AGENDA

MEETING OF THE
FLORIDA STATE BOARD OF ADMINISTRATION
(Contact Person: Dorothy Westwood – (850) 488-4406)
CITY COMMISSION CHAMBERS
175 FIFTH STREET NORTH
ST. PETERSBURG, FLORIDA
September 24, 2002

1. APPROVAL OF FISCAL SUFFICIENCY OF AN AMOUNT NOT EXCEEDING $365,000,000 STATE OF FLORIDA, FULL FAITH AND CREDIT STATE BOARD OF EDUCATION PUBLIC EDUCATION CAPITAL OUTLAY REFUNDING BONDS, 2002 SERIES [LETTER DESIGNATION(S) TO BE DETERMINED]:

(ACTION REQUIRED)

The Division of Bond Finance of the State Board of Administration (the Division), on behalf of the State Board of Education, has submitted for approval as to fiscal sufficiency a proposal to issue an amount Not Exceeding $365,000,000 State of Florida, Full Faith and Credit State Board of Education Public Education Capital Outlay Refunding Bonds, 2002 Series [letter designation(s) to be determined] (the Refunding Bonds) for the purpose of refunding a portion of the outstanding 1992 Series D and 1992 Series E Bonds; provided, however, that none of the said Refunding Bonds shall be issued in excess of the amount which can be issued in full compliance with the State Bond Act and other applicable provisions of law, and pursuant to Section 9(a)(2), Article XII of the Constitution of Florida, as amended. The Refunding Bonds are being issued pursuant to an authorizing resolution adopted by the Governor and Cabinet on July 21, 1992, and authorizing and sale resolutions anticipated to be adopted by the Governor and Cabinet on September 24, 2002.

The State Board of Education has heretofore issued Public Education Capital Outlay and Public Education Capital Outlay Refunding Bonds, Series 1985 through 2001 Series G of which $7,777,700,000 in principal amount was outstanding and unpaid on August 31, 2002. The State Board of Education received approval as to fiscal sufficiency on August 13, 2002 for $250,000,000 Public Education Capital Outlay Bonds, 2002 Series [letter designation(s) to be determined] (the Previously Approved Bonds). In addition, the State Board of Education sold the $264,470,000 Public Education Capital Outlay Refunding Bonds, 2002 Series B, which are for the purpose of refunding $269,085,000 principal amount of outstanding Public Education Capital Outlay Bonds and are scheduled to be issued on September 25, 2002 (the 2002 Series B Refunding Bonds). The proposed Refunding Bonds shall be junior, inferior, and subordinate to the outstanding and unpaid Public Education Capital Outlay and Public Education Capital Outlay Refunding Bonds Series 1985 through 1989-A as to lien on and source and security for payment from the Gross Receipts Taxes. The
FSBA AGENDA
September 24, 2002
Page two

proposed Refunding Bonds shall be issued on a parity as to lien on and source and security for payment from the Gross Receipts Taxes with the outstanding and unpaid Public Education Capital Outlay and Public Education Capital Outlay Refunding Bonds, 1992 Series C through 2001 Series G, the 2002 Series B Refunding Bonds and, if issued, the Previously Approved Bonds.

A study of this proposal and the estimates of revenue expected to accrue from the Gross Receipts Tax, indicate that the proposed Bonds and all other outstanding bonds having a lien on the Gross Receipts Tax are fiscally sufficient and that the proposal will be executed pursuant to the applicable provisions of law.

RECOMMENDATION: It is recommended that the Board approve the fiscal sufficiency of the proposal outlined above. (Att. #1)