John L. Winn
Commissioner of Education
FLORIDA DEPARTMENT OF EDUCATION
STATE BOARD OF EDUCATION
T. WILLARD FAIR,
Chairman
Members
DONNA G. CALLAWAY
DR. AKSHAY DESAI
ROBERTO MARTÍNEZ
PHOEBE RAULERSON
KATHLEEN SHANAHAN
LINDA K. TAYLOR
CONTACT
PERSON
NAME:
Cindy Greiwe
PHONE:
(850) 245-9245
SUNCOM:
205-9245
COEFO:
07-16
MEMORANDUM
DATE:
February 23, 2007
TO:
District School Superintendents
FROM:
Linda Champion
SUBJECT:
Qualified Zone Academy Bond Program (QZAB)
The Qualified Zone Academy Bond (QZAB) program has been extended through 2007. Florida’s allocation for
calendar year 2006 is $20,271,000 and $20,271,000 for calendar year 2007. Should your application be approved,
the approval grants authority to incur debt. The QZAB program is not a new funding source. Listed below is
information relevant to the program and application process. The program supports the mission of Florida’s K-20
education system to increase the proficiency of all students within one seamless, efficient system. Through this and
other modes of assistance, the Office of Educational Facilities supports the State Board of Education’s goal to
deliver quality, efficient services (Section 1008.31(3), Florida Statutes).
General Information on the Qualified Zone Academy Bond (QZAB) Program
•
?
QZABs are financial instruments that provide a different kind of subsidy in the form of tax credit to a bank or
other financial institution that holds the QZABs. The approved QZAB program is one in which states or local
governments are authorized to issue qualified zone academy bonds for use by a qualified zone academy.
Florida will allocate QZAB authority amounts to approved eligible district/Qualified Zone Academy projects,
but will not issue QZAB bonds.
•
?
The tax credits and bonding authority are made available by the federal government to support innovative
school partnerships, enhance reform initiatives including augmenting federal education programs, technology
and vocational equipment, and development of curriculum or teacher training to promote market-driven
technology. To become eligible, a school must be located in either a federally designated Empowerment
Zone or Enterprise Community, or have 35 percent or more of its students eligible for free or reduced lunch
under the National School Lunch Act, and have established a partnership with a business.
LINDA CHAMPION
?
DEPUTY COMMISSIONER, FINANCE AND OPERATIONS
?
325 W. GAINES STREET • SUITE 1214 • TALLAHASSEE, FL 32399-0400 • (850) 245-0406 • www.fldoe.org
Suncom 205-0406 • FAX (850) 245-9099
Memorandum
February 23, 2007
Page Two
•
?
The district will determine whether the purposes for which QZABs are issued conform to state law regarding
indebtedness; will obtain written agreements between a Qualified Zone Academy and one or more local
businesses that pledge contributions having a present value of at least 10 percent of the gross proceeds of the
QZAB; will work with the financial institution to issue the QZABs; and will be responsible for repayment of
the principal upon maturity. QZABs are considered debt incurred by the district and must be repaid.
–
?
School districts shall not use PECO or CO&DS bond proceeds to pay QZAB debt, but may use two-
mill funds, not bond proceeds, to repay QZAB debt.
–
?
If two-mill proceeds are proposed for repayment of QZAB debt, it shall not exceed the Certificates
of Participation limit established for two-mill in Section 1011.71, Florida Statute.
–
?
The state has not been authorized to issue or guarantee QZAB loans.
•
?
Florida has a total allocation of $20,271,000 for 2006 and $20,271,000 for 2007.
•
?
Archived information from the U.S. Secretary of Education regarding the QZAB program can be found at the
following website: http://www.ed.gov/offices/OVAE/qzabfin.html. Additional information and links can be
found on the Office of Educational Facilities website.
Application Procedures and Deadline
Complete the attached application and return it by March 31, 2007, to:
Cindy Greiwe
Florida Department of Education
325 W. Gaines Street
1004 Turlington Building
Tallahassee, Florida 32399-0400
This form can be downloaded from the Department of Education’s website at: http://www.firn.edu/doe/edfacil/.
Allocation Procedure
The Department will form a committee to review the applications and distribute the bonding authority based on the
quality of the proposed programs. Bonding authority will be allocated based on the quality of proposals and criteria
developed by the Department of Education. Applications received on or before March 31, 2007, will be reviewed.
Applications received after March 31, 2007, will not be considered as part of the review process.
Requests must contain a minimum of $1 million and a maximum of $5 million per district. Please do not request
more bonding authority than you can reasonably expect to repay or qualify for through a financial institution.
If you have additional questions, please call Cindy Greiwe at (850) 245-9245 (SUNCOM 205-9245).
LC/csg
Attachments
cc: District
Finance Officers
District Facilities Managers
