1. SBBC DEFP 1
FLORIDA LEGISLATURE ROBBING PETER TO PAY PAUL
Ramifications of State Legislation on Broward’s District Educational Facilities Plan
Julie Rada
Barry University
July 15, 2009

2. SBBC DEFP 2
Ramifications of State Legislation on Broward’s District Educational Facilities Plan
Prior to adoption of their annual capital outlay budget, school districts are required by
Florida Statute §1013.35 to prepare and adopt a District Educational Facilities Plan [DEFP]
(School Board of Broward County, Florida, 2008b). The DEFP is intended to serve as a tool for
keeping the school board, as well as the general public, fully informed. It is also meant to
promote utilization of sound policies and practices in meeting essential needs of students, and
demonstrate that public confidence in district operations is warranted.
The DEFP format begins with an overview of current economic climate and other factors
affecting projections, and an explanation of student enrollment projections (School Board of
Broward County, Florida, 2008b). It then addresses the School Board of Broward County’s
[SBBC] plans for compliance with class size reduction, a partially funded mandate, followed by
concurrency, an unfunded 2005 legislative mandate. Long term planning for concurrency
includes ILAs [intralocal agreements] for public school facility planning. These agreements are
intended to ensure coordination of efforts between school boards, municipalities and developers
to provide planning sufficient to effect the purpose of concurrency, i.e. that facilities are
available to serve a proposed development coincident with the community’s realization of that
development’s impact. Broward’s ILA includes the county, the school board and the 27
municipalities within the county.
Also preceding the projections section of the DEFP are discussions of the following areas
addressed in the plan: (1) indoor air quality; (2) new schools, capacity additions, remodeling and
renovations; (3) land acquisition and development; (4) relocatables [portables]; (5) technology;
(6) health and safety; (7) capital improvement program; (8) Americans with disabilities; (9)
equipment; and (10) debt service. An additional factor affecting Broward’s allocation of
resources is a settlement agreement between the district and Citizens Concerned about our

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Children (School Board of Broward County, Florida, 2008b). The intent of this agreement is to
ensure the promotion of diversity and equity within SBBC. For facilities, the implication is to
promote structural parity across the county.
Annual preparation of the DEFP begins with a review of the needs assessments
completed by the principal at each school. Other stakeholders providing input include area
superintendents and district departments whose functions are dependent upon the DEFP.
Additionally, the diversity committee and Facilities Task Force, both of which have
memberships consisting of volunteers, predominantly parents and private sector interests, are
afforded opportunity to provide their recommendations. School board members individually
meet with staff to rate their project preferences, followed by public workshops in accordance
with Sunshine standards. Review progresses to the parties of the ILA, and then on to public
hearings prior to formal adoption.
Ten sources of capital budget funding are itemized in the DEFP adopted 08-06-08 (2008).
First, the district may sell local bonds after voters authorize their issue. These funds may be used
for land acquisition; renovation, remodeling, or of expansion of existing facilities; new school
construction; and payment of issuance costs. Second, Capital Outlay Bond Issues (COBI) are
issued by the state solely for capital outlay purposes and repayment is from capital outlay and
debt service revenues. The source for the third vehicle is motor vehicle license revenue.
Allocated by the Office of Educational Facilities, Budgeting and Financial Management, these
are “Capital Outlay and Debt Service” funds that may be used in “acquiring, building,
constructing, altering, remodeling, improving, enlarging, furnishing, equipping, maintaining,
renovating, or repairing of capital outlay projects … for projects on the Project Priority List
presented to the State Department of Education” (School Board of Broward County, Florida,
2008b). COPs [Certificates of Participation], general funds via the sale of lease certificates are

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obtained and used to finance acquisition of land and new construction, and purchase of
equipment. Debt service is paid from capital millage proceeds. Next source: impact fees paid by
developers. Funds usage is tied to enrollment increases in the locus of the development, and
inures to the benefit of the service area in which the fees are collected. Expenditures for
construction or expansion of new facilities, site acquisition, or equipment are eligible for this
source of funding. The largest source of capital funding is the millage revenue collected through
ad valorem taxation. These funds may be used without restriction for authorized expenditures
within the capital budget. Gross utilities tax back PECO [Public Education and Capital Outlay]
funds whose permissible uses include debt service, remodeling, new construction, furniture and
equipment, sites, and library books. School Infrastructure Thrift [SIT] programs awards are
bonds issued from Florida Lottery. An incentive program encouraging “functional, frugal
facilities and practices”, (School Board of Broward County, Florida, 2008b), rewards up to 50
percent of the amount saved when districts realize cost savings in construction of educational
facilities. Class size reduction is a source of funding from the state’s general revenue.
Encumbrance authorization requires that the Department of Education determine and verify the
adequacy of district compliance with class size reduction legislation, and that the DEFP includes
all capital outlay revenue available to the district, among other conditions. The final source of
funding listed is FEMA disaster relief funds the district receives from state and federal revenue.
Approval process for SBBC’s 2009-2010 DEFP is approaching the public hearing stages.
The passage of Proposition I in January of 2008, together with other economic factors impacting
the state, and South Florida in particular, created challenges in preparation of the 2008-2009
DEFP. Additional budget reductions imposed by the state on SBBC appropriations have
exacerbated those challenges this year.
Adding to the loss of revenues caused by the housing market downturn, and increased

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property tax exemptions provided by “Save-Our-Homes” legislation, the state legislature’s
approved 2008-2009 budget reduced from 2.0 mills to 1.75 mills the amount a district can levy
for capital outlay. The .25 mills was redirected to the Florida Education Finance Program to
offset declining revenues in lieu of increasing taxes (School Board of Broward County, Florida,
2008b). Measures undertaken by SBBC to alleviate the impact of reduced appropriations in the
2008-2009 DEFP included the elimination of unfilled full time equivalent positions funded
through the capital budget, and removal of redundant and obsolete legacy projects from the five-
year plan. At a meeting of business interests in November, SBBC reported that the impact to the
DEFP was a net loss of $417 million for capital outlay projects (School Board of Broward
County, Florida, 2008a).
The legislature reduced capital outlay millage by an additional .25 mills to 1.5 mills in
May of 2009, resulting in a loss to SBBC, as well as other districts, of millions of dollars for
capital projects (School Board of Broward County, Florida, 2009). It also placed many districts
in jeopardy of losing their credit ratings by putting some districts below the debt service
benchmark set by rating agencies. Further exacerbating the situation, last year the state predicted
a 21.7% increase in property values over the next five years. The current state estimate is now a
19.8% decline over the same period, representing a net negative swing in the state’s projections
equaling 41.5%.
The table in Appendix A compares major revenue sources and appropriations in the
Tentative DEFP for fiscal years 2009-10 to 2013-14 (2009b) with the adopted DEFP for each of
the past four fiscal years (School Board of Broward County, Florida, 2008a) (2007) (2006)
(2005). Effectively the impact to the five-year plan is that the total capital program for 2009-
2010 is half of the $5.0 billion in the adopted 2008-2009 DEFP (School Board of Broward
County, Florida, 2009a).

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When it initiated the DEFP review process for this fiscal year [2009-2010], the office of
the chief financial officer advised staff that non-discretionary capital expenditures included $150
million per year for debt service, and $60 million for maintenance transfers and other fixed costs,
leaving $25 million available for essentials such as life safety, Americans with disabilities, and
indoor air quality. The directive indicated that $830 million would have to be cut from the DEFP
(Facilities Task Force).
The strategy employed to accomplish the reduction objective was to identify projects that
would fit into one of the following three categories: (1) fully funded, not under construction; (2)
partially funded, not under construction; and (3) not funded or under construction. Fully funded
projects would be completed (Facilities Task Force). Partially funded projects would be
reviewed to determine feasibility of performing work in phases, or whether it would be more
economically viable to cancel the contract and incur the penalty for payment of work performed
plus ten percent. Benchmarks were established for preservation of assets, life safety, indoor air
quality, and Americans with disabilities. The first public hearing on the tentative DEFP is
scheduled to occur on July 21, 2009.
Tax credit bonds are part of the Obama administration’s economic recovery package
(American Recovery and ReinvestmentTax Act of 2009). SBBC qualifies for up to $49,913,000
in allocations for 2009 (Roth) and has included the Quality School Construction Bonds as an
estimated revenue source in the 2009-2010 DEFP. The state’s decision to transfer millage from
capital to provide funds to the operating budget has severely impacted SBBC’s capital program.
Unless there is a reversal of that practice, or the district is able to participate in the stimulus
package, the closure of facilities and personnel layoffs that have been averted thus far will be
forced upon the district.

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References
American Recovery and ReinvestmentTax Act of 2009. (n.d.). Legislation: American recovery
and reinvestment tax act of 2009. Retrieved Jul 9, 2009, from Ed.gov:
http://www.ed.gov/print/policy/gen/leg/recovery/modernization/leg-arrta,html
Facilities Task Force. Facilities Task Force Minutes, Thursday, May 14, 2009.
Florida Department of Education. (n.d.). Class size: class size reduction amendment. Retrieved
Jul 11, 2009, from Florida department of education: http://www.fldoe.org/ClassSize/
Roth, A. M. (n.d.). Qualified school construction bond allocations for 2009. Retrieved Jul 5,
2009, from Florida Department of Education: http://www.fldoe.org/ARRA/pdf/taxQ.pdf
School Board of Broward County, Florida. (2008a, Nov 19). Business community meeting,
November 19, 2008. Retrieved Jul 11, 2009, from Office of chief financial officer,
Broward County Public Schools:
http://www.broward.k12.fl.us/comptroller/cfo/capbudget/capsys-doclinks.htm
Capital Millage Reduction June 2009 (2009a). [Motion Picture].
School Board of Broward County, Florida. (2008b). District Education Facilities Plan for fiscal
years 2008-2009 through 2012-2013. Ft. Lauderdale: School Board of Broward County,
Florida.
School Board of Broward County, Florida. (2005). District educational facailities plan for fiscal
years 2006-2007 through 2010-2100. Ft. Lauderdale: The School Board of Broward
County, Florida.
School Board of Broward County, Florida. (2004). District educational facilities plan for fiscal
years 2005-2006 through 2009-2010. Ft. Lauderdale: The School Board of Broward
County, Florida.
School Board of Broward County, Florida. (2007). District educational facilities plan for fiscal

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years 2007-2008 through 2011-2012. Ft. Lauderdale: The School Board of Broward
County, Florida.
School Board of Broward County, Florida. (2009). Tentative district educational facilities plan
for fiscal years 2009-2010 through 2013-2014. Retrieved Jul 11, 2009b, from Office of
chief financial officer, Broward County Public Schools:
http://www.broward.k12.fl.us/comptroller/cfo/capbudget/capsys_dodlinks.htm
State of Florida. (2008). The 2008 Florida Statutes: Title XLVIII, Chapter 1011. Retrieved July
11, 2009, from Statutes & Constitution: View Statutes:
http://www.flsenate.gov/STATUTES/index.cfm?p=2&App_mode=Display...&URL=Ch10
11/SEC69.HTM&Title=-%3ECh1011-%3ESection%2069

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Appendix A
Major Revenue Sources and Appropriations Comparison
Estimated 5-year Total
DEFP Millage COPs Appropriations
2005-2006 $1,523,542 $1,276,986 $2,988,941
2006-2007 $1,903,517 $1,253,139 $3,421,852
2007-2008 $1,959,646 $1,352,409 $3,530,424
2008-2009 $1,841,080 $1,006,097 $3,005,371
2009-2010 $1,108,355 $3,500 $1,274,992