Agency: State Board of Education.
Purpose: The bonds are issued for the purpose of financing capital outlay projects for the state system of public education (kindergarten to universities and vocational‐technical centers) which are approved by the Florida Legislature. Such projects generally include classroom buildings, laboratories, heating and cooling equipment, and major remodeling and roof replacement.
Security:
- Pledged Revenues: The bonds are payable primarily from gross receipts taxes on telecommunications and utilities. One hundred percent of such taxes are distributed to the State Board of Education, which may use the funds for debt service or directly for the payment of approved projects. The bonds are also secured by the full faith and credit of the State of Florida.
- Debt Service Reserve Fund: No debt service reserve fund is required for public education capital outlay bonds.
- Lien Status: The bonds have a first lien on the pledged gross receipts taxes.
- Additional Bonds Test: Additional parity bonds may be issued if the average annual amount of gross receipts taxes collected in the 24 month period prior to issuance is equal to or greater than 111% of the maximum annual debt service on the outstanding bonds and proposed additional bonds.
Frequency: Varies and in some years no bonds are issued, but there may be one to two new money issues a year, depending upon the number of projects approved by the legislature and the cash requirements for funding the projects.