2.            

AGENDA

MEETING OF THE

 STATE BOARD OF ADMINISTRATION

(Contact Person:  Dorothy Westwood – (850) 488-4406)

THE CAPITOL

TALLAHASSEE, FLORIDA

MARCH 13, 2003

1.                 APPROVAL OF MINUTES FROM THE MEETING ON FEBRUARY 25, 2003.

(Att. #1)

(ACTION REQUIRED)

2.                  FLORIDA RETIREMENT SYSTEM (FRS) ACTUARIAL REPORT REVIEW.      

(INFORMATION ONLY)

The July 2002 Actuarial report has been reviewed by SBA staff and is submitted to the Trustees pursuant to section 121.0312, Florida Statutes.  (Att. #2)

3.                  APPOINTMENT OF TWO MEMBERS TO THE INVESTMENT ADVISORY COUNCIL.  (Att. #3)

(ACTION REQUIRED)

4.   APPROVAL OF FISCAL SUFFICIENCY OF AN AMOUNT NOT EXCEEDING $455,000,000 STATE OF FLORIDA, FULL FAITH AND CREDIT, STATE BOARD OF EDUCATION PUBLIC EDUCATION CAPITAL OUTLAY REFUNDING BONDS, (SERIES 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 $455,000,000 State of Florida, Full Faith and Credit, State Board of Education Public Education Capital Outlay Refunding Bonds, (series to be determined) (the Bonds) for the purpose of refunding all or a portion of the outstanding 1993 Series D Bonds; provided, however, that none of the said 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 Bonds are being issued pursuant to an authorizing resolution adopted by the State Board of Education on July 21, 1992 and the Twenty-Ninth Supplemental Authorizing

STATE BOARD OF ADMINISTRATION

AGENDA

MARCH 13, 2003

PAGE TWO

Resolution and a sale resolution, both anticipated to be adopted by the State Board of Education on March 18, 2003.

The State Board of Education has heretofore issued Public Education Capital Outlay and Public Education Capital Outlay Refunding Bonds, Series 1985 through 2002 Series C of which $8,136,690,000 in principal amount was outstanding and unpaid on March 5, 2003.  The State Board of Education received approval as to fiscal sufficiency for an amount not exceeding $237,600,000 Public Education Capital Outlay Bonds, 2001 Series at the January 28, 2003 meeting of the State Board of Administration, of which $112,600,000 remains unissued (the “2001 Bonds”).  The proposed 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 proposed 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 2002 Series C and, if issued, the proposed 2001 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.