Florida Senate - 2019 SB 1198
By Senator Stargel
1 A bill to be entitled
2 An act relating to school board fiscal transparency;
3 amending s. 1002.33, F.S.; expanding provisions with
4 which charter schools are required to comply; amending
5 s. 1010.20, F.S.; revising requirements for school
6 districts’ reports to the Department of Education on
7 certain costs; amending s. 1011.035, F.S.; revising
8 the requirements for data and information that
9 district school boards must post on their respective
10 websites; amending s. 1011.051, F.S.; deleting a
11 requirement that superintendents reduce certain
12 expenditures under specified circumstances; deleting a
13 requirement that the department contract with certain
14 parties to conduct investigations under specified
15 circumstances; providing an effective date.
17 Be It Enacted by the Legislature of the State of Florida:
19 Section 1. Subsection (16) of section 1002.33, Florida
20 Statutes, is amended to read:
21 1002.33 Charter schools.—
22 (16) EXEMPTION FROM STATUTES.—
23 (a) A charter school shall operate in accordance with its
24 charter and shall be exempt from all statutes in chapters 1000
25 1013. However, a charter school shall be in compliance with the
26 following statutes in chapters 1000-1013:
27 1. Those statutes specifically applying to charter schools,
28 including this section.
29 2. Those statutes pertaining to the student assessment
30 program and school grading system.
31 3. Those statutes pertaining to the provision of services
32 to students with disabilities.
33 4. Those statutes pertaining to civil rights, including s.
34 1000.05, relating to discrimination.
35 5. Those statutes pertaining to student health, safety, and
37 (b) Additionally, a charter school shall be in compliance
38 with the following statutes:
39 1. Section 286.011, relating to public meetings and
40 records, public inspection, and criminal and civil penalties.
41 2. Chapter 119, relating to public records.
42 3. Section 1003.03, relating to the maximum class size,
43 except that the calculation for compliance pursuant to s.
44 1003.03 shall be the average at the school level.
45 4. Section 1012.22(1)(c), relating to compensation and
46 salary schedules.
47 5. Section 1012.33(5), relating to workforce reductions.
48 6. Section 1012.335, relating to contracts with
49 instructional personnel hired on or after July 1, 2011.
50 7. Section 1012.34, relating to the substantive
51 requirements for performance evaluations for instructional
52 personnel and school administrators.
53 8. Section 1010.20, relating to cost accounting and
54 reporting for school districts.
55 9. Section 1011.035, relating to school district budget
57 (c) For purposes of subparagraphs (b)4.-7.:
58 1. The duties assigned to a district school superintendent
59 apply to charter school administrative personnel, as defined in
60 s. 1012.01(3)(a) and (b), and the charter school governing board
61 shall designate at least one administrative person to be
62 responsible for such duties.
63 2. The duties assigned to a district school board apply to
64 a charter school governing board.
65 3. A charter school may hire instructional personnel and
66 other employees on an at-will basis.
67 4. Notwithstanding any provision to the contrary,
68 instructional personnel and other employees on contract may be
69 suspended or dismissed any time during the term of the contract
70 without cause.
71 Section 2. Effective July 1, 2019, and upon the expiration
72 and reversion of the amendment to section 1010.20, Florida
73 Statutes, pursuant to section 8 of chapter 2018-5, Laws of
74 Florida, subsection (2) of section 1010.20, Florida Statutes, is
75 amended to read:
76 1010.20 Cost accounting and reporting for school
78 (2) COST REPORTING.—
79 (a) Each district shall report on a district-aggregate
80 basis expenditures for inservice training pursuant to s.
81 1011.62(3) and for categorical programs as provided in s.
83 (b) Each district shall report to the department on a
84 school-by-school and on a district-aggregate
85 district basis all of the following expenditures for:
86 1. Expenditures for each program funded in s.
88 2. Total operating costs provided in “School District
89 Program Cost Reports,” by category as reported pursuant to s.
90 1010.215(4)(a) and (b), including subtotals for direct and
91 indirect costs, total school costs, and total program costs s.
93 3. Total costs Expenditures for classroom instruction as
94 defined pursuant to the calculation in s. 1010.215(4)(b)1. and
95 2. and as provided in “School District Program Cost Reports.”
96 (c) The department shall:
97 1. Categorize all public schools and districts into
98 appropriate groups based primarily on average full-time
99 equivalent student enrollment as reported on the most recent
100 student membership survey under s. 1011.62 and may categorize
101 schools by school type, age of facility, and any other category
102 that equalizes cost comparability and i n state board rule to
103 determine groups of peer schools and districts.
104 2. Annually calculate for each public school, district, and
105 for the entire state, the percentage of total costs for
106 classroom instruction expenditures to total operating costs as
107 provided expenditures reported in subparagraphs (b)2. and 3. For
108 schools, this means school direct classroom instruction costs
109 plus instructional support costs divided by total school costs.
110 For school districts, this means total direct costs plus total
111 school and district instructional support costs divided by total
112 program costs. The results must shall be categorized pursuant to
113 this paragraph.
114 3. Annually calculate for all public schools, districts,
115 and the state, the average percentage of total direct school
116 costs classroom expenditures to total school costs operating
117 expenditures reported in subparagraphs (b)2. and 3. The results
118 shall be categorized pursuant to this paragraph.
119 3. 4. Develop a web-based fiscal transparency tool that
120 combines and compares academic achievement and the percentage of
121 funds spent on classroom instruction for all identifies public
122 schools and districts that produce high academic achievement
123 based on the calculations the ratio of classroom instruction
124 expenditures to total expenditures. The fiscal transparency tool
125 shall combine the data calculated pursuant to this paragraph and
126 with the student performance measurements calculated pursuant to
127 s. 1012.34(7) to determine the financial efficiency of each
128 public school and district. The results shall be displayed in an
129 easy to use format that enables the user to compare performance
130 among public schools and districts.
131 (d) The Commissioner of Education shall present to the
132 Legislature, prior to the opening of the regular session each
133 year, a district-by-district report of the costs expenditures
134 reported pursuant to paragraphs (a) and (b). The report shall
135 include total costs expenditures, a detailed analysis showing
136 costs expenditures for each program, and such other data as may
137 be useful for management of the education system. The
138 Commissioner of Education shall also compute cost factors
139 relative to the base student allocation for each funded program
140 in s. 1011.62(1)(c).
141 Section 3. Effective July 1, 2019, and upon the expiration
142 and reversion of the amendment to section 1011.035, Florida
143 Statutes, pursuant to section 12 of chapter 2018-5, Laws of
144 Florida, subsection (2) of section 1011.035, Florida Statutes,
145 is amended to read:
146 1011.035 School district budget transparency.—
147 (2) Each district school board shall post on its website a
148 plain language version of each proposed, tentative, and official
149 budget which describes each budget item in terms that are easily
150 understandable to the public and, in addition, includes:
151 (a) Graphical representations, For each public school
152 within the district and for the school district, as appropriate,
153 of the following:
154 1. Summary Financial efficiency information calculated
155 pursuant to s. 1010.20 with a link to the web-based fiscal
156 transparency tool developed by the department data.
157 2. Fiscal trend information for the previous 3 years on:
158 a. The ratio of full-time equivalent students to full-time
159 equivalent instructional personnel, as defined in s. 1010.215.
160 b. The ratio of full-time equivalent students to full-time
161 equivalent administrative personnel, as defined in s. 1010.215.
162 c. The total operating expenditures, as calculated pursuant
163 to s. 1010.20(2), per full-time equivalent student.
164 d. The total instructional expenditures, as calculated
165 pursuant to s. 1010.20(3), per full-time equivalent student.
166 e. The general administrative expenditures as a percentage
167 of total budget, which is the inverse of total costs for
168 classroom instruction as a percentage of total operating costs
169 calculated in s. 1010.20.
170 f. The rate of change in the general fund’s ending fund
171 balance not classified as restricted, expressed as the financial
172 condition ratio, which is the fund balance as a percentage of
173 total general fund revenues.
174 (b) A link to the web-based fiscal transparency tool
175 developed by the department pursuant to s. 1010.20 to enable
176 taxpayers to evaluate the financial efficiency of the school
177 district and compare the financial efficiency of the school
178 district with other similarly situated school districts.
180 This information must be prominently posted on the school
181 district’s website in a manner that is readily accessible to the
183 Section 4. Effective July 1, 2019, and upon the expiration
184 and reversion of the amendment to section 1011.051, Florida
185 Statutes, pursuant to section 13 of chapter 2018-5, Laws of
186 Florida, section 1011.051, Florida Statutes, is amended to read:
187 1011.051 Guidelines for general funds.—The district school
188 board shall maintain a general fund ending fund balance that is
189 sufficient to address normal contingencies.
190 (1) If at any time the portion of the general fund’s ending
191 fund balance not classified as restricted, committed, or
192 nonspendable in the district’s approved operating budget is
193 projected to fall below 3 percent of projected general fund
194 revenues during the current fiscal year, the superintendent
195 shall provide written notification to the district school board
196 and the Commissioner of Education. If such financial condition
197 exists for 2 consecutive fiscal years, the superintendent shall
198 reduce the district’s administration expenditures reported
199 pursuant to s. 1010.215(4)(a) in proportion to the reduction in
200 the general fund’s ending balance or the reduction in student
201 enrollment, whichever is greater.
202 (2) (a) If at any time the portion of the general fund’s
203 ending fund balance not classified as restricted, committed, or
204 nonspendable in the district’s approved operating budget is
205 projected to fall below 2 percent of projected general fund
206 revenues during the current fiscal year, the superintendent
207 shall provide written notification to the district school board
208 and the Commissioner of Education. Within 14 days after
209 receiving such notification, if the commissioner determines that
210 the district does not have a plan that is reasonably anticipated
211 to avoid a financial emergency as determined pursuant to s.
212 218.503, the commissioner shall appoint a financial emergency
213 board that shall operate under the requirements, powers, and
214 duties specified in s. 218.503(3)(g).
215 (b) If any of the conditions identified in s. 218.503(1)
216 existed in the 2015-2016 school year or thereafter, the
217 department shall contract with an independent third party to
218 conduct an investigation of all accounts and records to
219 determine the cause of the deficit; what efforts, if any, were
220 made to avoid the deficit; and whether any of the conditions
221 identified in s. 1011.10 have occurred. The investigation must
222 include a detailed review and analysis of documents and records,
223 including, but not limited to, budget reports, journal entries,
224 budget methodologies, staff emails, hard copy records, monthly
225 financial statements, quarterly revenue and expenditure reports,
226 finance staff job descriptions, and minutes from meetings. The
227 results of the investigation must include recommendations for
228 corrective action and controls to avoid a reoccurrence of a
229 future budget shortfall. A final report shall be provided to the
230 district school board, the department, the Legislative Auditing
231 Committee, and the district’s financial emergency board, if
233 Section 5. This act shall take effect July 1, 2019.