FSBA Session Spotlight — March 27, 2019

Today, the House and Senate Appropriations committees will take up their proposed budgets, implementing bills, and conforming bills and will consider any amendments to them. We have prepared a side-by-side comparison of the education funding portions of the House and Senate appropriations bills as they stand today before consideration by the Appropriations Committee meetings. Please note that, while there were no amendments filed to the House budget and related budget bills, more than 130 amendments were filed to the Senate budget bill so this comparison is really just the starting point.  We will update our comparison as soon as possible after today’s meetings.  In the meantime, our original comparison is available HERE and also posted on our 2019 Legislative Session page along with other education budget information (and THANK YOU to sharp eyed readers who found a few mistakes that we have been able to correct).  In addition to this important work, the House will also consider its school safety bill — HB 7093 – and its school choice bill — HB 7075.  Both chambers will also hold floor sessions in which bills relating to public records, government accountability, and impact fees will be considered on 2^nd or 3^rd Reading.  Today’s action-packed schedule is posted below and is updated to show the outcome on these bills after each meeting concludes.

[toggle title=”Committee/Subcommittee Meetings – March 27, 2019“]

Please note that all of the meetings listed below may be viewed in real time via live webcast on the Florida Channel or may be viewed later in the Florida Channel Video Library. Also note that:

• Clicking on the Committee/Subcommittee names linked below provides access to membership, meeting packets, and other committee information
• Clicking on the PCBs linked below provides access the actual text of the proposed bill
• Clicking on the bill numbers linked below, you can access the bill summary, analysis, related bills, and other information

In the House Appropriations Committee:
HB 5101 – Education Funding (Conforming Bill) by PKA – PASSED
The bill conforms applicable statutes to the appropriations provided in the House proposed General Appropriations Act for Prekindergarten through grade 12 education for Fiscal Year 2019-2020. The bill:

• Modifies current school choice scholarship programs by:
  • Revising the calculation methodology for scholarship award amount for the Florida Tax Credit Scholarship and the Hope Scholarship Programs;
  • Allowing eligible nonprofit scholarship-funding organizations (SFOs) to use eligible contributions received pursuant to ss. 212.099, 212.1832, 1002.395, and 1002.40, F.S., during the fiscal year for administrative expenses and specifying that such expenses may not exceed 3% of the total amount of all scholarships awarded by the SFOs under chapter 1002, F.S.
  • Limiting the amount of contributions for the Hope Scholarship Program that an eligible nonprofit SFO may carry forward up to 5% of net eligible contributions with any contributions in excess of the 5% carry forward required to be transferred to another eligible nonprofit SFO or if another SFO does not participate in the Hope Scholarship Program, the eligible contributions may be used to fund Florida Tax Credit scholarships.
  • Prioritizing the recipients awarded a Florida Tax Credit scholarship beginning in Fiscal Year 2019-2020.
  • Renaming the Florida Sales Tax Credit Scholarship Program and requiring the use of the contributions to fund Florida Tax Credit scholarships.
• Modifies certain allocations funded in the Florida Education Finance Program (FEFP) by:
  • Deleting the requirement that school districts with one or more of the 300 lowest-performing elementary schools on the statewide reading assessment use their Supplemental Academic Instruction allocation on an additional hour each day of intensive reading instruction.
  • Making the above-mentioned requirement permissive rather than mandatory for the Research-based Reading Instruction allocation.
  • Requiring the Office of Economic and Demographic Research to develop each school district’s wage level index for purposes of calculating the district cost differential.
  • Including the Florida best and brightest teacher allocation and the Florida best and brightest principal allocation in the calculation of the Virtual Education Contribution.
• Modifies the Florida Best and Brightest Teacher Scholarship Program by:
  • Deleting the provision of the program that provides a $6,000 award for classroom teachers who are rated “highly effective” and who scored at or above the 80th percentile nationally on either the SAT or the ACT at the time the assessment was taken; and
  • Increasing the yearly bonuses to $2,000 for each classroom teacher rated “highly effective” and up to $1,100 for each classroom teacher rated “effective”.

HB 7075 – School Choice by Education — PASSED
The bill:

Establishes the Family Empowerment Scholarship Program (FESP) to provide parents of eligible students a scholarship to attend an eligible private school.

• Sets income limitations for eligibility for the program at 300% of the federal poverty level (FPL) for the 2019-2020 school year, 325% of the FPL for the 2020-2021 school year, 350% of the FPL for the 2021-2022 school year, and 375% of the FPL beginning with the 2022-2023 school year and thereafter.
• Establishes a scholarship amount for the FESP which is based on grade level and is 97% percent of the district average funding per FTE. The scholarship amounts for the HSP and the FTC programs are revised to reflect this new amount.
• Revises the FTC Program to limit eligibility to students who were not awarded a state scholarship and who meet income limitations, removes the limitation that the transportation scholarship for public school students can only be used for transportation to a public school or lab school outside of the school district, and eliminates the tiered scholarship amounts for students whose household income exceeds 185% of the FPL, but less than 260% of the FPL.
• Requires the annual report on the academic performance of students participating in FTC to also include students participating in HSP and FESP.
• Maintains the priority use of sales tax credits for FTC scholarships by removing the priority for Gardiner scholarships that would have been effective next fiscal year.
• Allows contributions by purchasers of motor vehicles to be used for FTC scholarships in addition to Hope scholarships.

HB 7093 – School Safety by Education – PASSED
The bill:

• Expands access to school guardians by allowing private schools and charter schools to employ school guardians (either directly or by contract) and allows the Criminal Justice Standards & Training Commission (CJSTC) certified law enforcement academies and school districts that employ school resource officers (SROs), in addition to sheriffs, to offer the school guardian training program as established by the CJSTC.
• Increases the ability of the Office of Safe Schools (Office) within the FDOE to enforce school safety by allowing the Education Practices Commission to fine superintendents, school board members, and school personnel for noncompliance as determined by the Office.
• Requires the Office to determine the types of schools and campuses that need a safe-school officer and determine the number and type of emergency drills.
• Increases information sharing among schools and school districts by requiring schools to transfer student records, including mental and behavioral records maintained by the school, within one business day if within the district and within two business days if outside of the district.
• Requires schools to consult with law enforcement when an act poses a threat to school safety.
• Requires schools to screen or assess within 45 days, students who are referred for mental assistance. School-based interventions must occur within 30 days of the screening and continue until the student receives community based care, where appropriate.
• Provides that, when a student transfers to a different school, the threat assessment team must verify that any intervention services remain in place until the threat assessment team of the receiving school independently determines the need for intervention services.
• Allows school districts to use their Fiscal Year 2018-2019 Safe Schools Allocation (SSA) to acquire safe-school officers.
• Beginning in Fiscal Year 2019-2020, revises the methodology for distributing the SSA by requiring a minimum amount to be distributed to each school district with the remaining balance allocated based on each school district’s proportionate share of the total full-time equivalent student enrollment.
• Provides that the priority use of the SSA is funding safe-school officers, instead of solely SROs, which allows school districts and charter schools to use the funds for school guardians.

PCB APC 19-01 – General Appropriations Act – PASSED
The bill provides moneys for the annual period beginning July 1, 2019, and ending June 30, 2020, and supplemental appropriations for the period ending June 30, 2019. (See our Side-by-Side Comparison of the education related portions of this bill).

PCB APC 19-02 – Implementing the 2019-20 General Appropriations Act – PASSED
The bill provides the statutory authority necessary to implement and execute the General Appropriations Act (GAA) for Fiscal Year 2019-2020. The statutory changes are effective for only one year and either expire on July 1, 2020 or revert to the language as it existed before the changes made by the bill. To implement provisions relating to PreK-12 education, the bill:

• Incorporates the Florida Education Finance Program (FEFP) work papers by reference for the purpose of displaying the calculations used by the Legislature.
• Provides that funds provided for instructional materials shall be released and expended as required in the proviso language attached to Specific Appropriation 93.
• Specifies that no section of the bill shall take effect if the appropriations and proviso to which it relates are vetoed.
• Provides that a permanent change made by another law to any of the same statutes amended by this bill will take precedence over the provision in this bill.

PCB APC 19-04 – State-Administered Retirement Systems – PASSED
The bill establishes the employer contribution rates for the normal costs and the unfunded actuarial liability (UAL) of the FRS, as determined by the July 1, 2018 Annual Valuation, necessary to adequately fund the program. The normal and UAL rates were ‘blended’ with the investment plan allocations and salaries to establish employer contribution rates. The proposed employer contributions for fiscal year 2019-2020 compared to the rates currently in effect. The cost of the adjusted contribution rates for school districts is projected to be about $35 million statewide.

In the Senate Session:
SB 186 – Public Records/Victim of Mass Violence by Lee – READ 3^RD TIME; AMENDED; PASSED; PASSED THE SENATE
The bill expands an existing public records exemption to make confidential and exempt from public disclosure any photographs and video and audio recordings that depict or record the killing of a victim of mass violence.

SB 7014 – Government Accountability by GOA – READ 3^RD TIME; PASSED; PASSED THE SENATE
The bill amends various statutes to enhance government accountability and auditing processes based on recommendations noted in recent reports by the Auditor General. Of interest to school districts, the bill:

• Authorizes the Governor or Commissioner of Education, or designee, to notify the Joint Legislative Auditing Committee if an entity fails to comply with certain auditing and financial reporting requirements;
• Provides definitions for the terms “abuse,” “fraud,” and “waste;”
• Requires each agency, the judicial branch, the Justice Administrative Commission, state attorneys, public defenders, criminal conflict and civil regional counsel, capital collateral regional counsel, the Guardian Ad Litem program, local governmental entities, charter schools, school districts, Florida College System institutions, and state universities to establish and maintain internal controls designed to prevent and detect fraud, waste, and abuse;
• Provides that the Department of Financial Services may request additional information from local government entities when preparing its annual verified report;
• Revises the membership, and restrictions thereof, for an auditor selection committee of a county, municipality, special district, district school board, charter school, or charter technical career center;
• Specifies that the definition of fraud, waste and abuse set forth in bill apply to s. 1001.42, F.S., relating to the powers and duties of the district school board;
• Requires completion of an annual financial audit of the Florida Virtual School; and
• Requires the Florida College System and Florida State University System to comply with s. 110.1127, F.S., for employee background screenings

In the Senate Appropriations Committee:
SB 2500 – Appropriations – AMENDED; PASSED
The bill provides moneys for the annual period beginning July 1, 2019, and ending June 30, 2020, and supplemental appropriations for the period ending June 30, 2019. The Committee approved several amendments to the education sections of the budget but none that impacted FEFP funding.  Approved amendments adjusted funding for early learning programs, several non-FEFP programs and services, State Board of Education funding, and post-secondary programs and services.  We will update our education budget comparison as soon as possible, but in the meantime, please see our current Side-by-Side Comparison of the education related portions as a point of reference.

SB 2502 – Implementing the 2019-20 General Appropriations Act — PASSED
The bill provides the statutory authority necessary to implement and execute the General Appropriations Act (GAA) for Fiscal Year 2019-2020. The statutory changes are effective for only one year and either expire on July 1, 2020 or revert to the language as it existed before the changes made by the bill. To implement provisions relating to PreK-12 education, the bill:

• Incorporates the Florida Education Finance Program (FEFP) work papers by reference for the purpose of displaying the calculations used by the Legislature.
• Provides that funds provided for instructional materials shall be released and expended as required in the proviso language attached to Specific Appropriation 93.
• Amends s. 1001.292, F.S., to remove the provision allowing undisbursed funds for Schools of Hope to be carried forward for up to 5 years. Any undisbursed funds would be reverted at the end of the fiscal year. Funding for each year would be provided annually in the appropriations act.
• Amends s. 1002.333, F.S., to remove the traditional public school component from the Schools of Hope legislation, including the $2,000 per FTE funding, and the provision allowing undisbursed funds to be carried forward for up to 5 years. Any undisbursed funds would be reverted at the end of the fiscal year. Funding for each year would be provided annually in the appropriations act.
• Amends s. 1003.64, F.S., to create the Community School Grant Program to support the planning and implementation of community school programs. In prior years, the initiative was funded as a legislative project.
• Amends s. 1008.33, F.S., to add that a district-managed turnaround plan may include extended day or a summer program.
• Amends s. 1011.62, F.S., to include the new Best and Brightest Teacher and Principal Allocation in the Virtual Education Contribution; removes the proration requirement for the Federally Connected Student Supplement so that the school districts can be fully funded for the supplement; modifies the formula for the Safe Schools Allocation funds to align more closely with school security needs; maintains the funding compression allocation within the FEFP to provide additional funding for school districts whose total funds per FTE in the prior year were less than the statewide average; adds The Best and Brightest Teacher and Principal Allocation within the FEFP (see also sections 17 and 18 of the bill); and adds the Turnaround School Supplemental Services Allocation within the FEFP.
• The Turnaround School Supplemental Services Allocation provides schools with $500 per-FTE, or as otherwise provided in the GAA, to offer services designed to improve the overall academic and community welfare of the school’s students and families. Schools implementing a turnaround option may receive funding from the allocation for a maximum of four continuous fiscal years. A school that exits turnaround with a grade of “C” or higher will remain eligible to receive the allocation for a maximum of two continuous fiscal years after exiting turnaround status.
• Amends s. 1011.80, F.S., to remove the $15 million annual performance funding appropriation limit for industry certifications for school district workforce education programs. As a result, school districts may be fully funded for earned certifications, subject to legislative appropriation
• Amends s. 1012.731, F.S., to revise the criteria for a teacher to qualify for an award under The Florida Best and Brightest Teacher program. New teachers who are content experts in mathematics, science, computer science, reading, or civics can receive a one-time recruitment award. Teachers rated as highly effective or effective can receive a retention award if they teach in a school demonstrating improvement. Highly effective teachers can also receive a recognition award if the teacher is selected by his or her principal based on performance criteria adopted by the district school board.
• Amends s. 1012.732, F.S., to revise the criteria for a principal to qualify for an award under The Florida Best and Brightest Principal program. Principals who are employed in schools that demonstrate improvement are eligible to receive an award.
• Amends s. 1013.62, F.S., to revise language relating to charter school capital outlay funding. Specifically, the revision provides that charter school capital outlay funding for Fiscal Year 2019-2020 will consist of state funds appropriated by the Legislature in the GAA (at a level of funding identified in the GAA). This change also removes the requirement that districts must share local millage revenues for Fiscal Year 2019-2020.
• Specifies that no section of the bill shall take effect if the appropriations and proviso to which it relates are vetoed.
• Provides that a permanent change made by another law to any of the same statutes amended by this bill will take precedence over the provision in this bill.

SB 7016 – State-administered Retirement Systems — PASSED
The bill establishes the contribution rates paid by employers participating in the Florida Retirement System (FRS) beginning July 1, 2019. These rates are intended to fund the full normal cost and the amortization of the unfunded actuarial liability of the FRS. With these modifications to employer contribution rates, the FRS Trust Fund will receive roughly $123.3 million more in revenue on an annual basis beginning July 1, 2019. The public employers that will incur these additional costs are state agencies, state universities and colleges, school districts, counties, municipalities, and other governmental entities that participate in the FRS. The cost of the adjusted contribution rates for school districts is projected to be about $35 million statewide.

SB 144 – Impact Fees by Gruters – PASSED
The bill prohibits local governments from requiring the payment of impact fees prior to issuing a property’s building permit. The bill also codifies the ‘dual rational nexus test’ for impact fees, as articulated in case law. This test requires an impact fee to have a reasonable connection, or rational nexus, between the proposed new development and the need and the impact of additional capital facilities, and the expenditure of funds and the benefits accruing to the proposed new development.  Additionally, the bill requires any impact fee ordinance earmark impact fee funds for capital facilities that benefit new residents and prohibits the use of impact fee revenues to pay existing debt unless specific conditions are met.

In the House Session:
HB 207 – Impact Fees by Donalds – READ 2^ND TIME; READ 3^RD TIME; PASSED; PASSED THE HOUSE
The bill prohibits any local government from requiring payment of impact fees any time prior to issuing a building permit. The bill codifies the requirement for impact fees to bear a rational nexus both to the need for additional capital facilities and to the expenditure of funds collected and the benefits accruing to the new construction. Local governments will be required to designate the funds collected by the impact fees for acquiring, constructing, or improving the capital facilities to benefit the new users. Impact fees collected by a local government may not be used to pay existing debt or pay for prior approved projects unless such expenditure has a rational nexus to the impact generated by the new construction.

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