CHARTER SCHOOL CAPITAL OUTLAY UPDATE
As we reported to you earlier this week, the House has amended HB 873 to include new provisions for funding charter school capital outlay needs. The bill replaces the existing eligibility criteria for charter school outlay funding to provide that, in order to be eligible, a charter school must be part of a high-performing charter school system ormeet all 3 of the following criteria: be in operation for 2 or more years (rather than the current 3 or more years); not have more than two consecutive school grades lower than “B” unless the school serves a student population at least 50% of which is eligible for free or reduced-price meals; and must have an annual audit with no financial emergency conditions. The bill eliminates provisions granting priority for funding to charter schools that received capital outlay funding in FY 2005-06 and revises the methodology for calculating the amount of state funding for charter school capital outlay from 1/15th to 1/40th of the cost per student station. If state funds for charter school capital outlay do not fully fund 1/40th of the cost per student station or the amount of per student funding generated by the district school board’s discretionary ad valorem tax levy for capital outlay, whichever is less, then the school district must share discretionary ad valorem tax revenues to make up the difference. In addition, the bill changes the revenue sources which are not allowed to be expended in amounts above the statutory costs per student station to include allcapital outlay revenue sources available to school districts. Further, the bill restricts school district eligibility for state PECO appropriations for three years if the district exceeds the statutory cost per student station for school construction projects. The bill requires DOE and EDR to work together to study the actual costs of construction and submit recommendations to the legislature on new statutory costs per student station for school construction projects. The House staff analysis of the bill estimates that under the provisions of this bill, if the state allocates $90 million in PECO funds for charter school capital outlay (as is the case in the current House budget), school districts would need to contribute about $63 million for charter school capital outlay.
Today, the Senate Education Appropriations Subcommittee proposed an alternate plan for charter school capital outlay funding. Unlike the House plan outlined above, the Senate plan does not include any provision requiring school districts to expend local capital outlay millage revenue for charter school capital outlay. Instead, the Senate plan focuses on revising the allocation formula for state funds for charter school capital outlay and on adding restrictions on the use of capital outlay funding for both traditional schools and charter schools. With regard to the allocation formula, the Senate plan provides that all eligible charter schools would receive a standard base amount of funds per FTE derived from the gross capital outlay funding amount appropriated for charter schools. Charter schools with 75% or more free and reduced lunch enrollment would receive an additional 25% of the standard base amount and charter schools with 25% or more ESE enrollment would receive an additional 25% of the standard base amount. In addition, the Senate plan would prohibit an otherwise eligible charter school from receiving a capital outlay allocation unless the governing board of the schools annually certifies under oath that the funds will be used solely and exclusively for constructing, renovating or improving charter school facilities that are owned by specifically defined entities. Similar to the House plan, the Senate plan requires OPPAGA to work with DOE to conduct a study of the statutory cost per student station amounts and provide recommendations for the revised costs to the Governor and legislative leadership, prohibits school districts from spending more than the statutory cost per student station on new construction from all available revenue sources, and restricts school district eligibility for state PECO appropriations for three years if the district exceeds the statutory cost per student station for school construction projects.
We have posted additional materials on these two proposals on the FSBA website on the Facilities & Planning page in our Resource Room. You may access these documents by clicking on the Resource Room tab on the right hand side of our home page at www.fsba.org and then selecting the Facilities & Planning link on the Resource Room table of contents or by using this direct link: https://fsba.org/facilities-
BUDGET PROCESS UPDATE
Today, the House and Senate each passed their respective budgets and budget related bills. Since both chambers must, ultimately, pass identical budget bills, here is a quick explanation of what occurred today to move toward that goal: This morning, the House passed their budget and budget related bills (including HB 5001, HB 5003, and HB 5005 listed below under Bills on 3rd Reading in the House Session) and sent them to the Senate for consideration. In sending their versions of these budget bills, the House requested that the Senate either pass the House versions of the bills or agree to address the differences between the House and Senate versions of the bills in the Budget Conference. This afternoon, the Senate took up their budget and budget related bills (including SB 2500, SB 2502, and SB 7042 listed below under Bills on 3rd Reading in the Senate Session), substituted the House version of each bill for the Senate version of each bill, and laid the Senate versions on the table – this step reduces the two sets of budget bills to one set of budget bills. The Senate then amended the House bills with strike all amendments that removed the House text of each bill and replaced it with the Senate text of each bill. In effect, the Senate passed their own versions of each bill, but the bills now carry the House bill number. Since the Senate did not pass the House version of the bills, the Senate has agreed to the House request for a Budget Conference that will work out the differences between the House and Senate bills. It is expected that the chambers will soon name members to serve on the Conference Committees and the conference process will probably begin sometime next week.
In the House Session:
Bills on 3rd Reading:
HB 5001 – 2016-2017 General Appropriations Act by Appropriations – READ 3RD TIME; PASSED THE HOUSE; IN MESSAGES TO THE SENATE
Provides moneys for annual period beginning July 1, 2016, & ending June 30, 2017, & supplemental appropriations for period ending June 30, 2016, to pay salaries & other expenses, capital outlay—buildings & other improvements, & for other specified purposes of various agencies of state government.
HB 5003 – Implementing / 2016-2017 General Appropriations Act by Appropriations — READ 3RD TIME; PASSED THE HOUSE; IN MESSAGES TO THE SENATE
Implements specific appropriations of the General Appropriations Act for the 2016-2017 fiscal year.
HB 5005 – Florida Retirement System Contribution Rates by Appropriations — READ 3RD TIME; PASSED THE HOUSE; IN MESSAGES TO THE SENATE
Revises required employer retirement contribution rates for members of certain membership classes & subclasses of FRS; revises employer assessment to offset costs of administering investment plan & providing educational services; provides finding of important state interest.
HB 7053 – Child Care & Development Grant by Education – READ 3RD TIME; PASSED THE HOUSE
Expands list of entities that have access to child abuse records for approving providers of school readiness services; requires school readiness program providers to provide DCF & local licensing agencies with access for inspection purposes; requires certain child care providers to submit affidavit of compliance with licensure requirements of ch. 402, F.S., & federal law; provides criteria for exemption from disqualification for employment with school readiness program provider; revises duties of OEL; revises provisions relating to child & parent eligibility for school readiness programs.
HJR 7015 – Property Tax Assessment by Finance & Tax – READ 3RD TIME; PASSED THE HOUSE
Proposes amendment to State Constitution to allow Legislature to limit growth in assessed value of homestead & specified nonhomestead property to growth rate in just value & to prohibit increases in assessed value of homestead & specified nonhomestead property if just value of property decreases.
HB 7099 – Taxation by Finance & Tax – READ 3RD TIME; AMENDED; PASSED THE HOUSE
Revises certain documentary stamp tax provisions; specifies uses of community redevelopment agency redevelopment trust fund moneys for youth centers; revises provisions regarding payment of aerial photographs; expands exemptions & discounts from ad valorem taxes; revises excise taxes on certain aviation fuels; reduces tax on leasing of real property; authorizes credit of tax for certain resales; revises provisions regarding sales of certain aircraft; revises sales tax exemptions for a variety of entities & activities; adopts 2016 version of IRC; extends rehabilitation tax credits; extends renewable energy technology corporate income tax credits; revises due dates for partnership information & corporate tax returns; revises tax credits available for rehabilitation of certain drycleaning contaminated sites; specifies excise tax for cider made from pears; creates method of tax for certain alcoholic beverages & tobacco products; exempts certain items for specified periods from sales & use tax; provides finding of important state interest. [NOTE: The is the House tax cut package comprised of about $992 million in tax cuts derived from a wide range of permanent and temporary tax reductions and modifications.]
In the Senate Criminal & Civil Justice Appropriations Subcommittee:
SB 314 – Juvenile Justice by Diaz de la Portilla — PASSED
Revising the circumstances under which a state attorney may file an information when a child of a certain age range commits or attempts to commit specified crimes; revising the crimes and the age of a child who is subject to the jurisdiction of a circuit court; requiring the adult court to render an order including specific findings of fact and the reasons for its decision; removing a provision that requires a court to impose adult sanctions under certain circumstances, etc.
SB 436 – Terroristic Threats by Simpson – AMENDED; PASSED WITH A COMMITTEE SUBSTITUTE (CS)
Creating the crime of falsely reporting the use of firearms in a violent manner against a person or persons; defining the terms “family member of a person” and “law enforcement officer”; providing a criminal penalty for a violation of specified provisions under certain circumstances; requiring payment of restitution; reenacting ss. 1006.07(2)(m) and 1006.13(3)(b), F.S., relating to district school board duties relating to student discipline and school safety and a policy of zero tolerance for crime and victimization, respectively, to incorporate the amendment made to s. 790.163, F.S., in references thereto. [NOTE: The bill was substantially amended with a strike all amendment. This short summary reflects the changes made to the bill today. No changes were made to ss. ss. 1006.07(2)(m) and 1006.13(3)(b), F.S. Reenacting these sections ensures that these sections continue to be in effect with recognition of the changes made to s. 790.163, F.S.]
SB 700 – Juvenile Criminal History Records by Soto – AMENDED; PASSED WITH A CS
Specifying that certain confidential information obtained under chapter 985, F.S., relating to juvenile justice, is exempt from public records requirements; providing for future review and repeal of such applicability provisions; providing an exemption from public records requirements for juvenile information compiled by the Criminal Justice Information Program from intrastate sources; providing for future review and repeal of the exemption; providing a statement of public necessity, etc.
In the Senate Education Appropriations Subcommittee:
SB 268 – Bullying and Harassment Policies by Ring — PASSED
Requiring school districts to revise their bullying and harassment policy at specified intervals; requiring the policy to include mandatory reporting procedures and a list of authorized programs that provide bullying and harassment identification, prevention, and response instruction, etc.
SB 834 – Minimum Term School Funding by Detert — PASSED
Revising the term “full-time student” to delete references to membership in a double-session school or a school that uses a specified experimental calendar; clarifying how “full time equivalency” is calculated for students in schools that operate for less than the minimum term, etc.
SB 836 – Rapid Response Education & Training Program by Gaetz – AMENDED; PASSED WITH A CS
Establishing the Rapid Response Education and Training Program within the Complete Florida Plus Program; requiring the Complete Florida Plus Program to work with Enterprise Florida, Inc., to offer certain education and training commitments to businesses; requiring the Division of Career and Adult Education within the Department of Education to conduct an analysis and assessment of the effectiveness of the education and training programs, etc.
SB 894 – Education Personnel by Detert — PASSED
Authorizing certain employees or agents of the Department of Education to have access to certain reports and records; authorizing rather than requiring the Department of Education to sponsor a job fair meeting certain criteria; providing requirements regarding liability insurance for students performing clinical field experience; abrogating the scheduled expiration of the educator liability insurance program, etc.
SB 1026 – High School Athletics by Simmons – AMENDED; PASSED WITH A CS
Requiring the Florida High School Athletic Association (FHSAA) to allow a private school to join the association as a full-time member or to join by sport; prohibiting the FHSAA from discouraging a private school from maintaining membership in the FHSAA and another athletic association; authorizing the FHSAA to allow a public school to apply for consideration to join another athletic association; prohibiting the FHSAA from taking any retributory or discriminatory action against specified schools; authorizing the Commissioner of Education to identify other associations in compliance with specified provisions; providing a process for resolving student eligibility disputes. [NOTE: The bill was amended today to remove reference to fees and contest receipts collected by the FHSAA and reference to requiring the FHSAA to allow ANY school to join the FHSAA as a full-time member or on a per-sport basis. The short summary above reflects the changes made to the bill today.]
SB 1068 – Education / Reading Instruction by Legg – TEMPORARILY POSTPONED
Revising the duties of the Just Read, Florida! Office; revising requirements for school improvement plans and early warning systems; revising core curricula requirements for certain teacher preparation programs to include certain reading instruction and interventions; requiring candidates for an educator certificate in certain areas to demonstrate competence in specified areas, etc.
SB 1360 – Student Assessments by Gaetz — PASSED
Authorizing a district school board to choose to implement certain rigorous alternative assessment options by a certain school year; requiring each school district to annually notify students and parents of standard high school diploma requirements by a specified date; requiring a classroom teacher’s performance evaluation to be based on the performance of certain students, etc.
The Subcommittee also discussed proposed legislation relating to FEFP Local Funds and proposed legislation relating to Charter School Capital Outlay Funding. [NOTE: See the Charter School Capital Outlay section above for more information on this issue.]
In the Senate General Government Appropriations Subcommittee:
SB 1200 – Pay-for-success Contracts by Bean — PASSED
Requiring the Department of Management Services (DMS) to oversee a Pay-for-Success Contract Program; authorizing DMS, contingent upon funding, to negotiate and enter into contracts with private entities to fund high-quality programs; requiring an independent evaluator to determine whether performance measures in a contract have been met, etc.
SB 1206 – Auditor General by Abruzzo — PASSED
Requiring the Auditor General to annually conduct a performance audit of a randomly selected state agency, etc.
SB 1226 – Administrative Procedures by Ring — PASSED
Providing additional requirements for the calculation of estimated adverse impacts and regulatory costs, etc.
SB 1422 – Insurer Regulatory Reporting by Simmons – AMENDED; PASSED WITH A CS
Requiring an insurer to maintain a risk management framework; requiring certain insurers and insurance groups to conduct an own-risk and solvency assessment; requiring certain insurers and members of an insurance group to prepare and submit a corporate governance annual disclosure, etc.
SB 1538 – Veterans’ Employment by Evers — PASSED
Requiring each state agency and authorizing other political subdivisions of the state to develop and implement a veterans recruitment plan; requiring specified goals for veterans recruitment plans; requiring the Department of Management Services to collect specified data and to include the data in its annual workforce report and on its website, etc.
In the Senate Session:
Bills on 3rd Reading:
SB 2500 – 2016-2017 General Appropriations Act by Appropriations – READ 3RD TIME; SUBSTITUTED FOR HB 5001; SB 2500 LAID ON THE TABLE
HB 5001 – 2016-2017 General Appropriations Act by Appropriations – SUBSTITUTED FOR SB 2500; READ 2NDTIME; AMENDED; READ 3RD TIME; PASSED THE SENATE; IN RETURNING MESSAGES TO THE HOUSE
Providing moneys for the annual period beginning July 1, 2016, and ending June 30, 2017, and supplemental appropriations for the period ending June 30, 2016, to pay salaries and other expenses, capital outlay – buildings, and other improvements, and for other specified purposes of the various agencies of state government; providing for contingent retroactive operation, etc.
SB 2502– Implementing / 2016-2017 General Appropriations Act by Appropriations – READ 3RD TIME; SUBSTITUTED FOR HB 5003; SB 2502 LAID ON THE TABLE
HB 5003 – Implementing / 2016-2017 General Appropriations Act by Appropriations – SUBSTITUTED FOR SB 2502; READ 2ND TIME; AMENDED; READ 3RD TIME; PASSED THE SENATE; IN RETURNING MESSAGES TO THE HOUSE
Incorporating by reference certain calculations of the Florida Education Finance Program; revising the method for allocating funds for exceptional student education programs; extending the date by which the Adults with Disabilities Workforce Education Pilot Program may operate; authorizing a university board of trustees to expend certain reserve or carry forward balances from a prior year for specified capital outlay projects if certain conditions are met, etc.
SB 7042 – Florida Retirement System Contribution Rates by Governmental Oversight – READ 3RD TIME; SUBSTITUTED FOR HB 5005; SB 7042 LAID ON THE TABLE
HB 5005 – Florida Retirement System Contribution Rates by Appropriations – SUBSTITUTED FOR SB 7042; READ 2ND TIME; AMENDED; READ 3RD TIME; PASSED THE SENATE; IN RETURNING MESSAGES TO THE HOUSE
Revising required employer retirement contribution rates for each membership class and subclass of the Florida Retirement System, etc.
SB 500 – Children & Youth Cabinet by Montford – READ 2ND TIME; SUBSTITUTED FOR HB 241; SB 500 LAID ON THE TABLE
HB 241 – Children & Youth Cabinet by Harrell – SUBSTITUTED FOR SB 500; READ 2ND TIME; READ 3RD TIME; PASSED THE SENATE; PASSED THE LEGISLATURE
Revising the membership of the cabinet to include a superintendent, etc. [NOTE: Since SB 500 and HB 241 are identical, when the Senate substituted SB 500 for HB 241 and then passed HB 241, both chambers had passed an identical version of the bill and the bill, therefore, has passed the legislature.]
SB 962 – Vocational Rehabilitation by Gaetz – READ 3RD TIME; PASSED THE SENATE
Requiring the Division of Vocational Rehabilitation to initiate, by a specified date, a performance improvement plan designed to achieve specified goals; requiring the division to submit a performance report annually, by a specified date, to the Governor and the Legislature which includes specified information, etc.
SB 7016 – Interstate Compact / Military Children by Military Affairs – READ 3RD TIME; PASSED THE SENATE; IN MESSAGES TO THE HOUSE
Providing for payment of annual dues for the compact; repealing s. 2 of chapter 2013-20, Laws of Florida; abrogating the future repeal of provisions relating to the compact; providing for contingent retroactive operation, etc.
SB 350 – Online Procurement by Montford – READ 3RD TIME; PASSED THE SENATE; IN MESSAGES TO THE HOUSE
Revising the powers and duties of the district school board to authorize the adoption of rules regarding procurement practices; authorizing a district school board to use online procurement for certain services and purchases; authorizing each district school board, Florida College System board of trustees, and university board of trustees to make purchases through an online procurement system, etc.
COMING UP TOMORROW
There are no legislative meetings of interest scheduled for tomorrow. We will send you our Weekly Video Update and our next issue of the Daily Update on Monday, February 15.
I hope you find this information useful. Please let me know if you have any questions.