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The Session Report

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The Session Report THE SESSION REPORT April 2, 2012 Please Note: Unless otherwise noted, matters reported are subject to Governor’s Veto veto pen, Florida law provides college Boards of Trustees with the ability to increase tuition based on the consumer price index, which is 3 percent this year. ► With one minute to spare, the Florida Legislature adjourned sine die at 11:59 PM on Friday, March 9, 2012. A total of 2052 bills were introduced, although only 292 passed both chambers. Perhaps one of the most difficult aspects of the session was the record number of conforming bills (35) which added pages of statutory changes to both the House and Senate appropriations; along with a number of bills that will have a dramatic impact, if signed into law. House Speaker Dean Cannon, R-Winter Park, left, and Senate ► The state universities faced a far more President Mike Haridopolis, R-Melbourne, right, stand together volatile session, absorbing an almost $300 million providing a cameo image of the Legislature's leadership during a pause in the ceremonial joint session of the Legislature. reduction in base funding, expected to be replaced by using fund balances and significant tuition increases. Two universities were granted permission to charge 2012 Legislative Session market value for tuition. In addition, the Legislature agreed to the creation of a 12th state university. Introduction ► A bill revising the general education ► There was good news and bad news for requirements for all the State higher education Florida higher education in the 2012 session. Despite institutions will have a significant impact on college a sagging economy and a Legislature facing and university curriculum. The required number of significant budget deficits, the Florida College general education hours was lowered from 36 to 30 System fared well, maintaining current levels of state with 15 hours to be standardized across both delivery operating support and receiving additional funds for systems. Foreign language requirements must now facilities operations and specific college projects. The be met as part of the graduation requirements for the $70 billion dollar budget included a 2.8 percent Associate in Arts degree. increase for the Florida College System over the previous year’s budget, and both the House and the ► Distance learning, student advising Senate agreed to a 5 percent tuition increase. The (FACTS), and library support (CCLA and FCLA) Governor has the option to accept or reject the were consolidated into one state-wide entity. A pilot proposed tuition increase. However, if he uses his distance learning project, targeting students who THE SESSION REPORT APRIL 2, 2012 began but did not complete a degree, was also this by a fund shift reduction of a like amount from created. This funded project will be carried out by General Revenue. two universities and two colleges, and could have a significant impact on future distance learning ► The Legislature again adjusted funding in activities. the Community College Program Fund to reflect a change in Florida Retirement System contributions. ► There were several subtle, but important, An increase of $7.2 million was provided to fund changes in the Florida college governance system and normal cost increases of the program. The increase calls for additional studies regarding higher education was offset by a reduction in funding of $6.5 million, governance. The Higher Education Coordinating which reflects the lowered employer’s contribution Council (HECC) have an important role, as rates which will be charged for members of the recommendations for Florida College System CCORP and the Investment programs in 2012-13. governance could be considered. Because of the lowered rates, it is expected that these changes should have no net impact on the funds ► The lack of Public Education Capital Outlay available for operations. funding continued to create problems for the Florida College System, with only very small amount ($5.3 ► In addition, the Legislature provided million) available for maintenance at all 28 colleges. approximately $36.1 million to individual colleges No projects were funded out of PECO dollars, but resulting in an overall increase in state funding of Lottery bond proceeds were appropriated to fund $28.3 million or a net increase of 2.8 percent. The selected college projects. The final fixed capital Legislature also authorized local boards to increase outlay list was completely different from those tuition by up to 5 percent. With the inclusion of the included in each chamber’s initial budgets. The projected tuition receipts of $45.5 million, the overall Legislature did provide appropriations to backfill the potential increase in funding will amount to 3.8%. current PECO cash shortage impacting the 2008 and 2010 approved PECO projects. ► The maximum increase in state dollars was 20.9 percent. Twenty-one colleges had a net change ► Finally, for the first time in recent legislative of less than 3.2%.Depending on an individual history, of more than 300 gubernatorial appointments college's funding for retirement adjustments, slated to be confirmed by the Senate, only eight were operating cost for new facilities, legislative confirmed. All other gubernatorial appointments initiatives, and tuition the range of increase will be including hundreds of college and university trustees from 1.3 percent to 15 percent. were not confirmed. The Governor must reappoint within forty-five days, or the appointments expire. ► Funding for the College Center for Library Automation was removed from being part of the ► Another legal issue will play a role for the CCPF allocation. The $12.8 million was transferred, future. On March 6, 2012, the Circuit Court of the reduced by 5%, and appropriated as part of the new Second Judicial Circuit issued an order striking down Florida Virtual Campus line item. Funding was the 2011 law that required employees in the Florida continued for the 2+2 partnership initiative at the Retirement System to contribute 3% of their salary level of $3 million. toward their retirement. The trial court’s opinion has been appealed by the State. No changes to benefits or deductions are being made during the appeals process. Funding Issues ► In general, funding for the Florida College System and the Community College Program Fund (CCPF) was slightly increased for 2012-13 from the 2011-12 level. Lottery funding was up significantly from $130,359,158 to $180,808,060 for an increase of $50,448,902 or 39 percent. The Legislature offset Speaker Dean Cannon, R-Winter Park, center; confers with Representatives Mike Horner, R-Kissimmee, left; and Stephen Precourt, R-Orlando, right; on the House floor during session. 2 THE SESSION REPORT APRIL 2, 2012 Florida College System Appropriations Issue Funding Funding 2011-12 2012-13 Issue Funding Funding 2011-12 2012-13 Fl Distance Learning Consortium Lottery $130,359,158 $180,808,060 FACTS $590,000 2011-12 Community College unspent Program Fund $893,092,474 $870,982,214 balance re- (CCPF) appropriated Florida Virtual This is the FCS $10,963,647 Adults with $1,030,830 $876,206 Campus share. SUS Disabilities (FDLN,FACTS, share separate. CCLA,FCLA) Student Fees 8 % increase 5 % increase 2 + 2 Partnerships, $3,000,000 $3,000,000 SUS and FCS Facilities Matching 0 0 Operating Costs for $6,632,212 $7,299,889 New Facilities Phillip Benjamin 0 0 Matching Total State Funds $1,027,572,933 $1,066,187,103 (3.8%) PECO Valencia Appropriations General Revenue $1,440,000 $0 Lottery $18,776,420 $69,098,805 STATE 2010-11 2010-11 PECO $82,648,517 $0 ALLOCATED FUNDS Total $102,864,937 $69,098,805 After veto: Community $ 7,814,525 $11,861,086* $18,636,486 College Program Fund (CCPF) *$6,036,296 is PECO Sum-of-Digits $8,088,000 $5,377,488 Lottery non-recurring CCPF General $ 52,771,488 $ 57,136,806 First Generation $1,397,017 $1,327,166 Revenue Matching (recurring) College Reach Out $1,000,000 $1,000,000 Program TOTAL $ 60,586,013 $ 68,997,892 (13.9%) ► Foundation Matching Funds Public Fin Aid For the fifth consecutive year, the legislature declined to fund the Florida College System’s challenge matching Lottery $45,100,892 $45,100,892 grants program. If funded, Valencia’s Foundation would Student Loan have received over $7,245,090 to match private Operating Trust Fund contributions received by February 1, 2012. General Revenue $59,602,832 (FSAG) $55,304,031 $0 ► Facilities Matching Funds Total For the fifth consecutive year, the legislature declined to $100,404,923 $104,703,724 fund the Florida College System’s facilities matching grants program. If funded, Valencia would have received $5,181,896 to match contributions received for the construction of Building 4, Osceola Campus. 3 THE SESSION REPORT APRIL 2, 2012 Public Educational Capital Outlay (PECO) Funds Governor then has a 15 day period from the day each bill is received to take action. VALENCIA AMOUNT FUNDED PROJECT 2011-12 NOTE: Appropriations Proviso, Gen ren/rem, $ 1,807,926 Implementing Bills and Conforming Bills infrastructure and site improvements & ► The Legislature has three methods to reflect acquisition decisions made in the General Appropriations Act (GAA) process. First, proviso is language attached to Library & High Tech $ 4,191,590 a specific appropriation and directs or authorizes how Bldg 4 - Osceola (ce) the funds can be expended. Or, an implementing bill comp may provide instructions to enact specific provisions in the GAA language or proviso by changing the law Maj Ren/Rem, Emg repl- $ 0 on a temporary basis for one year. While the GAA Chill w/loop, infrastr- cannot contradict current law, there may be a need to East campus temporarily suspend some provision of law. Finally, a conforming bill may also travel with the GAA.
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