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Clear Dot Image Cabinet Affairs
 
 
 
 
 
          1
 
          2                  T H E   C A B I N E T
 
          3             S T A T E   O F   F L O R I D A
 
          4
                                 Representing:
          5
                             STATE BOARD OF EDUCATION
          6               DEPARTMENT OF VETERANS AFFAIRS
                  DEPARTMENT OF HIGHWAY SAFETY & MOTOR VEHICLES
          7                   DEPARTMENT OF REVENUE
                            ADMINISTRATION COMMISSION
          8     BOARD OF TRUSTEES, INTERNAL IMPROVEMENT TRUST FUND
                    ST. JOHNS RIVER WATER MANAGEMENT DISTRICT
          9
 
         10            The above agencies came to be heard before
              THE FLORIDA CABINET, Honorable Governor Chiles
         11   presiding, in the Cabinet Meeting Room, LL-03,
              The Capitol, Tallahassee, Florida, on Thursday,
         12   September 25, 1997, commencing at approximately
              9:48 a.m.
         13
 
         14
 
         15                       Reported by:
 
         16                     LAURIE L. GILBERT
                         Registered Professional Reporter
         17                  Certified Court Reporter
                           Certified Realtime Reporter
         18                  Notary Public in and for
                          the State of Florida at Large
         19
 
         20
 
         21
 
         22            ACCURATE STENOTYPE REPORTERS, INC.
                                100 SALEM COURT
         23                TALLAHASSEE, FLORIDA 32301
                                  850/878-2221
         24
 
         25
 
 
 
 
 
 
 
                                                              2
 
          1   APPEARANCES:
 
          2            Representing the Florida Cabinet:
 
          3            LAWTON CHILES
                       Governor
          4
                       BOB CRAWFORD
          5            Commissioner of Agriculture
 
          6            BOB MILLIGAN
                       Comptroller
          7
                       SANDRA B. MORTHAM
          8            Secretary of State
 
          9            BOB BUTTERWORTH
                       Attorney General
         10
                       FRANK T. BROGAN
         11            Commissioner of Education
 
         12                           *
 
         13
 
         14
 
         15
 
         16
 
         17
 
         18
 
         19
 
         20
 
         21
 
         22
 
         23
 
         24
 
         25
 
 
 
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                                September 25, 1997
                                                              3
 
          1                        I N D E X
 
          2   ITEM                  ACTION                PAGE
 
          3   STATE BOARD OF EDUCATION:
              (Presented by Wayne V. Pierson,
          4       Deputy Commissioner for Planning,
                  Budgeting, and Management)
          5
               1                  Approved                  5
          6    2                  Approved                 43
               3                  Withdrawn                43
          7    4                  Approved                 44
 
          8   DEPARTMENT OF VETERANS' AFFAIRS:
              (Presented by Carlos L. Rainwater,
          9       Executive Director)
 
         10    1                  Approved                 45
               2                  Approved                 46
         11    3                  Approved                 47
 
         12   DEPARTMENT OF HIGHWAY SAFETY AND MOTOR VEHICLES:
              (Presented by Fred O. Dickinson, III,
         13       Executive Director)
 
         14    1                  Approved                 49
               2                  Approved                 49
         15    3                  Approved                 50
               4                  Approved                 52
         16    5                  Approved                 53
 
         17   DEPARTMENT OF REVENUE:
              (Presented by L.H. Fuchs,
         18       Executive Director)
 
         19    1                  Approved                 54
               2                  Approved                 54
         20    3                  Approved                 55
               4                  Deferred                 55
         21    5                  Approved                 55
               6                  Approved                 56
         22
 
         23
 
         24
 
         25
 
 
 
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                                September 25, 1997
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          1                         I N D E X
                                   (Continued)
          2
              ITEM                  ACTION                PAGE
          3
              ADMINISTRATION COMMISSION:
          4   (Presented by Robert B. Bradley, Ph.D.,
                  Secretary)
          5
               1                  Approved                 57
          6    2                  Approved                 57
               3                  Approved                 58
          7    4                  Approved                 58
               5A and 5B          Approved                 58
          8    6                  Approved                 59
 
          9   BOARD OF TRUSTEES OF THE
              INTERNAL IMPROVEMENT
         10   TRUST FUND:
              (Presented by Kirby B. Green, III,
         11       Assistant Secretary)
 
         12    1                  Approved                 60
               2                  Approved                 60
         13    3                  Approved                 60
               4                  Approved                 60
         14    5                  Approved                 61
               6                  Approved                 61
         15    7                  Approved                 61
               8                  Approved                 62
         16    9                  Approved                 62
              Substitute 10
         17      Parcel 79        Approved                 73
                 Parcel 33        Approved                 74
         18      Parcel 205       Denied                   74
              Substitute 11       Approved                 75
         19
              ST. JOHN RIVER WATER MANAGEMENT DISTRICT:
         20   (Presented by Kirby B. Green, III,
                  Assistant Secretary)
         21
               1                  Approved                 76
         22    2, 3, 4            Deferred                 76
 
         23            CERTIFICATE OF REPORTER             78
 
         24                           *
 
         25
 
 
 
                        ACCURATE STENOTYPE REPORTERS, INC.
 
                             STATE BOARD OF EDUCATION
                                September 25, 1997
                                                              5
 
          1                  P R O C E E D I N G S
 
          2            (The agenda items commenced at 10:16 a.m.)
 
          3            GOVERNOR CHILES:  Now we'll go to the
 
          4       agenda with the State Board of Education.
 
          5            MR. PIERSON:  Good morning.  Wayne Pierson,
 
          6       Deputy Commissioner.
 
          7            Item 1 on the agenda is the minutes of the
 
          8       meeting of August 12th, 19--
 
          9            COMMISSIONER BROGAN:  Move approval.
 
         10            MR. PIERSON:  --97.
 
         11            COMPTROLLER MILLIGAN:  Second.
 
         12            MR. PIERSON:  Item 2 on the --
 
         13            GOVERNOR CHILES:  Moved and seconded.
 
         14            Without objection, the minutes are
 
         15       approved.
 
         16            MR. PIERSON:  Item 2 on the agenda is the
 
         17       1998-99 Legislative Budget Request for the
 
         18       programs and functions under the general
 
         19       supervision of State Board of Education.
 
         20            The first presenter will be
 
         21       Chancellor Reed, who will do the university
 
         22       budget.
 
         23            CHANCELLOR REED:  Good morning.  And
 
         24       thank you for the --
 
         25            GOVERNOR CHILES:  Good morning.
 
 
 
                        ACCURATE STENOTYPE REPORTERS, INC.
 
                             STATE BOARD OF EDUCATION
                                September 25, 1997
                                                              6
 
          1            CHANCELLOR REED:  -- opportunity to discuss
 
          2       briefly with you the State University System
 
          3       budget for 1998-99.
 
          4            The first chart, I hope everybody can see
 
          5       that from far away, shows you that from 1997-98
 
          6       to 98-99 budget, we're asking for an increase of
 
          7       345 million dollars.  That represents a
 
          8       17 percent increase in the appropriated funds.
 
          9            The Legislature this year appropriated
 
         10       approximately two billion dollars of the State
 
         11       University System's 4 billion dollar operating
 
         12       budget.  So as you can see, we receive
 
         13       approximately 50 percent of our funds from the
 
         14       Legislature through the appropriations process.
 
         15            The 17 percent increase includes the State
 
         16       general revenue support; the lottery support;
 
         17       student fees; and what we call other, which are
 
         18       some Federal funds from IFAS for providing
 
         19       extension service, and some of the patient fee
 
         20       revenue in our clinics.
 
         21            I would like to highlight three issues for
 
         22       you today that I think are critical for the
 
         23       long-term success of the State University
 
         24       System, and the future of our state.
 
         25            The first issue that I want to raise is an
 
 
 
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                             STATE BOARD OF EDUCATION
                                September 25, 1997
                                                              7
 
          1       issue of access or opportunity to get to go to
 
          2       one of our ten universities in Florida.
 
          3            This chart shows you a line that is going
 
          4       almost straight up.  If you look in the far
 
          5       left-hand corner, in 1986-87, we had
 
          6       approximately -- we had 85,000
 
          7       full-time equivalent students in the university
 
          8       system.  I have said many times, I have never
 
          9       met a full-time equivalent student.  But that's
 
         10       the way that we are funded.
 
         11            The definition of a full-time equivalent
 
         12       student is a student that takes 15 hours for the
 
         13       two semesters, fall, spring; and 10 semester
 
         14       hours in the summer.  They're hard to find.
 
         15            But that's the way we are funded.
 
         16            But we have grown in this university system
 
         17       in the last ten years by approximately
 
         18       50 percent.  We've grown by over
 
         19       3,500 full-time equivalent students every year
 
         20       for the last ten years.
 
         21            This year, that red part gets a little bit
 
         22       steeper even than what we have been doing.  But
 
         23       we're going to be going to the Legislature, and
 
         24       ask for your support, to request for an
 
         25       additional 6,000 full-time equivalent students.
 
 
 
                        ACCURATE STENOTYPE REPORTERS, INC.
 
                             STATE BOARD OF EDUCATION
                                September 25, 1997
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          1            In our budget request in that 345 million
 
          2       dollars, there's 63 million dollars of that is
 
          3       just for new students.
 
          4            The old head count way of doing that is
 
          5       that'll be about 10,000 new students entering
 
          6       next August to the State University System.
 
          7            The current 130,000 that we have this year,
 
          8       we have our record enrollment again in the State
 
          9       University System, and a head count, we have
 
         10       over 220,000 students in the university system
 
         11       this year.
 
         12            You might say, why do we need the
 
         13       6,000 more full-time equivalent students, or
 
         14       access for 10,000 students?
 
         15            First, if you look back to 90-91, and back
 
         16       from that, we had a relatively stable 12th grade
 
         17       graduation rate, and we made significant
 
         18       progress on giving some opportunities to young
 
         19       people to come to the university system.
 
         20            But beginning in 1995-96, and all the way
 
         21       through 2006, the tidal wave is on the way in
 
         22       Florida to post high school education.
 
         23            The K through 12 system will be growing at
 
         24       the 12th grade level from 89,000 graduates in
 
         25       1996, to 135,000 graduates in the year 2008.
 
 
 
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                             STATE BOARD OF EDUCATION
                                September 25, 1997
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          1            Our universities will have to grow every
 
          2       year just to keep pace as to where we are now.
 
          3       And so we will have to add tens of thousands of
 
          4       additional students.
 
          5            I can't overemphasize the importance of
 
          6       providing access and opportunity to the young
 
          7       people of our state.
 
          8            This is probably the single biggest
 
          9       challenge to the State of Florida's education
 
         10       system in the next ten years that we will have.
 
         11            Our admission standards are too high.  I
 
         12       like to win all the prizes at the national
 
         13       level.  Florida A&M University, recognized as
 
         14       the outstanding college of the year in 1997.
 
         15            University of Florida and FSU rank fourth
 
         16       and fifth in the number of national merit
 
         17       scholar students and national achievement
 
         18       scholar students.  But we rank second only to
 
         19       the University of California in how high our
 
         20       admission standards are.  And we are a public
 
         21       institution paid for by thousands and thousands
 
         22       of taxpayers.
 
         23            Last week I was at the economic summit at
 
         24       Cape Canaveral, the business leaders in Florida
 
         25       were talking about the, quote, poor perception
 
 
 
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                             STATE BOARD OF EDUCATION
                                September 25, 1997
                                                              10
 
          1       of education in our state.  And I said that
 
          2       perception was wrong, but it'll take time to
 
          3       catch up with it.
 
          4            On the other hand, what they were talking
 
          5       about is our state ranking 45th of the 50 states
 
          6       in the production of baccalaureate degrees that
 
          7       we produce to go into our work force.
 
          8            And they talked about the economic vitality
 
          9       that demands an educated work force to compete
 
         10       in a global economy.
 
         11            So we know that there'll be increasing
 
         12       demand.  In the university system, we only take
 
         13       16 percent of Florida's 12th grade graduates as
 
         14       first time in college students.  That's not very
 
         15       high.
 
         16            At that conference, they also talked about
 
         17       the educational value added to those who are
 
         18       fortunate enough to complete a baccalaureate
 
         19       degree.
 
         20            This chart shows what financial premium is
 
         21       earned over a lifetime between those who get a
 
         22       high school diploma, a community college A.A. or
 
         23       A.S. degree, and a baccalaureate degree.
 
         24            As you can see, those who reached a B.A. or
 
         25       B.S. degree over their lifetime can earn a
 
 
 
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                             STATE BOARD OF EDUCATION
                                September 25, 1997
                                                              11
 
          1       million four hundred and twenty-one thousand
 
          2       dollars, versus eight hundred and twenty-one
 
          3       thousand for a high school graduate.
 
          4            So that access enrollment is important for
 
          5       our state's economy, for the quality of life of
 
          6       our citizens, and for the opportunity that they
 
          7       should be provided.
 
          8            The second issue that I'd like to share
 
          9       with you that's in our budget is an issue that
 
         10       highlights technology.  Many of you read in the
 
         11       newspaper today, and saw or heard on public
 
         12       radio, that we joined in a partnership yesterday
 
         13       with the British Open University, the largest
 
         14       university using technology in the world.  They
 
         15       have over 200,000 students in the U.K. and
 
         16       throughout the world.  And we've joined in
 
         17       partnership to use their technology, their
 
         18       techniques in Florida.
 
         19            But we have to do more to get our students
 
         20       ready to use technology.
 
         21            We are asking the Legislature to authorize
 
         22       the implementation of a $50 per student per
 
         23       semester fee.  More than half of America's
 
         24       public colleges and universities have fees to
 
         25       put technology in place.
 
 
 
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                             STATE BOARD OF EDUCATION
                                September 25, 1997
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          1            It's been interesting to me that this $50
 
          2       fee will actually save students money.  We're
 
          3       providing students access now to E-mail.  But we
 
          4       want to provide it -- students access to the
 
          5       World Wide Web.  And many of them are paying
 
          6       America Online 25, 30, $40 a month, and we could
 
          7       do it for $50 a semester, three or four months
 
          8       at a time.
 
          9            This fee'll raise approximately 17 million
 
         10       dollars, and will allow us to put the hardware,
 
         11       as well as the software, in place on our
 
         12       campuses.
 
         13            We've proposed this fee, and we have said
 
         14       that the university presidents and the student
 
         15       body leaders will develop the technology plans
 
         16       for each of our ten campuses.
 
         17            The third issue that I'd like to highlight
 
         18       is faculty and university staff support
 
         19       salaries.  About 15 years ago, this State Board
 
         20       of Education adopted a goal of reaching the
 
         21       upper quartile in salaries for the university
 
         22       system faculty and staff.
 
         23            In 1985, we reached that upper quartile,
 
         24       13th in the nation in what we were paying our
 
         25       faculty and staff.  But since then, we've
 
 
 
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                             STATE BOARD OF EDUCATION
                                September 25, 1997
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          1       literally fallen off the table.  This year, we
 
          2       rank in the mid 40s in competition.
 
          3            We don't compete inside the state of
 
          4       Florida for faculty members, we compete
 
          5       nationally and worldwide for faculty members.
 
          6       And so the level of our faculty salaries is
 
          7       becoming a quality issue in the university
 
          8       system.
 
          9            So we're asking the Legislature to
 
         10       appropriate 50 million dollars for incentive,
 
         11       competitive, and performance based salaries.
 
         12            As you might see here, the yellow line on
 
         13       the left, and then it's broken out by professor,
 
         14       associate, assistant, instructor, for the -- all
 
         15       ranks for all the research universities, we're
 
         16       more than $12,000 per faculty member behind the
 
         17       national average.
 
         18            And if you look at our other type
 
         19       universities, the Central Floridas and the
 
         20       West Floridas and the North Floridas, we're
 
         21       about $10,000 competitively behind the rest of
 
         22       the country.
 
         23            So we ask that you support that.
 
         24            Lastly, this is not just a problem in the
 
         25       university system, but this is a problem in
 
 
 
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                             STATE BOARD OF EDUCATION
                                September 25, 1997
                                                              14
 
          1       State Government; and that is, to hire the
 
          2       support staff to be competitive for local
 
          3       governments, business and industry, and the
 
          4       other private sector.
 
          5            As you can see, almost every classification
 
          6       that we have in the university system is
 
          7       significantly below what local governments and
 
          8       private industry and business pay in our states.
 
          9            So part of that 50 million dollars would be
 
         10       used for that.
 
         11            The university system has two other broad
 
         12       goals that we have reflected in our budget.  One
 
         13       is to do everything that we can to build
 
         14       partnerships with business and industry to help
 
         15       with the private sector generation of high wage
 
         16       jobs.
 
         17            I participated recently in the I-4 corridor
 
         18       effort in the Orlando area where we're trying to
 
         19       attract some major chip making corporations to
 
         20       come to our state.
 
         21            Those are high wage jobs.  That
 
         22       corporation, as the Governor knows, is talking
 
         23       about putting a seven-and-a-half billion dollar
 
         24       investment in our state.
 
         25            And our second goal, as reflected in our
 
 
 
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                             STATE BOARD OF EDUCATION
                                September 25, 1997
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          1       budget, is for the university system to assume a
 
          2       greater share of the responsibility to help
 
          3       improve our public schools.
 
          4            We know that 90 percent of all the students
 
          5       that come to the university system come from
 
          6       Florida's public schools.  So it behooves us to
 
          7       do everything we can to make those public
 
          8       schools as good as they can be.
 
          9            We look forward to helping Florida solve
 
         10       its critical problems, and we look forward to
 
         11       giving young people an opportunity to go to
 
         12       school in our state.
 
         13            Governor, members of the State Board of
 
         14       Education, I'll be glad to answer any questions
 
         15       that you might have, and I ask you --
 
         16            GOVERNOR CHILES:  Further questions?
 
         17            CHANCELLOR REED:  -- for your support for
 
         18       that --
 
         19            SECRETARY MORTHAM:  I've got a question.
 
         20            Chancellor Reed, I couldn't see that one
 
         21       graph up there.  On the SUS -- the very last
 
         22       graph, could you tell me what those numbers are
 
         23       across the bottom on the --
 
         24            That's the one.
 
         25            CHANCELLOR REED:  What we did is we did a
 
 
 
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                             STATE BOARD OF EDUCATION
                                September 25, 1997
                                                              16
 
          1       salary survey throughout the state looking at
 
          2       local government, private industry, and
 
          3       business.  And we said, for those who hire
 
          4       maintenance mechanics, they're paying 29,231 on
 
          5       the average; we're paying on the average
 
          6       $21,000.  Custodial workers, they're paying
 
          7       18,997; we're paying 13,852.  Coordinators of
 
          8       student affairs, senior personnel
 
          9       representatives.
 
         10            We took probably about 50 classes of state
 
         11       employees that we have, that are support
 
         12       employees, and tried to compare their salaries
 
         13       with others throughout the state.
 
         14            SECRETARY MORTHAM:  Okay.  Did you compare
 
         15       them to other State employees?
 
         16            CHANCELLOR REED:  Yes.
 
         17            SECRETARY MORTHAM:  And what -- what
 
         18       happened?
 
         19            CHANCELLOR REED:  Our -- our pay ranges are
 
         20       essentially the same as other State employees.
 
         21            SECRETARY MORTHAM:  Okay.
 
         22            CHANCELLOR REED:  That's what I'm saying.
 
         23       It's not just a university system problem, it's
 
         24       a State government problem.
 
         25            SECRETARY MORTHAM:  And can you tell me now
 
 
 
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                             STATE BOARD OF EDUCATION
                                September 25, 1997
                                                              17
 
          1       the -- the current percentage of subsidy that is
 
          2       required for every student from the taxpayer.
 
          3            CHANCELLOR REED:  Approximately 75 percent
 
          4       of the cost of a university education is paid by
 
          5       the taxpayer, and 25 percent of the cost is paid
 
          6       by the individual.
 
          7            SECRETARY MORTHAM:  Okay.  And what -- you
 
          8       gave us some statistics, 45th, second.  Where
 
          9       are we in our graduation of students that
 
         10       actually enter the doors of our State University
 
         11       System that graduate.
 
         12            CHANCELLOR REED:  After six years,
 
         13       approximately 65 percent of our students
 
         14       graduate.
 
         15            SECRETARY MORTHAM:  And if, in fact, those
 
         16       numbers were increased to 85 percent, where
 
         17       would we be in the range with other states, the
 
         18       baccalaureate --
 
         19            CHANCELLOR REED:  We'd be --
 
         20            SECRETARY MORTHAM:  -- degrees.
 
         21            CHANCELLOR REED:  -- at the top.  We'd be
 
         22       at --
 
         23            SECRETARY MORTHAM:  I mean --
 
         24            CHANCELLOR REED:  -- the top.
 
         25            SECRETARY MORTHAM:  -- 65 percent --
 
 
 
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                                September 25, 1997
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          1       I mean, maybe I'm crazy, but, I mean, that seems
 
          2       low to me.
 
          3            CHANCELLOR REED:  Well --
 
          4            SECRETARY MORTHAM:  Is it?
 
          5            CHANCELLOR REED:  No.  We rank in the top
 
          6       quartile in the production of getting students
 
          7       through the university system.
 
          8            SECRETARY MORTHAM:  At 65 percent.
 
          9            CHANCELLOR REED:  At 65 percent.  If we
 
         10       were at 80 percent, we would lead the pack.
 
         11            Now, the profile of students has changed
 
         12       significantly over the last 20 years.  Many of
 
         13       us think of students -- that they all look like
 
         14       FSU, FAMU, and University of Florida students.
 
         15       They don't.
 
         16            The seventeen to twenty-one year olds were
 
         17       not the students that the university system grew
 
         18       the last ten years.  That enrollment increase
 
         19       was urban students, the students who take 3 and
 
         20       6, sometimes 9 hours; the returning mother that
 
         21       decided to complete the degree; the person who
 
         22       was downsized and had to come back, that can
 
         23       only take one or two courses.
 
         24            When you're only taking -- at commencement
 
         25       this past May, I was there when a student came
 
 
 
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                             STATE BOARD OF EDUCATION
                                September 25, 1997
                                                              19
 
          1       up and said, it has taken me 12 years, but I did
 
          2       it 6 hours and 3 hours at a time, and I've
 
          3       completed my degree.
 
          4            The average age of our students in Florida
 
          5       now is twenty-eight years old in the university
 
          6       system.
 
          7            SECRETARY MORTHAM:  And last, do we at the
 
          8       State University level do anything to track our
 
          9       graduates to see how many actually get jobs, and
 
         10       at -- in the same area that they actually were
 
         11       trained, and at what level pay-wise?
 
         12            CHANCELLOR REED:  Yes, we do.  That's
 
         13       interesting information.  All the universities
 
         14       follow-up their students.  They do it a little
 
         15       differently.  Some -- they don't do it every
 
         16       year, some of them do it every two, every
 
         17       three years.  And we have some very interesting
 
         18       information.
 
         19            Those students who go to the professional
 
         20       schools, like engineering, get a job right
 
         21       away.  We cannot produce enough engineers in
 
         22       Florida right now.  They're paying bounties to
 
         23       get students -- to get hires, $2,000 at Boeing
 
         24       if the student will come to work.
 
         25            What we have found out is that those
 
 
 
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                                September 25, 1997
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          1       students tend to make more money, business
 
          2       graduates, teacher education graduates, nursing
 
          3       graduates, right away, than some of our other
 
          4       students.
 
          5            The students who graduate in the liberal
 
          6       arts -- and there's been a lot of criticism --
 
          7       they say they can't get a job, they're waiting
 
          8       tables, whatever.
 
          9            What we have found out in our data is if
 
         10       you go out more than five years, eight years,
 
         11       ten years, it's those graduates that are in the
 
         12       senior management positions, and they have
 
         13       passed the salaries that the professional school
 
         14       graduates have made.
 
         15            So the engineers tend to make it fast,
 
         16       plateau; the arts and science students tend to
 
         17       take a long time, and then their salaries
 
         18       increase significantly.
 
         19            SECRETARY MORTHAM:  And one more question.
 
         20            On the $50 fee, not that we're going to be
 
         21       debating any of these issues -- and I'm sure
 
         22       you'll have lots of debate about it -- but are
 
         23       you planning to put that access into
 
         24       dormitories, are you looking at putting it on
 
         25       the campus?
 
 
 
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                             STATE BOARD OF EDUCATION
                                September 25, 1997
                                                              21
 
          1            I mean, obviously if I have a student that
 
          2       has AOL or Netscape, they're having it right --
 
          3       I mean, their individual access point in their
 
          4       dormitory, for example --
 
          5            CHANCELLOR REED:  We're going to --
 
          6            SECRETARY MORTHAM:  -- or at their
 
          7       apartment.
 
          8            CHANCELLOR REED:  We're going to put it in
 
          9       dormitories, student unions, classrooms.  We're
 
         10       going to have servers so that you can dial up
 
         11       from your apartment, wherever you are, you can
 
         12       dial into our servers, and they're going to
 
         13       operate seven days a week, 24 hours a day.
 
         14            SECRETARY MORTHAM:  Okay.  Thank you.
 
         15            COMMISSIONER CRAWFORD:  Governor --
 
         16            GOVERNOR CHILES:  Yes, sir.
 
         17            COMMISSIONER CRAWFORD:  -- just a --
 
         18       I guess a comment and a question.
 
         19            I think, obviously, you've presented a
 
         20       number of challenges facing the university
 
         21       system.  To me the -- the one that reaches the
 
         22       most crisis type proportions is the tidal wave
 
         23       of new people coming in and the -- and the need
 
         24       to increase the capacity.
 
         25            That is -- that is -- I have been seeing
 
 
 
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          1       that coming, and we're already at a capacity
 
          2       problem, but now we're going into a capacity
 
          3       crisis.  Which --
 
          4            And then as I look at the numbers you've
 
          5       got up there, Chancellor, and the other
 
          6       discussions I've been involved with about the
 
          7       growth, it is really alarming of how this state
 
          8       is going to meet those needs.  I mean, I almost
 
          9       can't see it, with all the other things
 
         10       happening.
 
         11            And I remember the discussion with -- at a
 
         12       chamber meeting here in town, they were talking
 
         13       about the need for more student housing and need
 
         14       for more student services, which were
 
         15       opportunities for business here in Tallahassee,
 
         16       because they saw that the -- FSU was going to
 
         17       have to increase its student enrollment by about
 
         18       50 percent over the next ten years to meet the
 
         19       capacity needs.
 
         20            And I'm thinking, where are we going to get
 
         21       the money?  And that is going -- you know, I'm
 
         22       glad that you're really getting everybody
 
         23       focused on that, because it's not going to be
 
         24       easy.  And with everything else going on in this
 
         25       state.
 
 
 
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          1            But even right now, access to our
 
          2       universities is just totally unacceptable, as
 
          3       you mentioned, because the standards are
 
          4       outrageously high for students coming out of
 
          5       high school, simply because there's not the
 
          6       seats available.
 
          7            Have you -- have you calculated -- two
 
          8       questions:  One, I wanted to ask you about
 
          9       tuition, and how it compares to other states in
 
         10       Florida.  Let me ask that first --
 
         11            CHANCELLOR REED:  We rank about 48th of the
 
         12       50 states, so we stay right at the bottom in
 
         13       tuition.  So tuition is not a hindrance to
 
         14       access for our students.
 
         15            COMMISSIONER CRAWFORD:  In fact, may be a
 
         16       hindrance because it doesn't produce the -- help
 
         17       relieve the capacity --
 
         18            CHANCELLOR REED:  It doesn't help produce
 
         19       more professors, more sections, you know -- that
 
         20       tuition is a two-edged sword.  If -- if we had
 
         21       more faculty, more sections, more offerings, we
 
         22       might be able to get people out faster.
 
         23            COMMISSIONER CRAWFORD:  So it's -- that's
 
         24       a -- that's a --
 
         25            CHANCELLOR REED:  We are considered the
 
 
 
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          1       best deal in America as far as quality --
 
          2            COMMISSIONER CRAWFORD:  No question about
 
          3       it.
 
          4            CHANCELLOR REED:  -- versus price.
 
          5            COMMISSIONER CRAWFORD:  No question about
 
          6       that.
 
          7            Let me ask you this, Charlie, have you
 
          8       calculated the percentage -- I would say the
 
          9       average percentage of increase you'll need over
 
         10       the next ten to twelve years to meet the tidal
 
         11       wave demands?
 
         12            CHANCELLOR REED:  We have.  And in -- we
 
         13       have recommended somewhere between a 6 and
 
         14       10 percent increase in tuition over the next
 
         15       ten years.
 
         16            We have felt, and the Board has adopted the
 
         17       policy, the business higher education
 
         18       partnership in Florida led by Chuck Cobb of
 
         19       Miami, has looked out over the next ten years,
 
         20       and felt that Florida should move closer to the
 
         21       national average of tuition, rather than being
 
         22       at the bottom.
 
         23            But also recognize that there need to be a
 
         24       partnership.  And that was that the general
 
         25       citizens through the Legislature had to continue
 
 
 
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          1       to fund universities --
 
          2            COMMISSIONER CRAWFORD:  Right.
 
          3            CHANCELLOR REED:  -- that we in the
 
          4       universities had to go out and raise our own
 
          5       money.  This past Friday night, the
 
          6       University of Florida announced a 500 million
 
          7       dollar capital campaign to do that.
 
          8            And then lastly, to be more efficient and
 
          9       productive in the university system.  And we
 
         10       have gotten in the last two or three years, some
 
         11       pretty good productivity increases in our work
 
         12       force.
 
         13            So it's a partnership that has to be put
 
         14       together.
 
         15            COMMISSIONER CRAWFORD:  Thank you.
 
         16            GOVERNOR CHILES:  Thank you very much,
 
         17       Chancellor.
 
         18            CHANCELLOR REED:  Thank you.
 
         19            MR. PIERSON:  Commissioner Brogan will
 
         20       present the Department of Education and
 
         21       Legislative Budget Request.
 
         22            COMMISSIONER BROGAN:  Governor, members of
 
         23       the State Board, there's a small chart there,
 
         24       but --
 
         25            (Commissioner Crawford exited the room.)
 
 
 
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          1            COMMISSIONER BROGAN:  -- you have a copy in
 
          2       front of you.  If you're like me, I couldn't
 
          3       read that on my best day, so we'll work off of
 
          4       what we have in front of us.
 
          5            I did a -- a lengthy presentation for the
 
          6       Blue Ribbon Commission on much of the detail
 
          7       included in the budget.  You and your staff,
 
          8       of course, have had the budget, and had the
 
          9       opportunity to review it.
 
         10            So what I'm going to do with you this
 
         11       morning, much like the Chancellor, is simply hit
 
         12       some of the highlights of the proposed budget,
 
         13       and then certainly take any questions that you
 
         14       all might have.
 
         15            The budget increase that we are proposing
 
         16       for 98-99 overall is a 668 million dollar
 
         17       increase in public school funding.  Within that
 
         18       668 million, there, of course, lie a number of
 
         19       initiatives that -- that we're excited about.
 
         20            One, of course, is just to meet the needs
 
         21       of growth.  We're trying to do that in two
 
         22       ways:  One is a 230 million dollar increase, and
 
         23       that is -- of that six sixty-eight, and that is
 
         24       to simply accommodate the 55,000 new students
 
         25       that we expect in Florida schools.
 
 
 
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          1            And, two, as you know, we have asked the
 
          2       Legislature --
 
          3            (Commissioner Crawford entered the room.)
 
          4            COMMISSIONER BROGAN:  -- to consider more
 
          5       than doubling the amount of State funding for
 
          6       local school construction over the next
 
          7       five years to generate approximately a
 
          8       billion-and-a-half dollars to meet the
 
          9       facilities end of that particular need.
 
         10            We also are asking for 24 million dollars
 
         11       increase in textbook and instructional
 
         12       materials.  And that would fully fund the
 
         13       Florida Administrator of Instructional Materials
 
         14       Association study, and take us to a total of
 
         15       183 million dollars.
 
         16            Remembering, we actually still have a foot
 
         17       in both worlds; that is, printed material, and
 
         18       that of technology.
 
         19            Along that line, but not on the chart,
 
         20       we're requesting 80 million dollars -- new
 
         21       dollars -- again this year in the area of
 
         22       technology to be distributed among the 67 school
 
         23       districts who, in harmony with the Florida
 
         24       Distance Learning Network, must develop a plan
 
         25       as to how they would then appropriate those
 
 
 
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          1       dollars within their own district.  And that can
 
          2       be not only for hardware and software, but also
 
          3       the important issue of teacher training as well.
 
          4            A 43 million dollar increase for teacher
 
          5       training and professional development.  And that
 
          6       includes what's already available, and brings
 
          7       the State to almost 75 million dollars really in
 
          8       teacher training and retraining.
 
          9            We're convinced that if we're going to help
 
         10       our youngsters get to those 21st century
 
         11       standards that this Board has -- has been so
 
         12       proud of, we need to look at our present work
 
         13       force, and make certain that they have the
 
         14       21st century skills to help get them there.
 
         15            So we're asking the Legislature for a
 
         16       number of items in this particular area.  One is
 
         17       to put a satellite dish on every school in the
 
         18       state of Florida.  We believe that not only will
 
         19       that provide greater opportunity and access to
 
         20       students, but in terms of some of the major
 
         21       staff development and training needs that are
 
         22       necessary in every district, and virtually every
 
         23       school in the state, through some purchased,
 
         24       leased, or created staff development
 
         25       opportunities, we'll be in a position to beam
 
 
 
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          1       those out to teachers and administrators all
 
          2       over Florida, who are very much in need of those
 
          3       additional opportunities.
 
          4            Couple of examples is technology.  And some
 
          5       basic technology training for teachers all over
 
          6       the State, some higher and more advanced
 
          7       technology training, but also issues such as
 
          8       ESOL.
 
          9            Since teachers all over the state are
 
         10       dealing with the ESOL -- which is English for
 
         11       Speakers of Other Languages -- requirement, we
 
         12       know that some standardized, statewide training
 
         13       would be helpful to our teachers in order to
 
         14       meet that particular need.
 
         15            We're also asking the State Legislature to
 
         16       help us with -- overcome the greatest problem
 
         17       that we face with teacher training and staff
 
         18       development, and that's simply time on task.
 
         19            And to that end, we're asking for almost
 
         20       15 million dollars to provide what may be up to
 
         21       four full additional days for teacher training
 
         22       and retraining by providing some stipends, along
 
         23       with the district's ability to reconfigure their
 
         24       existing calendar, and set aside some days out
 
         25       of their teacher work days, non-student days,
 
 
 
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          1       specifically earmarked for staff development.
 
          2            I think we all agree that while we are
 
          3       continuing to pull teachers away from children,
 
          4       because that's the only time we have available
 
          5       for staff development, that is not the best case
 
          6       scenario.  Children need those teachers.  And
 
          7       we're asking the Legislature to assist in that
 
          8       regard to make certain that we have some
 
          9       additional time for that very important training
 
         10       and retraining.
 
         11            We're asking for a 20 million dollar
 
         12       increase in the area of school recognition.
 
         13       Last year the Legislature passed the new law
 
         14       that will allow us to create a recognition
 
         15       program so that any school in the state of
 
         16       Florida ultimately, who can take their children
 
         17       to higher levels of student achievement with new
 
         18       and innovative practice, would have a sizable
 
         19       recognition award granted to that school to be
 
         20       used at the discretion of that school.
 
         21            And we've talked about between 100 and
 
         22       150 such schools in the state of Florida looking
 
         23       at rewards of up to $100,000, which could then
 
         24       be distributed among faculty, staff, school
 
         25       advisory council, and placed back into the
 
 
 
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          1       system.
 
          2            Sixty-one million dollar increase in
 
          3       dropout prevention funding.  That would be also
 
          4       tied to the new performance based funding
 
          5       model.
 
          6            Again, if we're going to help some of
 
          7       Florida's most disadvantaged and disengaged
 
          8       students get to those world class standards, we
 
          9       believe that through a performance based funding
 
         10       program, we can drive some increases through our
 
         11       dropout prevention programs, and reward students
 
         12       through higher student achievement levels.
 
         13            Sixteen million dollars for reading
 
         14       improvement initiatives.  The Governor helped
 
         15       champion a cause last year through the Reading
 
         16       Recovery Program, which is in place now in a
 
         17       number of districts around the state.  We want
 
         18       to continue to make those kinds of opportunities
 
         19       available to districts who are looking for good,
 
         20       solid, successful, and research based reading
 
         21       initiatives to reach out to Florida's students.
 
         22            Two million dollars for special assistance
 
         23       for low performing schools.  You're aware that
 
         24       we are now in our third year of the critically
 
         25       low performing schools program.  Out of the
 
 
 
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          1       original 158 schools identified, I believe
 
          2       there's now some 25 to 30 of those schools in
 
          3       the third year still remaining on the list.
 
          4            If any of those schools are remaining on
 
          5       that list into the fourth year, as is a part of
 
          6       the program, we may be coming to the State Board
 
          7       of Education with some required action.
 
          8            The dollars that you see there would be to
 
          9       create a pot of money so that if any of those
 
         10       required actions necessitated some additional
 
         11       help from this body, we would have a place to go
 
         12       for that.
 
         13            Twenty million dollars for implementation
 
         14       of public school choice.  As per the legislation
 
         15       this last year, each district of the 67 are now
 
         16       required to come up with their own plans as to
 
         17       how they will broaden the opportunities for
 
         18       public school choice initiatives within their
 
         19       district.
 
         20            Those plans are now coming back to the
 
         21       Department, and we will be ultimately going to
 
         22       the Legislature with a more refined number as to
 
         23       how we can help some of those districts who are
 
         24       ready next year to implement their plans for
 
         25       public school choice opportunities to do so.
 
 
 
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          1       And that might be with some additional
 
          2       transportation costs, it might be with technical
 
          3       assistance, depending on their initiative.
 
          4            Twenty million dollar increase in
 
          5       transportation.  And that is to fund the
 
          6       workload.  That means the additional students
 
          7       who are coming into Florida schools and help
 
          8       maintain the growth there.  This would pretty
 
          9       much increase the per student allocation to
 
         10       $178, which is about a 6.3 per-- 6.36 percent
 
         11       total budget increase over last year.
 
         12            And, again, also included in this is a
 
         13       significant boost in the amount of student
 
         14       financial assistance, not only to fully fund the
 
         15       second year of the Bright Future Scholarship
 
         16       Program, which has been wildly successful, but
 
         17       also to put a significant amount of new money
 
         18       into purely Needs-Based Student Financial
 
         19       assistance, not only to meet our statutory
 
         20       obligation, but also to provide, as the
 
         21       Chancellor mentioned, the day and time when the
 
         22       last problem that a prepared student faces in
 
         23       the state of Florida to gain access to a
 
         24       postsecondary education is financial.
 
         25            (Secretary Mortham exited the room.)
 
 
 
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          1            COMMISSIONER BROGAN:  I should also point
 
          2       out on that score that there is a significant
 
          3       attrition rate among many Florida students who
 
          4       obtain Needs-Based Student Financial
 
          5       assistance.
 
          6            And we have begun a study, a tracking
 
          7       study, of all students receiving student
 
          8       financial assistance, be it through the Bright
 
          9       Future Scholarship Program or the Take Stock in
 
         10       Children Program, or the Needs-Based Student
 
         11       Financial Assistance programs.  We want to find
 
         12       out where those students are in the pipeline.
 
         13            But if we lose those students along the
 
         14       way, it's very important that we know why so
 
         15       that ultimately we can go back and make some
 
         16       changes in what we're doing and how we're doing
 
         17       it to see if we can provide additional support
 
         18       to those students so that they can complete
 
         19       their postsecondary opportunity.
 
         20            We also, as I mentioned, are looking to
 
         21       fully fund the second year of the Bright Future
 
         22       Scholarship Program.  We think that'll be about
 
         23       a 25 million dollar additional task, on top of
 
         24       what we're already receiving for
 
         25       Bright Futures.
 
 
 
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          1            And now I think we're up to about
 
          2       42,000 students who are somewhere in advanced
 
          3       vocational technical, community college, or the
 
          4       university system, receiving Bright Future
 
          5       Scholarships.
 
          6            That whole issue we will continue to look
 
          7       at.  And I was asked by the press this morning
 
          8       if, in fact, there may be some students in the
 
          9       system who might be taking less rigorous
 
         10       course work to make certain that they achieve
 
         11       that Bright Future Scholarship, and that is a
 
         12       concern.  If there's only one.  And so as
 
         13       Georgia did, we'll constantly be looking at the
 
         14       criteria.
 
         15            And if we need to put in a weighted grade
 
         16       point average to make certain that students are
 
         17       in those more rigorous and challenging courses
 
         18       aren't penalized based on the GPA requirement,
 
         19       then we'll certainly do that, and make whatever
 
         20       changes we need to to the Bright Future
 
         21       Scholarship Program, to make sure it's the best
 
         22       in the country.
 
         23            So, Governor, and members of the Cabinet --
 
         24       State Board, in this case --
 
         25            (Secretary Mortham entered the room.)
 
 
 
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          1            COMMISSIONER BROGAN:  -- that's a -- a
 
          2       highlighted look at the overall budget, and I'd
 
          3       be happy to try to answer any questions that you
 
          4       all might have.
 
          5            GOVERNOR CHILES:  Yes, sir.
 
          6            COMPTROLLER MILLIGAN:  A question, Frank.
 
          7       You may or may not want to address it or be able
 
          8       to address it.
 
          9            But I was taken by the Chancellor's
 
         10       presentation and that pie chart that he had in
 
         11       terms of his anticipated funds, where they were
 
         12       going to come from, and a fairly significant
 
         13       reduction in the contribution from the lottery
 
         14       going to the Chancellor's budget.
 
         15            What is your projection of that particular
 
         16       source of funding for education?
 
         17            COMMISSIONER BROGAN:  The lottery appears
 
         18       to be going through what most lotteries in the
 
         19       country go through, and that is that after a
 
         20       certain number of years, they begin to flatten.
 
         21            The experts tell me for two reasons:  One
 
         22       is that some people simply tire of playing; the
 
         23       other reason is that new games are sometimes
 
         24       necessary, or additional kinds of lottery
 
         25       opportunities, to continue to keep the interest
 
 
 
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          1       up of the population.
 
          2            The Bright Future Scholarship, as it
 
          3       relates to the Florida Lottery, of course, will
 
          4       be about a 200 million dollar investment out of
 
          5       lottery dollars once it's fully funded.  So
 
          6       students who are in a four-year program, and
 
          7       others, will have full funding.
 
          8            But we do recognize that if we don't
 
          9       continue to increase the general revenue share
 
         10       of State budget going to education, not only
 
         11       will the lottery continue to support supplantive
 
         12       dollars, rather than supplemental dollars, but
 
         13       will begin a second phase of problem, and that
 
         14       is a reduction in the amount of general revenue
 
         15       and lottery money going into the system, and
 
         16       that would be the first time that ever happened.
 
         17            The good news, at least temporarily, is
 
         18       that this past legislative session, the House
 
         19       and Senate got the general revenue share to --
 
         20       going to all of education back up from what was
 
         21       three years ago 49 percent and change, it's back
 
         22       up now to almost 53 percent.  So we're moving in
 
         23       the right direction.
 
         24            But what I continue to tell the leadership
 
         25       is that whenever we earmark a lottery dollar for
 
 
 
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          1       a specific activity, be it pre-kindergarten, or
 
          2       be it the Bright Future Scholarship Program,
 
          3       we've got to make certain that we restore that
 
          4       dollar, and then some, in general revenue to
 
          5       make certain that we're still providing a level
 
          6       playing field.
 
          7            And we have a long way to go, General, in
 
          8       that regard.  We were as high at one point in
 
          9       this state as 59 percent and change of general
 
         10       revenue going to all of education, not just
 
         11       K-12, but K-12, community college, and
 
         12       university.  So we have a significant way to go
 
         13       on that increase in general revenue.
 
         14            GOVERNOR CHILES:  I -- I think,
 
         15       Mr. Secretary, you have an ambitious budget,
 
         16       quite a bit of increases.
 
         17            I enjoy the -- I kind of wish I enjoyed
 
         18       being able to sit where you sit and be able to
 
         19       propose a budget without having to propose any
 
         20       revenues or the other side of that budget.
 
         21            But understanding that, I think that you've
 
         22       made some major increases with, again, some
 
         23       major good reasons for increasing those.
 
         24            I like what you're doing in the reading
 
         25       improvement, and recognizing that and the
 
 
 
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                                September 25, 1997
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          1       textbook and instructional materials, which we
 
          2       were very low in, and we're now beginning to
 
          3       catch up.
 
          4            In looking at a number of these others, and
 
          5       listening to some of the innovations, a
 
          6       satellite dish for every school; ESOL,
 
          7       broadening of that, I was in Holmes Braddock
 
          8       High School, the largest high school in the
 
          9       state yesterday.  Their ESOL class has
 
         10       53 students in a portable.
 
         11            You know, if there's any place where it
 
         12       seems to me you ought to have a lower
 
         13       pupil-teacher ratio, it's trying to teach
 
         14       English as a first language to some student.
 
         15       And not all of them are Spanish even down
 
         16       there.  They may be -- it may be Creole, it may
 
         17       be Indian, it may be some other language that
 
         18       they're trying -- a teacher is trying to teach
 
         19       as well.
 
         20            So certainly that's a -- that's a major
 
         21       thing.
 
         22            Seeing the increase that you have for
 
         23       dropout funding, 61 million dollars, bringing us
 
         24       to a total of 501 million dollars, that's a heck
 
         25       of an item that we're having to pay for
 
 
 
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                                September 25, 1997
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          1       remediation for failures sort of along the way.
 
          2            With the -- all of those good words,
 
          3       there's a glaring omission to me in this budget,
 
          4       and that's full service schools are left out.
 
          5       That's 11 million dollars, I think.
 
          6            And I know on the one hand that perhaps
 
          7       you know that I will fight to try to put that
 
          8       back.  But on the other hand, what I -- what
 
          9       concerns me is that this goes out as the
 
         10       Department of Education's budget as to what the
 
         11       pressing needs are, and we highlight all of
 
         12       these needs and all of these increases, and we
 
         13       leave out full service schools.
 
         14            Now, if we're concerned about dropout
 
         15       prevention, then I think we ought to be
 
         16       concerned about full service schools.  If
 
         17       there's a quotient that would help in the
 
         18       dropout prevention, if we're concerned about
 
         19       getting satellites -- and I think that's an
 
         20       excellent thing to bring that new knowledge and
 
         21       all -- and if we're concerned about that
 
         22       five hundred and -- and one million dollars that
 
         23       we're spending on that dropout prevention, all
 
         24       of those things, it seems to me that full
 
         25       service schools is just a major, major item.
 
 
 
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          1            And certainly you can make an argument, it
 
          2       ought to be funded from somewhere else.  But
 
          3       we're talking about whether this is a basic
 
          4       quotient of providing a proper education system
 
          5       for our kids.  And I would submit that those
 
          6       full service schools are one of the best tools
 
          7       that we have out there today.  And failing to
 
          8       recognize that -- or failing to speak to that is
 
          9       just a glaring omission.
 
         10            COMMISSIONER BROGAN:  Well, Governor, I
 
         11       appreciate your position, and, again, you and I
 
         12       have talked about this issue for the past
 
         13       three years.
 
         14            And with all due respect, I do understand
 
         15       how you feel about that, and I do not fight, and
 
         16       even endorse, putting the full service school
 
         17       money in other places in the budget where
 
         18       I think they're more appropriately housed,
 
         19       because I do see some good full service schools
 
         20       activities taking place out there.
 
         21            So we do agree that those full service
 
         22       schools dollars can make an appreciable
 
         23       difference when used properly out there in the
 
         24       public education system.  It is merely, as I've
 
         25       said in the past -- and rational people can
 
 
 
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                                                              42
 
          1       disagree on rational issues -- a matter of
 
          2       placement, and that is the bottom line.  That's
 
          3       the only issue where we differ.
 
          4            So I -- I do understand your position, as I
 
          5       always have in the past, and I respect your
 
          6       position.
 
          7            GOVERNOR CHILES:  I guess I consider most
 
          8       rational people who agree with me.
 
          9            MR. PIERSON:  The community colleges will
 
         10       not be giving a presentation on their budget,
 
         11       but have Syd McKenzie and Howard Campbell
 
         12       available to answer any questions you might
 
         13       have.
 
         14            GOVERNOR CHILES:  All right.
 
         15            MR. McKENZIE:  Governor, members of the
 
         16       Cabinet, we have presented the budget in some
 
         17       detail to all of y'all.  Mr. Maxwell regrets his
 
         18       inability to be here today.
 
         19            We're here to answer questions, if you have
 
         20       them, on the budget.
 
         21            GOVERNOR CHILES:  Are there any questions?
 
         22            There don't seem to be.
 
         23            Thank you, sir.
 
         24            MR. McKENZIE:  Thank you.
 
         25            COMMISSIONER BROGAN:  And I guess we need a
 
 
 
                        ACCURATE STENOTYPE REPORTERS, INC.
 
                             STATE BOARD OF EDUCATION
                                September 25, 1997
                                                              43
 
          1       vote on all three?
 
          2            MR. PIERSON:  Our recommendation is for
 
          3       approval.
 
          4            COMPTROLLER MILLIGAN:  I'll move the item.
 
          5            COMMISSIONER BROGAN:  I'll second.
 
          6            GOVERNOR CHILES:  The item has been moved
 
          7       and seconded.
 
          8            Without objection, the budget is submitted.
 
          9            MR. PIERSON:  Item 3 is Rule 6A-14.0301,
 
         10       Amendment, Community College Withdrawal
 
         11       Forgiveness.
 
         12            The recommendation, that this rule be
 
         13       withdrawn.
 
         14            COMMISSIONER BROGAN:  I'll move the
 
         15       withdrawal, Governor.
 
         16            SECRETARY MORTHAM:  Second.
 
         17            GOVERNOR CHILES:  Moved and seconded.
 
         18            Without objection, it's withdrawn.
 
         19            MR. PIERSON:  Item 4, appointments to the
 
         20       Florida Keys Community College Board of
 
         21       Trustees:  Appointments of Patricia A. Almeda,
 
         22       reappointment, through May 31st, 2001; and
 
         23       Mona C. Clark, reappointment, through May 31st,
 
         24       2001.
 
         25            COMMISSIONER BROGAN:  Move the item.
 
 
 
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                             STATE BOARD OF EDUCATION
                                September 25, 1997
                                                              44
 
          1            ATTORNEY GENERAL BUTTERWORTH:  Second.
 
          2            SECRETARY MORTHAM:  Second.
 
          3            GOVERNOR CHILES:  Moved and seconded.
 
          4            Without objection, it's approved.
 
          5            MR. PIERSON:  Thank you.
 
          6            (The State Board of Education Agenda was
 
          7       concluded.)
 
          8                             *
 
          9
 
         10
 
         11
 
         12
 
         13
 
         14
 
         15
 
         16
 
         17
 
         18
 
         19
 
         20
 
         21
 
         22
 
         23
 
         24
 
         25
 
 
 
                        ACCURATE STENOTYPE REPORTERS, INC.
 
                         DEPARTMENT OF VETERANS' AFFAIRS
                                September 25, 1997
                                                              45
 
          1            GOVERNOR CHILES:  Veterans' Affairs.
 
          2            MR. RAINWATER:  Good morning,
 
          3       Governor Chiles, and members of the Cabinet.
 
          4            Your Department of Veterans' Affairs comes
 
          5       to you this morning with three agenda items.
 
          6            Item number 1, we request you accept our
 
          7       quarterly reports for the third and fourth
 
          8       quarters of this past fiscal year.
 
          9            We recommend --
 
         10            ATTORNEY GENERAL BUTTERWORTH:  Motion to
 
         11       accept.
 
         12            COMMISSIONER BROGAN:  Second.
 
         13            COMPTROLLER MILLIGAN:  Seconded.
 
         14            GOVERNOR CHILES:  Moved and seconded.
 
         15            Without objection, it's approved.
 
         16            MR. RAINWATER:  Thank you.
 
         17            Our Legislative Budget Request for fiscal
 
         18       year 1998-1999, which has been previously
 
         19       submitted, for the record, in some detail.
 
         20            I would be remiss if I didn't comment on
 
         21       the significant increase in our Legislative
 
         22       Budget Request.  That primarily reflects the --
 
         23       the requirement for 131 full-time equivalent
 
         24       employees as staff for the new Lopez Veterans --
 
         25       State veterans nursing home now under
 
 
 
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                         DEPARTMENT OF VETERANS' AFFAIRS
                                September 25, 1997
                                                              46
 
          1       construction in Pasco County, expected to open
 
          2       next July.
 
          3            The significant part of our LBR is to staff
 
          4       the new nursing home.
 
          5            The only other three additional
 
          6       full-time equivalent positions we're requesting
 
          7       is to better serve the veterans of the State of
 
          8       Florida to ensure that the United States
 
          9       Department of Veterans' Affairs continues at the
 
         10       level of expenditure they currently are
 
         11       expending in the State of Florida, 7.5 billion
 
         12       dollars in our state.
 
         13            With those comments, we request the
 
         14       acceptance of our Legislative Budget Request,
 
         15       and I'm prepared to answer questions, if there
 
         16       are any.
 
         17            SECRETARY MORTHAM:  Move approval.
 
         18            COMMISSIONER BROGAN:  Second.
 
         19            GOVERNOR CHILES:  Moved and seconded.
 
         20            Without objection, it's approved.
 
         21            MR. RAINWATER:  Thank you.
 
         22            Third item is our capital improvements
 
         23       plan.
 
         24            Once again, I would be remiss if I didn't
 
         25       comment on the significant increase in the
 
 
 
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                         DEPARTMENT OF VETERANS' AFFAIRS
                                September 25, 1997
                                                              47
 
          1       capital improvements plan budget.
 
          2            This reflects 6 million dollars per year
 
          3       for the next two years for the construction of
 
          4       an additional State veterans' nursing home.  The
 
          5       siting process for that nursing home is underway
 
          6       as we speak.
 
          7            We have received six submissions thus far.
 
          8       The ending -- the end of this month is the
 
          9       deadline for submission.  We have received
 
         10       requests -- siting requests from Madison County,
 
         11       Okaloosa County, Holmes, Broward, Lee, and
 
         12       Charlotte Counties.  And those are under
 
         13       consideration.  There may be one or two more.
 
         14            Those funds are per year, 2 million dollars
 
         15       in State rounded and State outlays, and
 
         16       4 million dollars in Federal outlays to
 
         17       construct the new nursing home.
 
         18            We'd request approval of our capital
 
         19       improvements plan.
 
         20            SECRETARY MORTHAM:  Move approval.
 
         21            COMMISSIONER BROGAN:  Second.
 
         22            GOVERNOR CHILES:  Moved and seconded.
 
         23            Without objection, that's approved.
 
         24            MR. RAINWATER:  Thank you very much.
 
         25            GOVERNOR CHILES:  Thank you, sir.
 
 
 
                        ACCURATE STENOTYPE REPORTERS, INC.
 
                         DEPARTMENT OF VETERANS' AFFAIRS
                                September 25, 1997
                                                              48
 
          1            (The Department of Veterans' Affairs Agenda
 
          2       was concluded.)
 
          3                             *
 
          4
 
          5
 
          6
 
          7
 
          8
 
          9
 
         10
 
         11
 
         12
 
         13
 
         14
 
         15
 
         16
 
         17
 
         18
 
         19
 
         20
 
         21
 
         22
 
         23
 
         24
 
         25
 
 
 
                        ACCURATE STENOTYPE REPORTERS, INC.
 
                   DEPARTMENT OF HIGHWAY SAFETY/MOTOR VEHICLES
                                September 25, 1997
                                                              49
 
          1            GOVERNOR CHILES:
 
          2       Department of Highway Safety.
 
          3            MR. DICKINSON:  Good morning, Governor and
 
          4       Cabinet.
 
          5            Item 1 is recommend appointment of the
 
          6       following doctor to a four-year term:
 
          7       Dr. Sprehe, a psychiatrist in Tampa.
 
          8            COMMISSIONER BROGAN:  Move the item.
 
          9            COMPTROLLER MILLIGAN:  Second.
 
         10            GOVERNOR CHILES:  Moved and seconded.
 
         11            Without objection, it's approved.
 
         12            MR. DICKINSON:  Item 2 is submission of
 
         13       accomplishments for our performance contract
 
         14       from last year for the Executive Director.
 
         15            I will tell you, we achieved all of our
 
         16       goals, save one, and that was a robbery task
 
         17       force down in Miami that was -- there was really
 
         18       no need to fund it any more.  It was a joint
 
         19       effort between FDLE and the Highway Patrol.  And
 
         20       that was the only one that -- that was not
 
         21       achieved.
 
         22            COMPTROLLER MILLIGAN:  Move the item.
 
         23            ATTORNEY GENERAL BUTTERWORTH:  Second.
 
         24            GOVERNOR CHILES:  Moved and seconded.
 
         25            Without objection, it's approved.
 
 
 
                        ACCURATE STENOTYPE REPORTERS, INC.
 
                   DEPARTMENT OF HIGHWAY SAFETY/MOTOR VEHICLES
                                September 25, 1997
                                                              50
 
          1            MR. DICKINSON:  Item 3 is submission of our
 
          2       97-98 performance contract.
 
          3            ATTORNEY GENERAL BUTTERWORTH:  Motion.
 
          4            COMPTROLLER MILLIGAN:  Second.
 
          5            GOVERNOR CHILES:  Moved and seconded.
 
          6            Without objection, it's approved.
 
          7            MR. DICKINSON:  Item 4 is submission of the
 
          8       Department Legislative Budget Request for the
 
          9       98-99 fiscal year.
 
         10            I will tell you that we have about
 
         11       50 percent of our requested increase is the
 
         12       law enforcement component, about 40 percent are
 
         13       some items that'll help in the service area with
 
         14       regard to -- there are no personnel items in
 
         15       that 40 percent.  These are all automation.
 
         16            And then 10 percent of our budget request
 
         17       are cars, as per the DMS schedule for time and
 
         18       mileage.
 
         19            COMPTROLLER MILLIGAN:  Move the item.
 
         20            ATTORNEY GENERAL BUTTERWORTH:  Question,
 
         21       Governor?
 
         22            GOVERNOR CHILES:  Question.
 
         23            ATTORNEY GENERAL BUTTERWORTH:  Okay.  Fred,
 
         24       is FHP the only aspect of your agency which is
 
         25       funded by general revenue?
 
 
 
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                   DEPARTMENT OF HIGHWAY SAFETY/MOTOR VEHICLES
                                September 25, 1997
                                                              51
 
          1            MR. DICKINSON:  Yes, sir.
 
          2            ATTORNEY GENERAL BUTTERWORTH:  Okay.  And
 
          3       you do not see yet any increase in troopers --
 
          4       2 million increase in troopers, do you?  I mean,
 
          5       what are you usually -- what are you
 
          6       averaging --
 
          7            MR. DICKINSON:  This past year we didn't,
 
          8       the previous year we did.
 
          9            ATTORNEY GENERAL BUTTERWORTH:  Okay.
 
         10       Governor, I sort of -- I've always wondered from
 
         11       the standpoint of the Department, everything
 
         12       else is self-sufficient, that if somehow or
 
         13       other the gas tax was linked to the Patrol
 
         14       somehow, that we'd be able to keep pace with the
 
         15       number of troopers that we really need in the
 
         16       State of Florida, as opposed to dealing with it
 
         17       from the issue of -- from a general revenue.
 
         18       And we'd free up --
 
         19            How much is your FHP budget, about
 
         20       130 million?
 
         21            MR. DICKINSON:  Yes, sir.
 
         22            ATTORNEY GENERAL BUTTERWORTH:  Okay.
 
         23            MR. DICKINSON:   And not all of that is
 
         24       general revenue.
 
         25            ATTORNEY GENERAL BUTTERWORTH:  I don't know
 
 
 
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                   DEPARTMENT OF HIGHWAY SAFETY/MOTOR VEHICLES
                                September 25, 1997
                                                              52
 
          1       what the trust funds are at DOT anymore, but
 
          2       I -- but I think it's maybe something to look at
 
          3       in the future.  But --
 
          4            I second the item.
 
          5            GOVERNOR CHILES:  It's been moved and then
 
          6       seconded?
 
          7            Did you second?
 
          8            ATTORNEY GENERAL BUTTERWORTH:  (Nodding
 
          9       head.)
 
         10            GOVERNOR CHILES:  Seconded.
 
         11            Without objection, it's approved.
 
         12            MR. DICKINSON:   Governor, Item 5 is
 
         13       request approval of a contract with the
 
         14       Oracle Corporation.  This is a partnership
 
         15       between the Department of Law Enforcement,
 
         16       ourselves, and Department of Corrections for the
 
         17       tracking of sexual predators once they leave the
 
         18       correctional system.
 
         19            And this is a software component for
 
         20       issuing the digitized information that we have
 
         21       in our -- in our shop to FDLE, so they can
 
         22       disperse that information to the local
 
         23       community.
 
         24            COMMISSIONER BROGAN:  Move approval.
 
         25            ATTORNEY GENERAL BUTTERWORTH:  Second.
 
 
 
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                   DEPARTMENT OF HIGHWAY SAFETY/MOTOR VEHICLES
                                September 25, 1997
                                                              53
 
          1            COMPTROLLER MILLIGAN:  Second.
 
          2            GOVERNOR CHILES:  Moved and seconded.
 
          3            Without objection, that's approved.
 
          4            MR. DICKINSON:  Thank you, Governor.
 
          5            GOVERNOR CHILES:  Thank you, sir.
 
          6            (The Department of Highway Safety and
 
          7       Motor Vehicles Agenda was concluded.)
 
          8                             *
 
          9
 
         10
 
         11
 
         12
 
         13
 
         14
 
         15
 
         16
 
         17
 
         18
 
         19
 
         20
 
         21
 
         22
 
         23
 
         24
 
         25
 
 
 
                        ACCURATE STENOTYPE REPORTERS, INC.
 
                              DEPARTMENT OF REVENUE
                                September 25, 1997
                                                              54
 
          1            GOVERNOR CHILES:  Department of Revenue.
 
          2            MR. FUCHS:  Good morning.
 
          3            Item 1 is request for approval of the
 
          4       minutes of the September 9th, 1997, meeting.
 
          5            COMMISSIONER BROGAN:  Move the minutes.
 
          6            SECRETARY MORTHAM:  Second.
 
          7            COMPTROLLER MILLIGAN:  Second.
 
          8            GOVERNOR CHILES:  Moved and seconded.
 
          9            Without objection, they're approved.
 
         10            MR. FUCHS:  Item 2 is a request for
 
         11       approval and authority to enter into a contract
 
         12       with the International Association of Assessing
 
         13       Officers to provide certification courses for
 
         14       governmental officials and employees.
 
         15            We've had these contracts for a number of
 
         16       years.  A five-year contract just expired.
 
         17       Essentially we're continuing the program.
 
         18            COMMISSIONER BROGAN:  Move approval.
 
         19            SECRETARY MORTHAM:  Second.
 
         20            GOVERNOR CHILES:  Moved and seconded.
 
         21            Without objection, that's approved.
 
         22            MR. FUCHS:  Item 3, request approval and
 
         23       authority to file with the Secretary of State
 
         24       under Chapter 120, Florida Statutes, the repeal
 
         25       of Rule Chapter 12A-18, Florida
 
 
 
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                              DEPARTMENT OF REVENUE
                                September 25, 1997
                                                              55
 
          1       Administrative Code, having to do with the
 
          2       advanced disposal fee program.
 
          3            SECRETARY MORTHAM:  Move approval.
 
          4            COMMISSIONER BROGAN:  Second.
 
          5            GOVERNOR CHILES:  Moved and seconded.
 
          6            Without objection, that's approved.
 
          7            MR. FUCHS:  Governor, members of the
 
          8       Cabinet, I would request deferral of Item 4
 
          9       until the October 21st, 1997, meeting.
 
         10            COMMISSIONER BROGAN:  Move deferral.
 
         11            COMPTROLLER MILLIGAN:  Second.
 
         12            GOVERNOR CHILES:  Moved and seconded.
 
         13            Without objection, Item 4 is deferred.
 
         14            MR. FUCHS:  Item 5 is a request for
 
         15       authority to enter into a multiple -- a series
 
         16       of contracts between the Department of Revenue
 
         17       and the 15 certified public accounting firms
 
         18       listed, I believe, in your package for tax
 
         19       compliance audits.
 
         20            COMPTROLLER MILLIGAN:  Move approval.
 
         21            COMMISSIONER BROGAN:  Second.
 
         22            ATTORNEY GENERAL BUTTERWORTH:  Second.
 
         23            GOVERNOR CHILES:  Moved and seconded.
 
         24            Without objection, it's approved.
 
         25            MR. FUCHS:  And Item 6 is request approval
 
 
 
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                              DEPARTMENT OF REVENUE
                                September 25, 1997
                                                              56
 
          1       and acceptance of my performance contract for
 
          2       1997-98.  It's the year coming.
 
          3            COMPTROLLER MILLIGAN:  I move approval.
 
          4            COMMISSIONER BROGAN:  Second.
 
          5            GOVERNOR CHILES:  Moved and seconded.
 
          6            Without objection, that's approved.
 
          7            MR. FUCHS:  Thank you.
 
          8            GOVERNOR CHILES:  Thank you, sir.
 
          9            (The Department of Revenue Agenda was
 
         10       concluded.)
 
         11                             *
 
         12
 
         13
 
         14
 
         15
 
         16
 
         17
 
         18
 
         19
 
         20
 
         21
 
         22
 
         23
 
         24
 
         25
 
 
 
                        ACCURATE STENOTYPE REPORTERS, INC.
 
                            ADMINISTRATION COMMISSION
                                September 25, 1997
                                                              57
 
          1            GOVERNOR CHILES:  Administration
 
          2       Commission.
 
          3            DR. BRADLEY:  Item number 1, recommend
 
          4       approval of the minutes for the meeting held
 
          5       September 9th --
 
          6            SECRETARY MORTHAM:  Move it.
 
          7            DR. BRADLEY:  -- 1997.
 
          8            COMMISSIONER BROGAN:  Second.
 
          9            GOVERNOR CHILES:  Moved and seconded.
 
         10            Without objection, it's approved.
 
         11            DR. BRADLEY:  Item number 2 is recommend
 
         12       approval of the transfer of six positions and
 
         13       budget from the Department of Business and
 
         14       Professional Regulation to the Department of
 
         15       Environmental Protection.
 
         16            COMMISSIONER BROGAN:  Move approval.
 
         17            SECRETARY MORTHAM:  Second.
 
         18            COMPTROLLER MILLIGAN:  Second.
 
         19            GOVERNOR CHILES:  Moved and seconded.
 
         20            Without objection, it's approved.
 
         21            DR. BRADLEY:  Item number 3, recommend
 
         22       approval of the transfer of general revenue
 
         23       appropriations for the Department of Children
 
         24       and Families.
 
         25            COMMISSIONER BROGAN:  Move approval.
 
 
 
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                            ADMINISTRATION COMMISSION
                                September 25, 1997
                                                              58
 
          1            ATTORNEY GENERAL BUTTERWORTH:  Second.
 
          2            GOVERNOR CHILES:  Moved and seconded.
 
          3            Without objection, that's approved.
 
          4            DR. BRADLEY:  Item number 4, recommend
 
          5       approval of the transfer of general revenue
 
          6       appropriations for the Department of Education,
 
          7       Division of Public Schools.
 
          8            COMMISSIONER BROGAN:  Move approval.
 
          9            ATTORNEY GENERAL BUTTERWORTH:  Second.
 
         10            GOVERNOR CHILES:  Moved and seconded.
 
         11            Without objection, it's approved.
 
         12            DR. BRADLEY:  Item number 5, recommend
 
         13       approval of Items A and B for the
 
         14       Justice Administrative Commission.
 
         15            COMMISSIONER BROGAN:  Move approval.
 
         16            ATTORNEY GENERAL BUTTERWORTH:  Second.
 
         17            GOVERNOR CHILES:  Moved and --
 
         18            COMMISSIONER BROGAN:  That's A --
 
         19            GOVERNOR CHILES:  -- seconded.
 
         20            COMMISSIONER BROGAN:  -- A and B, Governor.
 
         21            GOVERNOR CHILES:  All right.  Moved and
 
         22       seconded.
 
         23            Without objection.  Items 5A and B are
 
         24       approved.
 
         25            DR. BRADLEY:  Item number 6, recommend
 
 
 
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                            ADMINISTRATION COMMISSION
                                September 25, 1997
                                                              59
 
          1       approval for the transfer of general revenue
 
          2       appropriations for the Department of State.
 
          3            SECRETARY MORTHAM:  Move approval.
 
          4            COMMISSIONER BROGAN:  Second.
 
          5            ATTORNEY GENERAL BUTTERWORTH:  Second.
 
          6            GOVERNOR CHILES:  Moved and seconded.
 
          7            Without objection, that's approved.
 
          8            (The Administration Commission Agenda was
 
          9       concluded.)
 
         10                             *
 
         11
 
         12
 
         13
 
         14
 
         15
 
         16
 
         17
 
         18
 
         19
 
         20
 
         21
 
         22
 
         23
 
         24
 
         25
 
 
 
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                BOARD OF TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND
                                September 25, 1997
                                                              60
 
          1            GOVERNOR CHILES:  Board of Trustees of
 
          2       Internal Improvement Fund.
 
          3            MR. GREEN:  Item 1, approval of minutes.
 
          4            COMMISSIONER BROGAN:  Move the minutes.
 
          5            SECRETARY MORTHAM:  Second.
 
          6            GOVERNOR CHILES:  Moved and seconded.
 
          7            Without objection, it's approved.
 
          8            MR. GREEN:  Item 2, request to issue a
 
          9       50-year easement to Florida Power Corporation.
 
         10            SECRETARY MORTHAM:  Move approval.
 
         11            COMMISSIONER BROGAN:  Second.
 
         12            ATTORNEY GENERAL BUTTERWORTH:  Second.
 
         13            GOVERNOR CHILES:  Moved and seconded.
 
         14            Without objection, it's approved.
 
         15            MR. GREEN:  Item 3, request to modify a use
 
         16       agreement Number U-0281.
 
         17            SECRETARY MORTHAM:  Move approval.
 
         18            COMMISSIONER BROGAN:  Second.
 
         19            GOVERNOR CHILES:  Moved and seconded.
 
         20            Without objection, it's approved.
 
         21            MR. GREEN:  Item 4, an exchange agreement.
 
         22            SECRETARY MORTHAM:  Move approval.
 
         23            COMMISSIONER BROGAN:  Second.
 
         24            GOVERNOR CHILES:  Moved and seconded.
 
         25            Without objection, it's approved.
 
 
 
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                BOARD OF TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND
                                September 25, 1997
                                                              61
 
          1            MR. GREEN:  Item 5, ten option agreements
 
          2       to acquire 1.8 acres in the Shell Island
 
          3       Division of Recreation and Park Addition, and a
 
          4       waiver of survey.
 
          5            SECRETARY MORTHAM:  Move approval.
 
          6            COMPTROLLER MILLIGAN:  Second.
 
          7            GOVERNOR CHILES:  Moved and seconded.
 
          8            Without objection, it's approved.
 
          9            MR. GREEN:  Item 6, an option agreement to
 
         10       acquire 1.4 acres within the Archie Carr.
 
         11            SECRETARY MORTHAM:  Move approval.
 
         12            ATTORNEY GENERAL BUTTERWORTH:  Second.
 
         13            COMPTROLLER MILLIGAN:  Second.
 
         14            COMMISSIONER BROGAN:  Second.
 
         15            GOVERNOR CHILES:  Moved and seconded.
 
         16            Without objection, it's approved.
 
         17            MR. GREEN:  Item 7, an option agreement to
 
         18       acquire 49.8 acres in the Florida Keys ecosystem
 
         19       CARL project.
 
         20            SECRETARY MORTHAM:  Move approval.
 
         21            COMMISSIONER CRAWFORD:  Second.
 
         22            GOVERNOR CHILES:  Moved and seconded.
 
         23            Without objection, that's approved.
 
         24            MR. GREEN:  Item 8, option agreement to
 
         25       acquire .344 acres within Florida's First
 
 
 
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                BOARD OF TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND
                                September 25, 1997
                                                              62
 
          1       Magnitude Springs CARL project.
 
          2            ATTORNEY GENERAL BUTTERWORTH:  Motion.
 
          3            COMPTROLLER MILLIGAN:  And second.
 
          4            GOVERNOR CHILES:  Moved and seconded.
 
          5            Without objection, it's approved.
 
          6            MR. GREEN:  Item 9, purchase agreement
 
          7       to -- to acquire 3.47 acres in South Savannas,
 
          8       an option agreement to acquire 5 acres within
 
          9       South Savannas.
 
         10            COMMISSIONER BROGAN:  Move approval.
 
         11            SECRETARY MORTHAM:  Second.
 
         12            GOVERNOR CHILES:  Moved and seconded.
 
         13            Without objection, that's approved.
 
         14            MR. GREEN:  Substitute Item 10, three
 
         15       purchase agreements to acquire .57 acres by the
 
         16       Board of Trustees for the Board of Regents.
 
         17            COMPTROLLER MILLIGAN:  Let me ask a
 
         18       question, Governor.
 
         19            GOVERNOR CHILES:  Yes, sir.
 
         20            COMPTROLLER MILLIGAN:  It's on parcel
 
         21       number 205, which has a tax assess value of
 
         22       60,000, now assessed this year at 63,000,
 
         23       purchased in 1990 for 65,000, and then appraised
 
         24       at 170,000 for this particular purchase, almost
 
         25       three times the assessed value, almost three
 
 
 
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                BOARD OF TRUSTEES/INTERNAL IMPROVEMENT TRUST FUND
                                September 25, 1997
                                                              63
 
          1       times the purchase value.
 
          2            And I'm interested, Kirby, in the -- why
 
          3       the wide variance between the appraisal and the
 
          4       assessed value and the purchase value.
 
          5            MR. GREEN:  Okay.  We can talk to the
 
          6       appraised value.  I have the appraiser who
 
          7       reviewed the appraisal work for us.
 
          8            Ellie Edmondson is here.  If he will come
 
          9       forward.
 
         10            MR. EDMONDSON:  General Milligan.
 
         11            COMPTROLLER MILLIGAN:  Very simply, I'm
 
         12       curious as to the disparity between the tax
 
         13       assessor's appraisal and the purchase price in
 
         14       1990, and the appraisal today.
 
         15            MR. EDMONDSON:  The only thing I could
 
         16       speak to would be that the methodology that was
 
         17       used by the appraiser was -- it was consistent
 
         18       with what market norms are.  He took three
 
         19       different looks at the property.
 
         20            He -- you know, he assumed what it would,
 
         21       you know, cost to build it today new, as if it
 
         22       were brand new.  And then he looked at the
 
         23       market rent on the property, which, I think, was
 
         24       about 18,000 a year.  And then the third method
 
         25       was he looked at sales of other office
 
 
 
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          1       buildings, which range from about $70 a square
 
          2       foot to about $100 a square foot.  And he had
 
          3       four different sales that he looked at.
 
          4            He concluded that this one was sort of
 
          5       middle-of-the-road of the four that he looked
 
          6       at, and he concluded that the value was $85 a
 
          7       square foot.  I -- I thought that that was,
 
          8       you know, reasonable and well, you know -- well
 
          9       supported conclusion.
 
         10            COMPTROLLER MILLIGAN:  Kind of interesting
 
         11       that the property next door, which was a similar
 
         12       property, in 1995 was purchased by the
 
         13       University for 60,000.
 
         14            I'm just having a hard time stretching
 
         15       from --
 
         16            MR. EDMONDSON:  No, that --
 
         17            COMPTROLLER MILLIGAN:  -- adjacent
 
         18       properties --
 
         19            MR. EDMONDSON:  Would that be the Florida
 
         20       Flambeau structure, or the one on the other
 
         21       side?
 
         22            COMPTROLLER MILLIGAN:  Now you're pinning
 
         23       me down to be more precise than the location.
 
         24       It was the adjacent piece of property with a
 
         25       house on it --
 
 
 
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          1            MR. EDMONDSON:  Uh-hum.
 
          2            COMPTROLLER MILLIGAN:  -- slightly smaller
 
          3       in terms of the size of the --
 
          4            MR. EDMONDSON:  Uh-hum.
 
          5            COMPTROLLER MILLIGAN:  -- land, but
 
          6       purchased for obviously considerably less.
 
          7            MR. EDMONDSON:  I would have to visit that
 
          8       particular site to be able to make an opinion on
 
          9       what was driving the buyer.  There's been a lot
 
         10       of land transactions in there.  And generally
 
         11       speaking, we got a really high level of comfort
 
         12       on those.
 
         13            We see the land and the -- you know,
 
         14       university transition area moving really
 
         15       consistently at $8.50 to $8.75 a square foot.
 
         16       Anything between $8.50 a square foot and $9 a
 
         17       square foot, we're pretty comfortable with.
 
         18            And what we find frequently is there's a
 
         19       lot of houses -- even this house, you know,
 
         20       parcel 205 was built, I believe, in 1925,
 
         21       completely renovated in 1990.  I do not have
 
         22       that cost figure.  I wish that I did.  But --
 
         23            COMPTROLLER MILLIGAN:  Have you looked at
 
         24       that house?
 
         25            MR. EDMONDSON:  Beg your pardon?
 
 
 
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          1            COMPTROLLER MILLIGAN:  Have you looked at
 
          2       that house?
 
          3            MR. EDMONDSON:  Yes, sir.
 
          4            It'd either be -- the structure next
 
          5       door -- and this is conjecture on my part, but I
 
          6       see it happen time and time again in that
 
          7       market -- it's quite possible that the
 
          8       improvements were just deteriorated to the point
 
          9       where they were no longer any contribution to
 
         10       the value of the site --
 
         11            COMPTROLLER MILLIGAN:  A hundred and twenty
 
         12       thousand dollars worth you think, huh?
 
         13            MR. EDMONDSON:  I beg your pardon?
 
         14            COMPTROLLER MILLIGAN:  A hundred and twenty
 
         15       thousand dollars worth.
 
         16            MR. EDMONDSON:  On the site next door you
 
         17       mean, sir?
 
         18            COMPTROLLER MILLIGAN:  Yeah.  That's the
 
         19       difference, 60,000 and 170,000, excuse me --
 
         20            MR. EDMONDSON:  We estimated, right, the
 
         21       improvements, if you busted it out, the
 
         22       difference between land and improvements, the
 
         23       improvements would contribute about 120,000 in
 
         24       this case.
 
         25            COMPTROLLER MILLIGAN:  Well, as long as we
 
 
 
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          1       continue to run the value of this property up,
 
          2       obviously the continuing appraisals will be
 
          3       higher and higher and higher, and we're going to
 
          4       pay more and more and more.
 
          5            I would -- can we handle these, Governor,
 
          6       each of these parcels on an individual basis?
 
          7            GOVERNOR CHILES:  If you so desire,
 
          8       yes, sir.
 
          9            COMPTROLLER MILLIGAN:  Well, I would move
 
         10       parcel 79 for approval; and parcel 33 for
 
         11       approval; and parcel 205 for disapproval.
 
         12            ATTORNEY GENERAL BUTTERWORTH:  Second.
 
         13            MR. GREEN:  Governor --
 
         14            GOVERNOR CHILES:  All right.  There's been
 
         15       a request for a division, and we'll certainly
 
         16       grant that.
 
         17            Yes, sir.
 
         18            MR. GREEN:  We have Vice President
 
         19       Beverly Spencer from FSU here that would like to
 
         20       speak to this issue.
 
         21            GOVERNOR CHILES:  All right.
 
         22            MS. SPENCER:  Thank you, Governor, and
 
         23       members.
 
         24            General, we would like to buy it all very,
 
         25       very inexpensively, but the public process that
 
 
 
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          1       we go through does not always make that
 
          2       possible.  And improvements often happen on the
 
          3       property, plus you have in many cases more
 
          4       astute sellers than you have in some of the
 
          5       options when you're dealing with the -- through
 
          6       our public process.
 
          7            Please keep in mind that we didn't receive
 
          8       our first dollars for State land acquisition
 
          9       until the legislative appropriation in 1990.
 
         10       These were not released until later in the
 
         11       year.
 
         12            And our plan had to come back to this
 
         13       Cabinet, the overall boundary plan, and be
 
         14       approved before we could ever even look at any
 
         15       property.  And that did not occur until,
 
         16       I believe, it was November of 1991, after the
 
         17       property had already sold.  So it couldn't have
 
         18       been in our dream at that point.
 
         19            We hadn't broken dirt -- or ground yet for
 
         20       the University Center, which certainly has
 
         21       impacted things.
 
         22            The dream of closing Pensacola Street and
 
         23       rerouting traffic, which is going to force
 
         24       values up at that time, had not occurred, was
 
         25       not even under consideration.  And would anyone
 
 
 
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          1       have believed at this time that Florida State
 
          2       University would have a women's soccer team.
 
          3            And so part of these issues relate to
 
          4       having to purchase property to relocate softball
 
          5       and soccer to accommodate things that in 1990
 
          6       and '91 we never dreamed of.
 
          7            We try, with the State law, and through
 
          8       DEP, to accom-- get the best deal we can.  We
 
          9       would ask your approval of all three
 
         10       properties.
 
         11            Thank you for your time and consideration.
 
         12            COMPTROLLER MILLIGAN:  If I might,
 
         13       Governor, I just would comment.
 
         14            I appreciate the dilemma that are you in,
 
         15       but I also appreciate that we're spending
 
         16       taxpayers' dollars here, and I have a little
 
         17       trouble with some of these passing my 7-Eleven
 
         18       test.  So --
 
         19            COMMISSIONER CRAWFORD:  Governor, I just --
 
         20       I would support the purchase of all the
 
         21       properties.  I agree with the frustration that
 
         22       General Milligan has.  And I think it relates
 
         23       back to the public nature of our operation
 
         24       here.
 
         25            It's certainly a time-honored tradition of
 
 
 
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          1       real estate investors to try to buy property in
 
          2       the path of progress.  And in this case, they're
 
          3       buying in the path of progress of the State,
 
          4       which makes us even more irritated, I guess,
 
          5       that, you know, we have to pay more money.  But
 
          6       it's certainly reasonable for investors to do
 
          7       that.
 
          8            And as we keep purchasing, it's going to
 
          9       drive prices up.  And it's -- the private sector
 
         10       has to deal with the same problem.
 
         11            When Disney came into Orlando and
 
         12       started -- before they purchased the Disney
 
         13       property, they came in in secrecy, and so they
 
         14       could -- they could buy property and not drive
 
         15       the price up.  We don't have that luxury.
 
         16            And if we did, we would buy things a lot
 
         17       less expensive.  But the public access to
 
         18       information is, I guess, more overriding, and it
 
         19       hinders our abilities in all the things we do up
 
         20       here.  I see it every day.
 
         21            But I don't think that in this case, it
 
         22       warrants not purchasing these properties.
 
         23            GOVERNOR CHILES:  I know that --
 
         24            COMPTROLLER MILLIGAN:  If I may make one
 
         25       more comment --
 
 
 
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          1            GOVERNOR CHILES:  Yes, sir.
 
          2            COMPTROLLER MILLIGAN:  -- Governor.
 
          3            Parcel 205, while an important piece of
 
          4       property for the development plan of the
 
          5       University, is not as pressing as certainly
 
          6       parcel 33; and to a lesser extent, parcel 79.
 
          7            Parcel 205, as I understand it, is intended
 
          8       to support some of the fraternity operations in
 
          9       the future, and so forth, and there are other
 
         10       pieces of property surrounding this particular
 
         11       parcel that if we approve this one at this price
 
         12       will just skyrocket those pieces of property.
 
         13            So that's why I'm honing in on 205.
 
         14            GOVERNOR CHILES:  That's the question
 
         15       I think I was going to ask.  Two oh five is an
 
         16       interior parcel.  It seems like to me the corner
 
         17       parcel, I understand, is -- does not have a
 
         18       willing seller right now.
 
         19            What are you really going to be able to use
 
         20       205 for now?  What are we going to really
 
         21       stop --
 
         22            MS. SPENCER:  Right now, the use --
 
         23            Yes.  We do have a lot of unwilling
 
         24       sellers, and we'll be asking you to deal with
 
         25       some of that in the future.
 
 
 
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          1            GOVERNOR CHILES:  Uh-hum.
 
          2            MS. SPENCER:  Right now, that would
 
          3       probably be used immediately for parking and
 
          4       also for smaller institutes and centers.
 
          5            Because of the space situation that the
 
          6       Chancellor highlighted, we move institutes,
 
          7       centers, and groups of students into all kind of
 
          8       little houses, little trailers -- we, too, have
 
          9       trailers on the campus -- so that it would be
 
         10       used for academic purposes, even though the
 
         11       long-range plan does go into development for
 
         12       sorority and fraternity housing in the master
 
         13       plan.
 
         14            SECRETARY MORTHAM:  Governor --
 
         15            GOVERNOR CHILES:  Yes, ma'am.
 
         16            SECRETARY MORTHAM:  -- at this time though,
 
         17       Beverly, you're saying that this particular
 
         18       parcel, even though it's not large, would,
 
         19       in fact, be used for parking, which is at a
 
         20       premium at best over there.
 
         21            MS. SPENCER:  Yes.  If the condition -- and
 
         22       the -- the facility has been upgraded, that very
 
         23       much so that is on that piece of property.
 
         24            If we can move an existing crowded unit
 
         25       into that facility until we clear the whole
 
 
 
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          1       area, we would use it for instructional
 
          2       purposes.  They have not determined that these
 
          3       people in room 102 of the Williams Building.
 
          4       But we are remodeling buildings, moving whole
 
          5       units out of buildings into trailers, anywhere
 
          6       else that we can find to put them.
 
          7            So it would not go unused until it goes
 
          8       into parking, until it goes into additional
 
          9       housing.
 
         10            GOVERNOR CHILES:  All right.  I think we've
 
         11       had a discussion on it.  Let's take up the items
 
         12       one at a time.
 
         13            The first parcel is --
 
         14            COMPTROLLER MILLIGAN:  Number 79.
 
         15            GOVERNOR CHILES:  -- 79.
 
         16            So many as favor the purchase of parcel 79,
 
         17       signify by saying aye.
 
         18            THE CABINET:  Aye.
 
         19            GOVERNOR CHILES:  Opposed, no.
 
         20            Parcel 79 is approved.
 
         21            COMPTROLLER MILLIGAN:  And then parcel 33.
 
         22            GOVERNOR CHILES:  Thirteen?
 
         23            COMPTROLLER MILLIGAN:  Thirty-three, sir.
 
         24            GOVERNOR CHILES:  Thirty-three.
 
         25            All right.  So many as approve the purchase
 
 
 
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          1       of parcel 33, signify by saying aye.
 
          2            THE CABINET:  Aye.
 
          3            GOVERNOR CHILES:  Opposed, no.
 
          4            Parcel 33 is approved.
 
          5            COMPTROLLER MILLIGAN:  And parcel 205.
 
          6            GOVERNOR CHILES:  And parcel 205.
 
          7            So many as favor the purchase of
 
          8       parcel 205, say aye.
 
          9            THE CABINET:  Aye.
 
         10            GOVERNOR CHILES:  Opposed, no.
 
         11            COMPTROLLER MILLIGAN:  No.
 
         12            GOVERNOR CHILES:  No.
 
         13            ATTORNEY GENERAL BUTTERWORTH:  No.
 
         14            GOVERNOR CHILES:  I think we're going to
 
         15       wait on 205.
 
         16            Give the appraiser time to get his rows in
 
         17       order.
 
         18            MR. GREEN:  Substitute Item 11,
 
         19       modification of five-year sovereignty submerged
 
         20       land lease.
 
         21            ATTORNEY GENERAL BUTTERWORTH:  I'll move
 
         22       the item, Governor, but I have an amendment at
 
         23       the appropriate time.
 
         24            COMPTROLLER MILLIGAN:  I'll second it.
 
         25            ATTORNEY GENERAL BUTTERWORTH:  Okay.
 
 
 
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          1            Governor, the amendment I have is agreed to
 
          2       by the -- the applicant and also by DEP.
 
          3            And it would read:  This lease does not
 
          4       authorize the mooring of gambling vessels.  Any
 
          5       proposal to allow the mooring of gambling
 
          6       vessels at this facility require prior approval
 
          7       by the Board of Trustees of the Internal
 
          8       Improvement Trust Fund.
 
          9            And I move the amendment.
 
         10            GOVERNOR CHILES:  It's -- the item has been
 
         11       moved and seconded --
 
         12            As amended?
 
         13            COMPTROLLER MILLIGAN:  Yes.
 
         14            GOVERNOR CHILES:  -- as amended.
 
         15            So we'll vote on the item as amended.
 
         16            So many as favor signify by saying aye.
 
         17            THE CABINET:  Aye.
 
         18            GOVERNOR CHILES:  Opposed, no.
 
         19            Item is adopted.
 
         20            ATTORNEY GENERAL BUTTERWORTH:  Thank you.
 
         21            GOVERNOR CHILES:  Yes, sir.
 
         22            (The Board of Trustees of the Internal
 
         23       Improvement Trust Fund Agenda was concluded.)
 
         24                             *
 
         25
 
 
 
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          1            MR. GREEN:  St. Johns River Water
 
          2       Management District.
 
          3            Item 1 is the minutes of the May 28th, '97,
 
          4       meeting.
 
          5            COMPTROLLER MILLIGAN:  Move approval.
 
          6            ATTORNEY GENERAL BUTTERWORTH:  Second.
 
          7            GOVERNOR CHILES:  They've been moved --
 
          8            COMMISSIONER BROGAN:  Second.
 
          9            GOVERNOR CHILES:  -- seconded.
 
         10            Without objection, the minutes are
 
         11       approved.
 
         12            MR. GREEN:  Items 2, 3, and 4, recommend
 
         13       deferral until the October 21st meeting.
 
         14            ATTORNEY GENERAL BUTTERWORTH:  Motion.
 
         15            SECRETARY MORTHAM:  Move deferral.
 
         16            ATTORNEY GENERAL BUTTERWORTH:  Second.
 
         17            GOVERNOR CHILES:  Moved and seconded on a
 
         18       deferral of Items 2, 3, and 4.
 
         19            And without objection, that's approved.
 
         20            MR. GREEN:  Thank you.
 
         21            GOVERNOR CHILES:  Thank you, sir.
 
         22            (The St. Johns River Water Management
 
         23       District Agenda was concluded.)
 
         24                             *
 
         25
 
 
 
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          1            (The Cabinet meeting was concluded at
 
          2       11:27 a.m.)
 
          3
 
          4
 
          5
 
          6
 
          7
 
          8
 
          9
 
         10
 
         11
 
         12
 
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         14
 
         15
 
         16
 
         17
 
         18
 
         19
 
         20
 
         21
 
         22
 
         23
 
         24
 
         25
 
 
 
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          1                 CERTIFICATE OF REPORTER
 
          2
 
          3
 
          4   STATE OF FLORIDA:
 
          5   COUNTY OF LEON:
 
          6            I, LAURIE L. GILBERT, do hereby certify that
 
          7   the foregoing proceedings were taken before me at the
 
          8   time and place therein designated; that my shorthand
 
          9   notes were thereafter translated; and the foregoing
 
         10   pages numbered 1 through 77 are a true and correct
 
         11   record of the aforesaid proceedings.
 
         12            I FURTHER CERTIFY that I am not a relative,
 
         13   employee, attorney or counsel of any of the parties,
 
         14   nor relative or employee of such attorney or counsel,
 
         15   or financially interested in the foregoing action.
 
         16            DATED THIS 5TH day of OCTOBER, 1997.
 
         17
 
         18
 
         19                      LAURIE L. GILBERT, RPR, CCR, CRR
                                 100 Salem Court
         20                      Tallahassee, Florida 32301
                                 850/878-2221
         21
 
         22
 
         23
 
         24
 
         25
 
 
 
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