shall be allocated the

lessor of (1) the amount stated or (2) the additional amount above the state's

share of the K-12 MFP for instructional salaries and current expenses other

than instructional salaries and transportation, plus the calculated amount

from a 10 mill tax levied on 95% of the non-exempt assessed valuation of the

district as shown on the 1972 calendar year tax roll upon which taxes were

collected, plus the amount received from the state to replace the district

school tax loss resulting from the additional $5,000 homestead exemption

provided in Chapter 71-309, Laws of Florida, necessary to provide a 1972-73

average unit value that is 4% above the 1971-72 average unit value; provided,

further, that if $12,000,000 is not sufficient to provide full payment to all

eligible districts, each district shall receive a pro rata share; provided,

however, if the ratio study conducted by the auditor general on the 1971

calendar year tax roll is declared invalid for purposes of determining district

required local effort for participation in the K-12 MFP, none of the $12,000,000

shall be allocated as herein prescribed, but instead shall be a part of the

appropriation for the state's share of the K-12 MFP.



SCHOOL LUNCH PROGRAM

Legal Authorization.--Chapter 72-316, Laws of Florida.

Requirements for participation.--Each district must adopt policies to provide

for an appropriate food and nutrition program consistent with regulations

and standards prescribed by the state board.

Distribution plan.--$3,357,900. Funds under this provision are to provide

the per meal difference, when the computed cost of meals served to economically

needy children exceeds: (1) income from federal sources, and (2) receipts


-18-









from the sale of reduced price meals. The computed cost of meals shall

not exceed the necessary cost of obtaining,preparing and serving

such meals as prescribed by regulations of the state board. Income

from federal sources must be used for lunches that meet the nutrition

requirements as specified in the national school lunch act. Funds

are distributed to the districts monthly after reports on the number

of lunches served during the previous month are received.



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 plan.--$110,401,507. 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. Effective

July 1, 1971, districts were 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 is allotted for each ten students

in ADA in occupational programs, and one unit is allotted for each

15 students in compensatory programs. One unit or proportionate

fraction is allotted for administrative and special instructional


-19-








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; 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 instruc-

tional person has completed ten years efficient teaching service in Florida

public schools. Beginning July 1, 1972 the amount included for instruc-

tional salaries during the regular term is increased by five percent for cost-

of-living increase; and the amount included for instructional salaries during

the regular term is increased by three percent for staff and program develop-

ment.

An amount for current expenses other than instructional salaries and

transportation is calculated at the rate of $2,763 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 during the

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

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


-20-








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

The total allowable cost of the Junior College Foundation Program

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

transportation, and current expense. Funds for salaries, transporta-

tion, 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

expenditures.

Beginning July 1, 1972, the Minimum Foundation Program is computed

based on full-time equivalent student attendance in the current year,

and the law further provides that in the fiscal year 1972-73 only, Ao

college shall receive a lesser amount of Minimum Foundation Program

funds than the amount generated by the previous year's enrollment.



DISTRICT CAPITAL OUTLAY AND DEBT SERVICE SCHOOL FUND

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

Florida, and Sections 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.--$32,936,4002 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 founda-

tion program is separately provided through a Constitutional amendment

(Sec. 9, Article XII), earmarking the first proceeds of revenue

derived from motor vehicle license sales.




20f this amount $28,352,800 is for the K-12 program and $4,583,600
is for the junior college program.


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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 commis-

sioner is the agent of the state board responsible for the administration of

Section 9, Article XII, and is authorized to provide personnel in the depart-

ment of education (DOE) for the purpose of carrying out the fiscal duties and

responsibilities of administering the provisions of this section. An admin-

istrative expense fund is provided by a deduction from the 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 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


-22-








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 admin-

istrative 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 con-

ducted 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.



SCHOOL DISTRICT SUPPLEMENTAL CAPITAL OUTLAY

Legal Authorization.--Chapter 72-329, Laws of Florida.

Requirements for participation.--Each district must earn instruction

units under the State Foundation Program.

Distribution plan.--$17,348,400. Funds under this provision are allocated

annually for the K-12 program in each school district as follows:


-23-









(1) multiply the number of instruction units included in the 1967-68 district

MFP by $200, and (2) multiply the number of instruction units in the current

year's MFP, which are in excess of the 1967-68 units, by $400.

The annual allocation to each district is the sum of (1) and (2) above,

and shall be used for the construction, acquisition, improvement, enlargement,

furnishing, equipping, remodeling, altering, maintaining, renovating, or

repairing of school facilities, and the acquisition or improvement of school

sites for approved capital outlay projects based upon the recommendations of

a state survey.

If a district has met all its capital outlay needs, such funds may, upon

approval of the state board, be expended for debt service on bond issues.

If all capital outlay and debt service needs of a district have been met,

such funds may be expended for any lawful school purpose as approved by the

state board.



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.--$14,000,000. 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


-24-








to the school board. Each board of county commissioners may by resolu-

tion apportion all or any part of funds received, which are not ear-

marked 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 1972-73, Racing Commission Funds

for distribution to the 67 counties are estimated at $29,915,500, of

which an estimated $14,000,000 will be used for the public schools.



STATE TEXTBOOK FUND

Legal Authorization.--Sections 233.07-233.50, Florida Statutes.

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

annually and are required to submit necessary requisitions.

Distribution plan.--$9,933,091. 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 text-

book 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


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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 enroll-

ment 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 allocation for losses suf-

fered from fire (unless covered by insurance), storm, or other causes. The

commissioner reserves a sufficient portion of the textbook appropriation to

cover necessary freight charges, printing of new publications, rebinding,

large-type books for the partially 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 appro-

priated are not sufficient to purchase all of the books necessary for the

total computed textbook allocation, each district's allocation is prorated.



JUNIOR COLLEGE CONSTRUCTION FUND

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

Florida and implementing legislation.

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

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

or group of counties.


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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.--$16,784,400. 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 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 accord-

ing to these needs.

The division of community colleges uses a formula in which a set

of size and utilization standards is applied to the projected enroll-

ment 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,


-27-








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 and 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 establish-

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

must comply with criteria established by the state board for vocational

education and the law and such criteria must not require more than 150 full-

time equivalent students for establishing a new vocational-technical training

center.

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


-28-









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

budget procedure and approval of plans and specifications, disburse-

ments are made to meet construction requirements.

Distribution plan,--$5,964,000. 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 ser-

vices and programs in vocational-technical education and adult general

education. Enrollment projections are made for each group. Instructional

space requirements are computed on the basis of a utilization factor

per student station experienced in the state applied to a square

footage requirement per student station for the appropriate type of

specialized shop, laboratory, 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


-29-









priorities established to meet the most pressing needs.


EXCEPTIONAL CHILD EDUCATION EQUIPMENT FUND

Legal Authorization.--Chapter 72-409, Laws of Florida.

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

child units under the State Minimum Foundation Program.

Distribution plan.--$458,500. This fund is apportioned within limits of

the legislative appropriation, at the rate of $750 per approved new excep-

tional 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 72-409, 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.--$5,241,500. 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


-30-








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 require-

ments 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 specifica-

tions 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.

Distribution plan.--$2,300,000. 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


-31-








courses in which each of 125 pupils is provided a minimum of 30 hours of

classroom instruction and an average minimum of 6 hours actual driving

experience exclusive of observation time in the practice driving vehicle.

For each driver education unit earned, the district is apportioned

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

foundation program for salaries according to the rank and contract status

of the instructor, or salary actually paid, whichever is smaller; and

for current expense, up to $700 per driver education unit. Funds computed

on attendance data for each semester are distributed to districts after

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

have been submitted and approved.

If the cost of units requested exceeds the funds available, each unit

shall receive a pro rata share of available funds. Any balance at the

close of the year reverts to the general revenue fund.



STATE SCHOOL FUND

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

of Florida.

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

Distribution plan.--$3,000,000. This fund is the interest earned on invest-

ments of the principal, and may include the principal, of the State School

Fund. It is distributed to local school districts as a part of the State

Foundation Program Fund K-12 and is not separately distributed.



PROVISIONS FOR FEDERAL SCHOOL REVENUE

The state board of education must approve plans for cooperating with the

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


-32-








which it finds cooperation desirable and must provide for the proper

administration of funds apportioned to the state from federal appropria-

tions. 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 aho 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 administra-

tion, 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


-33-








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
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 ASSESSMENTS

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.


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MILLAGE LEVIES

Each district school board, in accordance with the Constitution,

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

assessed valuation of the district for support and maintenance of

schools. This is called the non-voted district millage and is levied

by the district school board without a vote of the people. The levy

is usually made for general purposes but a maximum of two of the ten

mills may be set aside, upon approval of the state commissioner, as a

special reserve earmarked for capital outlay purposes.

The qualified electors 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.


-35-








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

tion 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

voted for (1) capital outlay purposes, (2) required debt service, (3) deficit

of state funding of retirement matching, (4) commissions to tax assessor

and tax collector and (5) 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.

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.


-36-








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 debt service. The millage

levy required to service all outstanding bonds may not exceed six


-37-








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 per-

cent 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.

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


-38-








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 rOR 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.


-39-








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

boards, must be made by the tax assessor.

STATE REVIEW AND APPROVAL

School board approval of the budget is required on or before August 1 of

each year at which time the budget is required by law to be submitted to the

state commissioner for approval. The state board prescribes all necessary

regulations to guide the state commissioner in examining budgets submitted

by the district boards. The state commissioner has authority to require

budgets to be revised only when they have not been correctly prepared; that

is, when the proper forms have not been used, the estimates are incorrect,

budgets are out of balance, proposed expenditures are illegal, or when tax

levies proposed are not adequate to assure the proper maintenance and support

of the public schools as prescribed by law.

If the tax levy proposed is not adequate, the state commissioner

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

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

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

amend its proposed budget and require the proper levy to be made in 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 after the close of the


-40-








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.


-41-










APPENDIX


DISTRIBUTION OF RACE TRACK FUNDS
TO SCHOOLS AMONG THE SEVERAL DISTRICTS
UNDER EXISTING LAWS
(Revised as of October, 1972 by Mr. Carey E. Ferrell, Jr.,
Consultant, School Administratic,1

NOTE: Several local acts relating to the distribution of Racing Com-
mission Funds are very involved. Noteworthy are the acts for
the following counties: Baker, DeSoto, Gilchrist, Hardee,
Highlands, Hendry, Lafayette, and Wakulla.
**


:hua 61-1412




tr 65-653










Ch. 25015, Acts of 1949
Ch. 28898, Acts of 1953


Ch. 30460, Acts of 1955


.ford 65-945


ard Ch. 23634, Acts of 1947

ard Ch. 17201, Acts of 1935
63-1185
63-970


oun Ch. 24174, Acts of 1947










Ch. 26495, Acts of 1951




Lotte 65-1211

is 65-973

65-1164


er Ch. 30522, Acts of 1955
Ch. 57-439

bia Ch. 24213, Acts of 1947
Ch. 25446, Acts of 1949
Ch. 25421, Acts of 1949
Ch. 30389, Acts of 1955



Ch. 30469, Acts of 1955














Ch. 30264, Acts of 1955


1/3 to county commissioners; 2/3
to school board of any race track
funds uncommitted for county com-
mission's debt service.

After the first $33,000 the next
$25,000 to the hospital authority;
$10,000 to county planning _nd
development commission; all addi-
tional tax on dog racing levied under
provisions of Ch. 29,694, Laws of
Florida, to school board and all
other race track funds divided
equally between school board and
board of county commissioners.

25% to schools; 25% to Panama City;
5% City of Lynn Haven; Balance pro-
rata discretion of county ootamis-
sioners.
All increase provided by 1955 Legis-
lature to school board.

Divided equally between school board
and board of county commissioners.

1/2 to school board.

All for schools. Moneys paid
directly to school board for school
purposes. Certificates of indebt-
edness payable from first $150,000.

First $16,500 to school board; next
$6,400 to be divided equally between
two boards; next $31,500 various,
other than school board; Balance,
if any, to be divided equally between,
two boards; of school board portion
$25,000 must be annually earmarked
in special fund for "School Building
Construction, Reconstruction & Main-
tenance."

Amendment authorized to issue
$2,000,000 in bonds or revenue
certificates, pledging so much as
may be necessary of above fund.

1/3 to school board; 2/3 to board
of county commissioners.

50% to school board and 50% to
board of county commissioners.

50% to school board and 50% to
board of county commissioners.

None to school board by law. Some-
times through discretion, of county
commissioners.

1/2 to school board, $5,000 per
year plus interest for 5 years ear-
marked for loan. School Board au-
thorized to borrow $50,000 for 5
years and be repaid from proceeds
accruing to school board from race
track funds.

School board authorized to retire
revenue certificates not to exceed
$210,000 for building gyms (1) at
or near Ft. white High School at
Ft. White, $10,000; (2) at or near
Columbia High School at Lake City,
$10,000; (3) at or near Richardson
High School at Lake City, $10,000.
Cost of above gyms & sites not to
exceed $80,000 each; total not to
exceed $240,000. Distribution:
$15,000 annually from additional
race track funds for preceding pro-
jects. Remaining funds; 1/2 to
school board; 1/2 to county commis-
sioners.

Affects county commissioners only.


Dade Ch. 19193, Acts of 1939

DeSoto Ch. 22584, Acts of 1945

61-802

Ch. 65-1105


Dixie


Duval


Ch. 25449, Acts of 1949
65-785


71-611




65-834


Escambia Ch. 57-1005





Plagler Ch. 30130, Acts of 1955


61-909
65-918


71-639
71-637



Franklin 65-684













Gadsden Ch. 57-665


Gilchrist 67-984








Glades Ch. 67-964


65-980


Hamilton Ch. 17197, Acts of 1935
Ch. 30000, Acts of 1955
Ch. 31459, Acts of 1956,
Extra Ordinary Session


All to school board.

1/3 to county general school fund;
1/3 of dog track funds to school board.
(1955 Legislature)

Provides for a referendum in 1965
to approve the distribution provided
in Chapter 65-1105. The provisions
are so involved as to require read-
ing for details.

1/2 to schools.
Earmarks expenditures of such funds
by directing that $2,336 be used to
purchase band uniforms, and begin-
ning in 1966 that $500 annually be
placed in a "special county high
school band fund for purchase of band
uniforms."

1/2 to school board for "school pur-
poses." Remainder to county commis-
sion to be distributed as directed
by General law.


All moneys distributed under provi-
sions of Chapter 550 to school board.

All to school board for increase in
teachers' salaries, of which $4,000
per annum shall be paid by school
board to the president of junior
college for increase in his salary.
(No cut off date in law.)

First $50,000 to school board; re-
mainder to county commissioners.

Amends Chapter 61-909 to provide
distribution of county commissioners
portion of race track funds.

First $50,000 to school board; second
$50,000 to county commissioners; re-
mainder divided equally between
school board and board of county com-
missioners.

Beginning July 1, 1970 and for 20
years subsequent to July 1, 1970;
first $140,000 to school board for
servicing certificates of indebted-
ness; remaining funds allocated as
follows: (a) School board to re-
ceive same amount as in 1969-70 less
$40,000 until 6-30-90. (b) All
other race track funds shall accrue
to the board of county commissioners.
(c) Beginning July 1, 1990 all race
track funds shall be divided equally
between the school board and the
board of county commissioners.

1/2 to county commissioners; 1/2
to school board.

First $25,000 to board of county com-
missioners; the second $25,000 to
school board; next $2,000 to county
commissioners for care of indigent;
5% of accrual tu county park board;
3% of accrual to City of Trenton;
1% to City of Bell; balance of annual
accrual divided equally between
school board and county commissioners.

Divides race track funds equally
between school board and board of
county commissioners.

First $230,000 to school board and
remainder to board of county commis-
sioners.

1/2 to school board.
School board to be used to retire
interest bearing certificates; equip
gyms (a) at or near Jasper High
School, Jasper; (b) at or near Jen-
nings High School at Jennings; (c)
at or near White Springs. Not to


















Hamilton (continued)








Hardee 67-796













Hendry Ch. 57-536 as amended by
Ch. 65-838









Hernando Ch. 25336, Acts of 1949
61-1692
63-896



Highlands 65-702







Hillsborough Ch. 20244, Acts of 1941

Holmes 63-769




















Indian River See Sec. 550.14,
Florida Statutes

Jackson Chapter 19901, Special
Acts, 1939
63-822
63-971
63-972






Jefferson Ch. 25448, Acts of 1949
Ch. 27078, Acts of 1951


exceed $80,000 each or total of
$240,000. Distribution: 1st
$24,000 to school board for above
debt service; 1/2 of remainder to
school board; other 1/2 at joint
discretion of county commissioners
and school board including payment
unfunded indebtedness, teacher
salaries, maintenance.

For 1965-66; 1/3 to school board
and 2/3 to county commissioners.
Thereafter, all amounts received
shall be divided between school
board and county commissioners as
allocated in 1963-64; provided
that any amount in excess of that
received in 1963-64 shall go to
the county commissioners but if
such excess is more than $50,000
that amount in excess of $50,000
shall be distributed with 2/3 to
the county commissioners and 1/3
to school board.

First $40,500 to school board;
next $12,500 to county commis-
sioners; next $40,000 to school
board; next $25,000 to county
commissioners; next $25,000 to
hospital authority; next $62,800
to school board; all funds in
excess of $205,800, 75% to county
commissioners and 25% to the
hospital authority. Authorizes
issuance of revenue certificates.

$5,000 City of Brooksville;
$25,000 hospital trustees;
$8,500 to school board; all funds
in excess of $44,000 allotted 50%
to school board and 50% to county
commissioners.

Provides for equal distribution
between school board and county
commissioners; first $50,000 al-
located to county commissioners
to be paid to school board for
support of junior college pursuant
to requirements of Chapter 65-869,
Laws of Florida.

All to schools.

To Holmes County Hospital Corpora-
tion, 1963-$12,175.00; 1964-
$13,912.50; 1965-$12,612.50; 1966-
$12,312.50; 1967-$13,012.50; 1968-
$12,675.00; 1969-$12,337.50; 1970-
$13,000.00; 1971-$12,625.00; 1972-
$12,250.00; 1973-$12,875.00; 1974-
$13,462.50; 1975-$14,012.50; 1976-
$14,525.00; and from next $20,000
to county commissioners; next
$20,000 to school board for school
plant construction to embrace con-
struction of gymnasium at Holmes
County High; next $7,000 to board
of county commissioners; next
$10,000 to Holmes County Hospital
Corporation; remaining moneys: 50%
to school board and 50% to county
commissioners with county health
unit maintained jointly by two
boards.

At discretion of county commissioners.


First $12,000 to Jackson County
Hospital; next $6,000 to Campbellton-
Graceville Hospital; next $114,000
divided equally between school board
and county commissioners; balance
accruing paid to school board.

From funds received prior to July
1, 1963, $2,000 to school board for
school for retarded children (Hope
School).

1/2 to schools for support and main-
tenance and/or indebtedness of gen-
eral school fund after both county
commissioners and school board have
contributed to swimming pool $3,000
each from any existing surplus
above amounts budgeted for these
funds.


Lafayette 65-623


Chapter 25063, Acts of
1949

Ch. 22899, Acts of 1945

Ch. 21836, Acts of 1943

65-1217


Liberty 67-880
70-782






Madison 65-963



Manatee Ch. 17188, Acts of 1935


Marion

Martin

Monroe

Nassau


Acts of 1931

Ch. 24256, Acts of 1947

Ch. 23117, Acts of 1945

65-733


Okaloosa 63-587











Okeechobee 59-730
63-961
63-855


Orange

Osceola

Palm Beach

Pasco


Ch. 23783, Acts of 1947



Ch. 20356
Ch. 59-726


Pinellas 70-895



Polk Ch. 19106, Acts of 1939

Putnam 65-685


First $15,000 to development com-
mission; next $10,000 to county
health department; next $1,200 to
health clinic; remainder divided
equally between school board and
county commissioners. Funds for
school board earmarked to provide
$2,000 for high school athletic
department; $1,000 for high school
music department; $500 for voca-
tional agriculture department.

1/3 to school board.


1/2 to school board.

1/2 to schools.

Allocates all funds to school board
with first $12,000 payable to the
board of county commissioners; re-
mainder of funds to be used by
school board for county school
purposes.

First $50,000 to school board debt
service; remainder divided 50-50
between school board and county
commissioners with county commis-
sioners allocating an additional
$23,000 to school board under cer-
tain conditions.

First $12,500 to county health and
Hospital board with remaining funds
divided equally between school board
and county commissioners.

Inoperative apparently by discre-
tion.

Inoperative county commissioners.

1/2 to school board.

50% to school board.

First $20,000 to recreation com-
mission; remainder divided equally
between school board and county
commissioners.

To county commissioners: $4,000
for health unit; $3,000 for court-
house grounds; $25,000 for indigent
patients fund; to Okaloosa county
hospital system: $33,000; remain-
ing funds 50% to county commission-
ers and 50% to school board. Act
does not affect distribution of
race track funds received prior to
September 30, 1963, except as pro-
vided in Section (2) relating to
hospitals.

45% to school board and 55% to
county commissioners; authorizes
school board to issue certificates
of indebtedness not to exc od
$150,000 at any one time, with
interest not to exceed 5% and to
pledge race funds in payment

At discretion of county commission

1/2 to school board.

None

1/2 to school board to teachers
salary fund; county commissioners
must allot $20,000 of their :./2
to Jackson Memorial Hospital.

50% to school board and 50% to
county commissioners; authorizes
school board to issue certificates
of indebtedness.

At discretion o/ county commission

First $40,000 to hospital authority
remainder to be distributed with 1C





Putnam (continued)


St. Johns 65-1046




St. Lucie Ch. 59-978






Santa Rosa 61-703
71-900

Sarasota Ch. 17191 (35)


Seminole 70-946






Sumter Ch. 24229, Acts of 1947
61-563

Suwannee 67-907


Taylor


Union


Volusia

Wakulla











Walton


65-873


65-930


61-1354

65-827











61-1737


Washington 63-1000


to hospital authority, 45% to
school board and 45% to county
commissioners.

First $33,000 to county commis-
sioners; remainder divided equally
between county commissioners and
school board.

First $33,000 to school board;
next $33,000 to county commis-
sioners; 10% of gross total of
1958-59 receipts to school board
for junior colleges; balance 1/2
to school board and 1/2 to county
commissioners.

50% to county commissioners; 50%
to school board.

All to schools; teachers salary;
vocational education; repairs.

An amount not to exceed $60,000
to Seminole port authority;
balance to school board upon sat-
isfaction of obligations under
Chapter 67-2078, all funds to
school board.

1/2 to school board.


All funds above first $20,000 to
be paid as follows: 1/2 to school
board and 1/2 to county commission-
ers; school board required to pay
$5,000 of said funds to development
authority until indebtedness of au-
thority is paid then said $5,000
will revert to school board.

Equally between school board and
county commissioners.

55% to school 'board and 45% to
county commissioners.

All to school board for teachers.

First $65,000 to school board to
pay principal and interest on pro-
posed $800,000 bond issue for con-
solidated high school; next $12,000
to county board of health; next
$4,000 to welfare authority; next
$1,000 to civil defense; balance
equally between county commission-
ers and school board. Of the latter
amount received by school board
$15,000 shall be used to retire
school bond certificates.

$15,000 county hospital; $5,000
voting machines; $500 curb market;
$1,000 national guard unit; of re-
mainder 50-50 to county commission-
ers and school board.

Of first $24,000: 1/2 to school
board and 1/2 to county hospital;
of next $6,000: 1/2 to school
board and 1/2 to county health
units; balance: 1/2 to school
board and 1/2 to county commission-
ers. School board must allocate
$1.00 per pupil for music and/or
classroom supplies. Beginning in
1963, money in excess of that re-
ceived during the calendar year
1962 shall be expended up to and
including $6,000 for payment of
expenses.







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