1. CONTACT PERSON NAME: Cindy Greiwe
      2. PHONE: (850) 245-9245 SUNCOM: 205-9245 COEFO: 08-22
  1. MEMORANDUM

FLORIDA DEPARTMENT OF EDUCATION
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STATE BOARD OF EDUCATION
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Dr. Eric J. Smith
Commissioner 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:
08-22

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MEMORANDUM
DATE:
February 15, 2008
TO:
District School Superintendents
FROM:
Linda Champion
SUBJECT:
Qualified Zone Academy Bond Program
The Qualified Zone Academy Bond (QZAB) program has been extended through 2007. Florida received
allocations in the amount of $20,271,000 for the 2006 calendar year and $20,271,000 for the 2007
calendar year. Should your application be approved, the approval grants authority to issue bonds under
the provisions of this program. 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
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QZABs are financial instruments that provide a subsidy in the form of tax credits 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.
LINDA CHAMPION
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DEPUTY COMMISSIONER, FINANCE AND OPERATIONS
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325 W. GAINES STREET • SUITE 1214 • TALLAHASSEE, FL 32399-0400 • (850) 245-0406 • www.fldoe.org
Suncom 205-0406 • FAX (850) 245-9099

Qualified Zone Academy Bond Program
February 15, 2008
Page 2
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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; purchase technology and vocational equipment; and develop curricula or provide 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-price lunch under the National School Lunch Act.
In addition, eligible school districts must have an established partnership with a private business.
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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.
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School districts shall not use PECO or CO&DS bond proceeds to pay QZAB debt, but may
use two-mill funds to repay QZAB debt.
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If two-mill proceeds are proposed for repayment of QZAB debt, these proceeds shall not
exceed the Certificates of Participation limit established for two-mill revenues in Section
1011.71, Florida Statutes.
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The State has not been authorized to issue or guarantee QZAB loans.
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Of Florida’s 2006 allocation, $13,170,010 was allocated to four school districts during the 2007
application cycle, leaving an unallocated balance of $7,100,990 for 2006 and $20,271,000 for 2007.
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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
http://www.fldoe.org/edfacil/oef/federalbond.asp.
Application Procedures and Deadline
Complete the attached application and return it by April 30, 2008, 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 Office of Educational Facilities’ website at:
http://www.fldoe.org/edfacil/oef/federalbond.asp.

Qualified Zone Academy Bond Program
February 15, 2008
Page 3
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
April 30, 2008, will be reviewed. Applications received after April 30, 2008, will not be considered.
Requests must contain a minimum of $1 million in projects per district. For this application cycle only,
the $5 million maximum per district is being waived. 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:
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District Finance Officers
District Facilities Managers

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