5. CONTACT PERSON
    6. NAME: Cindy Greiwe
    7. PHONE: (850) 245-9245
    8. COEFO: 09-03
    10. MEMORANDUM
    11. DATE: April 17, 2009
    12. TO: District School Superintendents
    13. FROM: Linda Champion
    14. SUBJECT: Qualified Zone Academy Bond Program
    15. The Qualified Zone Academy Bond (QZAB) program has been extended through 2010. Florida received allocations in the amount of $21,607,000 for the 2008 calendar year and $75,623,000 for the 2009 calendar year. An unallocated balance of $7,371,990 remains for the calendar year 2007. The 2007 bonds must be issued by December 31, 2009. The allocations for 2010 will be announced later this 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).
    16. General Information on the Qualified Zone Academy Bond (QZAB) Program
    17.  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.
    18. Qualified Zone Academy Bond Program
    19. April 17, 2009
    20. Page 2
    21.  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.
    22.  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
    23. incurred by the district and must be repaid.
    24. – School districts shall not use PECO or CO&DS bond proceeds to pay QZAB debt, but may use district school tax funds to repay QZAB debt.
    25. – If district school tax proceeds are proposed for repayment of QZAB debt, these proceeds shall not exceed the Certificates of Participation limit established for district school tax revenues in Section 1011.71, Florida Statutes.
    26. – The State has not been authorized to issue or guarantee QZAB loans.
    27.  Of Florida’s $20,271,000 allocation for 2007, $12,899,010 was allocated to two school districts during the 2008 application cycle, leaving an unallocated balance of $7,371,990.
    28.  Archived information and links can be found on the Office of Educational Facilities’ Web site http://www.fldoe.org/edfacil/oef/federalbond.asp.
    29. Application Procedures and Deadline
    30. Complete the attached application and return it by June 30, 2009, to:
    31. Cindy Greiwe
    32. Florida Department of Education
    33. 325 W. Gaines Street
    34. 1004 Turlington Building
    35. Tallahassee, Florida 32399-0400
    36. This form can be downloaded from the Office of Educational Facilities’ Web site at: http://www.fldoe.org/edfacil/oef/federalbond.asp.
    37. Qualified Zone Academy Bond Program
    38. April 17, 2009
    39. Page 3
    40. Allocation Procedure
    41. 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.
    42. 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.
    43. If you have additional questions, please call Cindy Greiwe at (850) 245-9245.
    44. LC/csg
    45. Attachments
    46. cc: District Finance Officers
    47. District Facilities Managers
    48. Frances Haithcock, Chancellor of Public Schools
 
 
FLORIDA DEPARTMENT OF EDUCATION
 
S
  
TATE BOARD OF EDUCATION
 
T. WILLARD FAIR,
Chairman
Members
PETER BOULWARE
DR. AKSHAY DESAI
ROBERTO MARTÍNEZ
PHOEBE RAULERSON
KATHLEEN SHANAHAN
LINDA K. TAYLOR
 
Dr. Eric J. Smith
Commissioner of Education
  
 
  
 
  
 
 
 
 
 
CONTACT PERSON
   
   
NAME: Cindy Greiwe
  
 
PHONE:
    
(850) 245-9245
   
 
COEFO: 09-03
 
  
MEMORANDUM
 
DATE: April 17, 2009
 
TO: District School Superintendents
 
FROM: Linda Champion
 
SUBJECT: Qualified Zone Academy Bond Program
 
The Qualified Zone Academy Bond (QZAB) program has been extended through 2010. Florida received
allocations in the amount of $21,607,000 for the 2008 calendar year and $75,623,000 for the 2009
calendar year. An unallocated balance of $7,371,990 remains for the calendar year 2007. The 2007
bonds must be issued by December 31, 2009. The allocations for 2010 will be announced later this 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
 
•
 
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
DEPUTY COMMISSIONER, FINANCE AND OPERATIONS
 
325 W. GAINES STREET • SUITE 1214 • TALLAHASSEE, FL 32399-0400 • (850) 245-0406 • www.fldoe.org
FAX (850) 245-9099
 
Qualified Zone Academy Bond Program
April 17, 2009
Page 2
 
 
•
 
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.
 
•
 
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 district school tax funds to repay QZAB debt.
–
 
If district school tax proceeds are proposed for repayment of QZAB debt, these proceeds shall
not exceed the Certificates of Participation limit established for district school tax revenues in
Section 1011.71, Florida Statutes.
–
 
The State has not been authorized to issue or guarantee QZAB loans.
 
•
 
Of Florida’s $20,271,000 allocation for 2007, $12,899,010 was allocated to two school districts
during the 2008 application cycle, leaving an unallocated balance of $7,371,990.
 
•
 
Archived information and links can be found on the Office of Educational Facilities’ Web site
http://www.fldoe.org/edfacil/oef/federalbond.asp.
 
Application Procedures and Deadline
 
Complete the attached application and return it by June 30, 2009, 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’ Web site at:
http://www.fldoe.org/edfacil/oef/federalbond.asp.
 
 
 
 
 
 
 
 
 
Qualified Zone Academy Bond Program
April 17, 2009
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.
 
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.
 
LC/csg
 
Attachments
 
cc: District Finance Officers
District Facilities Managers
Frances Haithcock, Chancellor of Public Schools
 

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