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LEGISLATIVE UPDATES 2007 - 2008
 
 

Update #4

The legislative session just ended and more information will be forthcoming in the near future.  For now we can say the following: 

  1. No bills dealing with the Florida Retirement System (FRS) passed.  The DROP bill that was filed on FASA’s behalf also did not pass. 

  2. The entire session was focused on making billions of dollars worth of cuts to balance the budget.

  3. The Hillsborough school district sustained about $25 million dollars of cuts when taking into account that the Merit Awards Program (MAP) monies that were coming to Hillsborough were also cut.  This $25 million worth of cuts are counted from March, 2008.  Since the 2007 legislative session approved budget, Hillsborough has lots approximately $43 million. 

  4. The Tax and Budget Reform Committee, which meets every 20 years, has recommended to place on the November ballot a constitutional amendment that would eliminate the schools portion of the local property tax bill.  The amendment will propose that the revenue lost from the property taxes be replaced by other sources of revenue such as increasing the state sales tax, eliminating some exemptions to the sales tax, and looking at other taxes and fees. 

As soon as we hear more on this matter, we will forward it to you. 


Update #3

To:  Members of the Board Legislative Committee District Associations 

From:  M. Juhan Mixon & Associates,  Association Director, Governmental Affairs 

RE:      Governmental Issues 

The FASA Legislative Platform for 2008 has a wide range of issues.  Here are the primary issues: 

  •             Revision of class-size

  •             FCAT Administration

  •             Property Casualty Insurance

  •             District Staff Development

  •             Green Schools

  •             8-Year Drop

  •             Performance Pay into Base

This is a quick update on each.

Class-size

We have been working with Representative Simmons (R) Altamonte Springs, FEA and others to find a statutory solution to the constitutional issue of class-size.  FASA’s preference is to keep the school wide definition rather than the classroom level.  There has been some progress.   

FASA expects a bill to be filed by Rep. Simmons which will provide that school districts which have planned to meet the classroom level requirements, have rezoned or moved students to meet the requirements, but are still over the limit may for one year remain over the limit if it is educationally sound to do so. This will not reverse the Constitutional mandate; however, it will provide a safety valve allowing districts some flexibility as they work to meet the 2010-11 class-size standards. 

Even with this limited provision there maybe constitutional questions. 

Eight Year Drop 

This is the fifth year that we have promoted this issue.  The bills filed by Senator Wise, (R) Jacksonville, SB 998 and Representative Culp, (R) Tampa, HB 67 is similar to the one that passed the House of Representative last year.  If passed, school boards could extend drop to school administrators from 5 to 8 years on an annual basis.

This continues to be a very difficult issue.  FASA has been told that no retirement issues will pass this Session.  However, this bill has no financial impact on the state so we are working hard to move the issue forward.

Performance Pay/ Staff Development 

FASA is meeting with Legislators and staff to address these two issues in the Appropriations Bill.  We should have a clearer picture of the direction these issues will take prior to FASA Legislative Days in March.

Update #2 - January 18, 2008 

State Board of Administration News 

I attended a meeting of the Investment Advisory Council yesterday, and Gen. Bob Milligan who is temporarily replacing Coleman Stipanovich as Executive Director was sitting with the Council.  All the publicity which led to Coleman’s resignation was concerning the Local Government Investment Pool.  This fund generally had about $30 B before some investors became nervous about the failing mortgage companies and began withdrawing all their funds.  The SBA had approximately 3 percent of the fund invested with mortgage companies that went into default, and this 3 percent will eventually be recovered as companies are restructured and loans are collected.  The problem was created when investors made the rush to immediately liquidate all holdings and withdraw their funds.  Hopefully, things will gradually get back to normal for the local governments still affected. 

On a brighter note, the FRS Trust Fund had assets totaling $136.9 B as of 12/31/07.  That figure probably has come down a little this month with the falling stock market, but it shows that the mortgage crisis has not hurt our fund.  2007 was an excellent year of investment activity for this fund as it had assets of $128.6 B on 12/31/06.  We are very solvent. 

Legislative Session 08 

On legislative issues, Senator Fasano’s (R-New Port Richey) bill (S-396) proposing to close the FRS Pension Plan to all new employees beginning Jan. 1, 2009 has had no activity thus far.  Staff analysis of the bill has not been completed, but I feel it will show that this action would increase costs to employers rather than decrease costs as Sen. Fasano claimed.  At this time, no companion bill has been filed in the House. 

Senator Lawson (D-Tallahassee) has filed Senate bill 1032 to increase the Health Insurance Subsidy from $5 to $7 ($6 in Jan. 09 & $7 in Jan. 2010), but no companion bill has been filed in the House.  I do not plan to ask  either of Tallahassee’s two Representatives (Ausley and Richardson) to use one of their 6 bills for this purpose, but Rep. Allen from Merrit Island filed the companion bill last year, and he may do again.  There are several other bills (as usual) seeking special treatment for members of the Special Risk class, but the general feeling among legislative watchers here is that this legislature will pass no bills requiring additional funds. More to come as it develops. 

Larry Carmichael
Legislative Liaison for the Florida Retired Educators Association (FREA)

HASA and the twelve district members of the Tampa Bay Area Coalition of School Administrators Associations support the passage of the extension of the DROP as the first priority issue for the 2008 legislative session.  HASA also supports the passage of a bill that will increase the Health Insurance Supplement for all retirees from $5 to $7 for each year of service. 

Hillsborough’s School Board and the Florida School Board Association have identified the following five 2008 Legislative Platform Issues: 

  1. Continue to provide funding for the Merit Award Program.  The rationale for this is due to the extensive time and effort that has been spent on developing the plan across the state.
  2. Authorize school boards to designate certain Career and Technical Centers in their districts to be classified as “Technical Colleges”.  The rationale is that many other states have moved to this designation and this best reflects the requirements of the program.
  3. Provide additional funding to school districts from sources other than the education budget to pay for the capital outlay cost of emergency and disaster sheltering for new schools or for retrofitting existing facilities.  The rationale is that it is inappropriate to use education dollars for this function.
  4. Restore the option for students to earn one credit in either practical Arts, Fine Arts or a half-credit combination of both to the graduation requirements for a traditional 24 credit program.
  5. Modify Florida statute related to the Florida School of Excellence (FSE) alternate charter school authorizers to clarify that school districts have no financial or oversight responsibility to the school authorized by the DSE.

2008 Legislative Platform