FLORIDA DEPARTMENT OF EDUCATION

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STATE BOARD OF EDUCATION

John L. Winn

F. PHILIP HANDY,

Chairman

T. WILLARD FAIR,

Vice Chairman

Members

DONNA G. CALLAWAY

ROBERTO MARTÍNEZ

PHOEBE RAULERSON

KATHLEEN SHANAHAN

MEMORANDUM

Date: March 13, 2006

To: District Superintendents

From: Cheri Pierson Yecke, Ph.D.

Subject: PECO Funding

At the September 20, 2005, meeting of the State Board of Education, Commissioner Winn presented

our Fixed Capital Outlay Legislative Budget Request for 2006-07. The basis was the estimate of the

March 7, 2005, Public Education Capital Outlay (PECO) Revenue Estimating Conference. Using this

base of $520 million, the share allocated to K-12 public schools was $210,681,105, to be used for

maintenance, repair, renovation, and remodeling of existing facilities, as well as new construction.

In November, the original estimates were revised upward to approximately $1.4 billion, and following

a recommended holdback of $150 million, the statutory allocation to K-12 public schools increased by

$303,607,590 to a total of $514,288,695.

Last week, the PECO Revenue Estimating Conference again revised its estimates of PECO funds to

$1.88 billion, producing another significant and unexpected increase in funds available for

appropriation; in this case, $480 million.

However, rather than share this increase among K-12 public schools, the state university system, and

community colleges, Commissioner Winn has decided to withhold action on a revised allocation

schedule. The class size constitutional amendment has placed a strain on our public school facilities,

and our current projections indicate that school districts will need approximately $4.2 billion to build

the 14,000 classrooms needed to ensure compliance by 2010-11. Therefore, the Commissioner is

looking to the legislature to consider a recommendation that this latest increase of $480 million be

allocated exclusively to K-12 public schools in order to meet the requirements of the class size

amendment.

I will keep you informed as the legislative session progresses.

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CHERI PIERSON YECKE, PH.D.

CHANCELLOR, K-12 PUBLIC SCHOOLS

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