Florida Department of Education
CONTACT PERSON NAME: Linda Champion PHONE: (850) 488-5142 SUNCOM: 278-5142 December 18, 2001 DPBM: 02-57 MEMORANDUM TO: District School Superintendents FROM: Wayne V. Pierson SUBJECT: Spending Flexibility Categorical Funding House Bill 13-C, Section 3, as enacted by the special session of the Legislature, grants flexibility to each school district for the 2001-2002 fiscal year to amend the district's operating budget by transferring funds from specific categorical programs. The school board is required to find and declare in a resolution adopted at a regular meeting that the funds received for any of the following programs are urgently needed to maintain board- specified academic classroom instruction. Under this resolution, the school board may consider and approve an amendment to the school district's 2001-2002 operating budget transferring the identified amount of funds. The categorical funds subject to such action are those appropriated for 2001-2002 for the following programs: Pupil Transportation, Specific Appropriation 121 Inservice Educational Personnel Training, Specific Appropriation 122 Safe Schools, Specific Appropriation 118 Public School Technology, Specific Appropriation 120A Teacher Recruitment Bonuses - Funding in excess of amount required for retention bonuses, Specific Appropriation 119 Teachers Lead funding in excess of the amount necessary for stipends, Specific Appropriation 122A. Carry-forward funds of this program may be used only after the district has first certified to the Department that every eligible teacher has received the stipend. Flexibility was also provided for the Supplemental Academic Instruction Program, Specific Appropriation 118. This authority allows for redirection of funds to academic classroom instruction for amounts previously budgeted for non-classroom instruction. The Act requires that each district report to the Department the amount of funds it transferred from each of the identified programs and the specific academic classroom instruction for which these funds were expended. This information is to be submitted by the Department to the Governor, the President of the Senate, and the Speaker of the House. The Department will provide the instructions and format for the district report which will be submitted with the district's 2001-2002 Annual Financial Report. Performance Pay Section 230.23(5)(c), F.S., requires the establishment of a reserve to fully fund 5 percent supplement for outstanding performance of school administrators and instructional personnel. Existing law requires this reserve to be established by June 30, 2002. House Bill 13-C provides for use of these funds to maintain board-specified classroom instruction in 2001-2002. Each district's 2002-2003 adopted school board budget must comply with Section 230.23(5)(c), F.S. Inter-Fund Loan Authority Section 236.13(2), F.S., provides authority for a school board to temporarily advance money from one fund to another fund when insufficient moneys are available to meet current obligations. These advances must be repaid within a thirteen-month period. The advancement must not restrict, impede, or limit implementation or fulfillment of the original purposes for which the moneys were received in the fund providing the advancement. Appropriate accounting records must be maintained. The USDA has determined that School Food Authorities (school districts) are not prohibited from making an internal loan of school food service funds for use in other school system operations. The stipulation is that 100 percent of such loans must be recovered. Any such advancement is to be made in accordance with Section 236.13(2), F.S. WVP:lrp cc: District Finance Officers

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