EDA 6240 Finance Vocabulary Flashcards
237 Loan
The school board of any district is authorized to create obligations by way of anticipation of budgeted revenues without pledging the credit of the district or requiring future levy of taxes for capital purposes for a period of one year; however, such obligation may be extended from year to year for a total of 5 years. The debt service is paid from the proceeds of the capital millage (2.00 mills).
Additional Discretionary Millage
A portion of the ad valorem (property) tax rate which is nominally a local school board decision. This levy can not raise more than $50 per FTE. Approval of this millage requires a separate vote by the board.
Ad Valorem Tax (property tax)
): A tax levied primarily on real property. The amount of tax is determined by multiplying the taxable assessed value of the property by the millage rate.
Appropriation
An authorization made by the School Board that permits officials to incur obligations against and to make expenditures of governmental resources.
Assessed Valuation
The estimated value placed upon real and personal property by the County Property Appraiser as the basis for levying property taxes.
Bond (Debt Instrument)
A written promise to pay a specified sum of money (called principal or face value) at a specified future date (called the maturity date) along with periodic interest paid at a specified percentage of the principal (interest rate). Bonds are typically used for long-term debt to pay for specific capital expenditures.
BSA
Base Student Allocation: The dollar amount of revenue allocated by the Legislature as a base funding amount per full-time student.
Budget Amendment
A formal document approved by the board to change the adopted budget.
Budget Calendar
A schedule of dates used in the preparation and adoption of the annual budget.
Budget (Preliminary)
The Superintendent’s initial budget recommendation prior to the tentative budget hearing.
Budget (Tentative)
The budget as advertised in the newspaper and formally adopted by the board in July.
Budget (Recommended)
The budget formally adopted by the board at the final public hearing in September.
Budget (Operating)
A plan of financial operation embodying an estimate of proposed expenditures for a given period (typically a fiscal year) and the proposed means of financing them (revenue estimates).
Capital Outlay (object of expenditure)
Expenditures for the acquisition of fixed assets or additions to existing fixed assets. These are expenditures for land or existing buildings, improvements of grounds, construction of buildings, remodeling of buildings, and equipment. Typically, new construction and land acquisition are budgeted in the Capital Outlay Funds. In the operating fund, typical capital outlay items include vehicles, library books, audio-visual equipment, computers, software, and furniture.
Outlay Funds Capital
A specific group of funds created to account for financial resources to be used for the acquisition or construction of major capital facilities. There are statutory and regulatory restrictions on the use of capital outlay funds. Major capital outlay fund sources include PECO, CO&DS, lottery, impact fee, classrooms first and property taxes.
Categoricals
State revenue sources that are restricted in their use to certain types (categories) of expenditure. Examples of state categoricals are Instructional Technology, Safe Schools, Teacher Lead, Teacher Training, and Instructional Materials funds. The number of categoricals, their funding level, and the limitations on their use are subject to annual approval by the State Legislature.
Certificate of Participation (C.O.P.)
A certificate of participation is a form of lease-purchase agreement whereby the cost of a major capital expenditure can be spread over a pre-determined number of years. It is similar to bond financing, however, a C.O.P. is dependent on the appropriation of funds each year to cover the amount of payments required that year. For this reason, it is a somewhat higher risk for the investor, and normally demands a somewhat higher interest rate than a bond.
Certified Taxable Value
The annual property tax value certified by the property appraiser of the county to the State Department of Revenue.
Charter Schools
: Charter schools are public schools operating under a performance contract with the local school board. They are free from many state and local bureaucratic regulations and mandates controlling local schools, but in return they are held strictly accountable for the academic and financial performance of the school. Charter schools, sometimes referred to as “independent public schools”, can be existing public schools converted to charter status or newly created schools organized by teachers, parents, and community groups.
Classrooms First
The Florida Legislature bonded a portion of lottery funds to provide an additional source of Capital Outlay funds.
Compression Adjustment
Districts that fell below the state average in funding per FTE received a compression adjustment to reduce the disparity in total potential funds per unweighted FTE in previous years. This allocation was combined with the Supplemental Academic Instruction allocation during this years Legislative Session.
DCD
District Cost Differential: The factor used to adjust funding to reflect differing cost of living in the various districts throughout the state. The DCD is calculated using the Florida Price Level Index. Over the past few years, the DCD has been indexed in differing ways, making historical comparisons difficult. See Value of One FTE.
Debt Service Fund
A fund established to account for the accumulation of resources for payment of interest and repayment of principal to holders of debt instruments.
Discretionary Equalization
A supplement given to districts that generate less than $50 per FTE from their Additional Discretionary Millage Levy to ensure $50 per FTE.