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                               T H E   C A B I N E T 
                          S T A T E   O F   F L O R I D A
                           STATE BOARD OF ADMINISTRATION
                               DEPARTMENT OF REVENUE
                              STATE BOARD OF EDUCATION
                              BOARD OF TRUSTEES OF THE
                           INTERNAL IMPROVEMENT TRUST FUND
                        The above agencies came to be heard before 
               THE FLORIDA CABINET, Honorable Governor Bush 
               presiding, in the City Hall, 900 East Strawbridge 
               Avenue, Council Chambers, Second Floor, Melbourne, 
               Florida, on Tuesday, December 12, 2000, commencing at 
               approximately 9:06 a.m. 
                                    Reported by:
                                 LAURIE L. GILBERT
                          Registered Professional Reporter
                              Certified Court Reporter
                            Certified Realtime Reporter
                             Registered Merit Reporter
                              Notary Public in and for
                           the State of Florida at Large
                         ACCURATE STENOTYPE REPORTERS, INC.
                                  100 SALEM COURT
                             TALLAHASSEE, FLORIDA 32301



                        Representing the Florida Cabinet: 
                        JEB BUSH
                        BOB CRAWFORD
                        Commissioner of Agriculture
                        BOB MILLIGAN
                        KATHERINE HARRIS
                        Secretary of State
                        BOB BUTTERWORTH
                        Attorney General
                        BILL NELSON
                        TOM GALLAGHER
                        Commissioner of Education
                                      *   *   *












                        ACCURATE STENOTYPE REPORTERS, INC.

                                 December 12, 2000
                                    I N D E X
               ITEM                  ACTION                PAGE
               (Presented by Barbara Jarriel,
                   Chief Investment Officer)
                1             Approved                      18
                2             Approved                      19
                3             For Information Only          19
               (Presented by James A. Zingale, Ph.D.,
                   Executive Director)
                1             Approved                      30
                2             Approved                      42
                3             Approved                      42
               (Presented by Wayne V. Pierson,
                   Deputy Commissioner)
                1             Approved                      45
                2             Approved                      91
                3             Approved                      92
                4             Approved                      96
                5             Approved                      97
                6 through 18  Approved                      97
               19             Approved                      98
               20             Approved                      98
               21             Approved                      99








                        ACCURATE STENOTYPE REPORTERS, INC.

                                 December 12, 2000
                                     I N D E X
               ITEM                  ACTION                PAGE
               TRUST FUND:
               (Presented by David B. Struhs,
                1             Approved                     104
               Substitute 2   Approved                     109
                3             Approved                     110
               Substitute 4   Deferred                     113
                5             Approved                     115
               Substitute 6   Approved                     117
                        CERTIFICATE OF REPORTER            123 
                                      *   *   *














                        ACCURATE STENOTYPE REPORTERS, INC.

                           STATE BOARD OF ADMINISTRATION           5
                                 December 12, 2000
         1                    P R O C E E D I N G S

         2              (The agenda items commenced at 9:23 a.m.)

         3              GOVERNOR BUSH:  Now we're going to start 

         4          our regular agenda. 

         5              And before we do that, I think I might ask 

         6          General Butterworth -- I haven't asked him to 

         7          do this, so -- but you're -- you're a pretty 

         8          good extemporaneous speaker as well -- to 

         9          describe the Cabinet, because we do have 

        10          students here. 

        11              And this is a unique -- a very unique, I 

        12          think one-of-a-kind institution in our -- in 

        13          our -- of all the 50 states. 

        14              And perhaps you could describe a little bit 

        15          about what -- why we're gathered like this, and 

        16          then -- and maybe talk about what two years 

        17          from now the -- where the Cabinet's going. 

        18              And then -- and then we'll -- we'll start 

        19          our agenda.  And maybe it'll give a little 

        20          context to -- to why we have this meeting every 

        21          other week. 

        22              ATTORNEY GENERAL BUTTERWORTH:  

        23          Five minutes, Governor? 

        24              GOVERNOR BUSH:  However long it takes.

        25              ATTORNEY GENERAL BUTTERWORTH:  Okay.  I 

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                           STATE BOARD OF ADMINISTRATION           6
                                 December 12, 2000
         1          think Erica could probably do it better than I 

         2          can.  But I'll try my best.

         3              The -- Florida, ever since it became a 

         4          state, had a shared Executive Branch.  In the 

         5          beginning, with the seven of us that are 

         6          here -- of course, there were other people back 

         7          in 1882, you know. 

         8              But the --

         9              COMMISSIONER GALLAGHER:  Some.

        10              ATTORNEY GENERAL BUTTERWORTH:  Some.

        11              I feel like I've been here since the 

        12          beginning.

        13              But the -- and literally the -- all seven 

        14          of us would have shared the -- the identical 

        15          powers. 

        16              So what Florida had is that Florida had a 

        17          state that -- that very much did have, 

        18          unfortunately, a weak Governor form of 

        19          government.  And everyone shared. 

        20              And for many years, the Governor was term 

        21          limited in office, and could only serve a 

        22          couple of terms, whereas someone on the 

        23          Cabinet, such as Secretary Mayo, or -- or 

        24          Commissioner Doyle Connor, would serve 30, 40, 

        25          50 years, because they had an airplane -- if 

                        ACCURATE STENOTYPE REPORTERS, INC.

                           STATE BOARD OF ADMINISTRATION           7
                                 December 12, 2000
         1          they made airplanes -- they -- we all had 

         2          staffs, and actually were treated like 

         3          governors.  In essence, they did share all the 

         4          power.

         5              As time went on, they started putting more 

         6          and more power into the Governor, as it should 

         7          be.  And I think back in 1968 was one of the 

         8          major changes that was made.  And so far, it's 

         9          been -- from the standpoint, used to have, 

        10          like, 117 different organizations in -- in 

        11          Florida government.  That was then carved down 

        12          to 25, and the Governor and Cabinet preside 

        13          over about seven of those.

        14              In 1998, we had the Constitution Revision 

        15          Commission, which is -- so -- those of you that 

        16          want to come to Tallahassee or to Miami when we 

        17          have our next meeting, it's going to look a 

        18          little bit different, because the voters 

        19          decided that they didn't -- that they wanted 

        20          to -- to change the state of Florida a little 

        21          bit. 

        22              Both Treasurer Nelson and -- and 

        23          Comptroller Milligan came before the 

        24          Constitution Revision Commission, which meets 

        25          once every 20 years, to look at our 

                        ACCURATE STENOTYPE REPORTERS, INC.

                           STATE BOARD OF ADMINISTRATION           8
                                 December 12, 2000
         1          Constitution, and get citizen input to see how 

         2          it should be changed and modernized. 

         3              Florida's one of the few governments that 

         4          do that.  And both of these Commissioners came 

         5          before the -- the Revision Commission to say 

         6          that in the best interest of the State of 

         7          Florida, we should be merging our particular 

         8          jobs.  And that would then take the Cabinet 

         9          down to six.

        10              The Constitution Revision Commission then 

        11          decided they wanted to reduce it even further.  

        12          There have -- there have been citizen 

        13          initiatives over the years to abolish it 

        14          completely.  Many people believe that more than 

        15          one person should decide certain issues, such 

        16          as law enforcement; such as clemency; and such 

        17          as on the issue of bonds, which would be 

        18          pledging the full faith and credit of the State 

        19          of Florida.  It really should be more than one 

        20          person. 

        21              And also when it comes to the State lands 

        22          that the -- that the State owns as the Board of 

        23          Trustees, we should be able to have more than 

        24          just one person handle that.

        25              The Constitution Revision Commission 

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                           STATE BOARD OF ADMINISTRATION           9
                                 December 12, 2000
         1          decided then to go with four persons.  It'd be 

         2          the Attorney General, the Comptroller, the 

         3          Agriculture Commissioner, and the Governor. 

         4              And I believe that was a good combination.  

         5          Many people originally said it should be three 

         6          people, without the Agricultural Commissioner 

         7          being on there.

         8              The -- that meant that the -- that the 

         9          three people would, in essence, be able to 

        10          determine what we have now, which would be the 

        11          Florida Department of Law Enforcement reports 

        12          to us, certain parts of the Department of 

        13          Environmental Protection when it comes to State 

        14          lands reports to us, as well as the Florida 

        15          Department of Law Enforcement, and Department 

        16          of Revenue.

        17              The -- when it came to State lands, many 

        18          people who owned a lot of -- of lands in the 

        19          State of Florida decided they -- that they 

        20          wanted an Agricultural Commissioner to also sit 

        21          on, because their interests were -- were 

        22          basically -- should at least be looked into, 

        23          and they were correct. 

        24              And that's the way that was passed.  And -- 

        25          and what was good about it, I think, from the 

                        ACCURATE STENOTYPE REPORTERS, INC.

                           STATE BOARD OF ADMINISTRATION          10
                                 December 12, 2000
         1          standpoint of the State of Florida having more 

         2          of its power in -- in the Chief Executive 

         3          Office of the Governor, if there would have 

         4          been three of us up here, then -- then the two 

         5          of us could have outvoted the Governor. 

         6              With four people, if there's a tie, 

         7          2-2 tie, the tie goes with the Governor. 

         8              So for the first time in the history of 

         9          our -- our state, we're going to be more in 

        10          line with most other states about where the -- 

        11          where the Chief Executive of the state will be 

        12          able to talk at -- and be a stronger 

        13          Chief Executive, as opposed to sharing a lot of 

        14          the power.

        15              But still when it comes to those areas of 

        16          full faith and credit, the bonding, when it 

        17          comes to State lands, when it comes to the 

        18          chief law enforcement of the state, that 

        19          particular authority will be shared. 

        20              And when it comes to revenue in the state, 

        21          that'll be shared. 

        22              We receive very, very few powers from the 

        23          Constitution as a Board.  And the only two 

        24          would be the State Board of Education.  And, 

        25          of course, the Commissioner of Education will 

                        ACCURATE STENOTYPE REPORTERS, INC.

                           STATE BOARD OF ADMINISTRATION          11
                                 December 12, 2000
         1          also be gone. 

         2              And that will be conducted by a -- the 

         3          Governor will appoint a Board I believe of 

         4          12 people?  And then --

         5              GOVERNOR BUSH:  I think it's seven, 

         6          I believe.

         7              ATTORNEY GENERAL BUTTERWORTH:  Seven?

         8              And that -- and that Board will then 

         9          determine who -- who the Commissioner of 

        10          Education should be.  So that role will be 

        11          taken away from us constitutionally.  But 

        12          originally, that was one of the functions we 

        13          had as -- as a -- a Cabinet.

        14              Another one is the Department of -- of 

        15          Veterans' Affairs, which reports to us.  And 

        16          constitutionally, it reports to all seven of 

        17          us.  Subsequently, it'll only report to -- to 

        18          four of us.

        19              But the whole thing, as -- as we have been 

        20          changing over time in order to meet the needs 

        21          of the state, as I said before, Florida is very 

        22          unique in that once every 20 years, we will -- 

        23          we will submit to the people constitutional 

        24          reform. 

        25              And I'm sure 18 years from now, there will 

                        ACCURATE STENOTYPE REPORTERS, INC.

                           STATE BOARD OF ADMINISTRATION          12
                                 December 12, 2000
         1          be additional changes being made.  Most of our 

         2          powers and duties come from what the 

         3          Legislature gives us.  They literally can take 

         4          the Department of Law Enforcement away from us 

         5          and give it to somebody else; they can -- they 

         6          can take away the Department of Highway Safety 

         7          and Motor Vehicles, which includes the Florida 

         8          Highway Patrol, and put that somewhere else. 

         9              And many people have advocated that that 

        10          may be -- is the way it should be done.  And I 

        11          would see that as time goes on, the Legislature 

        12          also is looking at the possibility of -- of 

        13          maybe taking Insurance out of an elected 

        14          official's role; or taking Banking out of an 

        15          elect official's role; or adding more power and 

        16          authority to the Secretary of State, which may 

        17          end up being driver's licenses and things like 

        18          that, like a lot of other states do. 

        19              But the Secretary of State will no longer 

        20          be on the Cabinet.  And I guess the Secretary 

        21          of State will be an elected office --

        22              SECRETARY HARRIS:  Appointed.

        23              ATTORNEY GENERAL BUTTERWORTH:  -- will be 

        24          an appointed office.  So -- so from that 

        25          standpoint, I -- I think we're going to be 

                        ACCURATE STENOTYPE REPORTERS, INC.

                           STATE BOARD OF ADMINISTRATION          13
                                 December 12, 2000
         1          seeing more duties going to that particular 

         2          appointed person, and -- and we might see more 

         3          of the international stuff going to the -- to 

         4          the Secretary of State, which -- which maybe I 

         5          think is a very important thing to do.

         6              But -- but in a thumbnail sketch, Governor, 

         7          that's probably -- if it wasn't too confusing, 

         8          that's -- that's how I -- 

         9              GOVERNOR BUSH:  Thank you, General. 

        10              Anybody else have any comments that they 

        11          want to add or delete or correct from the 

        12          General?

        13              Good. 

        14              We don't like to contradict the 

        15          Attorney General of the state.  That's a bad 

        16          thing.

        17              The -- the beauty of this is that we do 

        18          combine the -- the strength of local 

        19          government. 

        20              Mayor, when you come here and your Council 

        21          comes here, people can come right up and let 

        22          you have it, don't they? 

        23              And they do it, I imagine.  

        24          Brevard County's got a rich tradition of the 

        25          citizenry expressing their opinions.  And 

                        ACCURATE STENOTYPE REPORTERS, INC.

                           STATE BOARD OF ADMINISTRATION          14
                                 December 12, 2000
         1          that's wonderful.

         2              And most State governments are removed from 

         3          the people, and they don't have the opportunity 

         4          to -- to have direct input from -- from them.  

         5          But we have Cabinet meetings every other week, 

         6          and people come up, and they let us have it if 

         7          they think we're doing the wrong thing, or they 

         8          express their opinions.  And -- and this form 

         9          of government, I think, is very healthy in that 

        10          regard. 

        11              And while it's being adjusted to reflect 

        12          a -- a more modern state, since this was 

        13          created in a -- in a different -- a different 

        14          time, we're still keeping the public meetings 

        15          and the public notices, and the -- as 

        16          General Milligan would tell you, the government 

        17          in the Sunshine, which I think adds a 

        18          tremendous vitality to our State government.

        19              So, once again, we're delighted to be here.

        20              Now we're going to start our meeting.

        21              And, Tom Herndon, are you here? 

        22              MS. JARRIEL:  I'm not Tom Herndon, but 

        23          I'm --

        24              GOVERNOR BUSH:  No, you're not.  That's 

        25          clear. 

                        ACCURATE STENOTYPE REPORTERS, INC.

                           STATE BOARD OF ADMINISTRATION          15
                                 December 12, 2000
         1              State Board of Administration.

         2              Where is Tom? 

         3              MS. JARRIEL:  He's in New York.  He had 

         4          some business meetings this week, so I was the 

         5          appointee for today. 

         6              So with your permission, Governor, I'd like 

         7          to do a brief overview of our --

         8              GOVERNOR BUSH:  Please.

         9              MS. JARRIEL:  -- organization and its 

        10          activities, since the audience here may not be 

        11          as familiar with the State Board of 

        12          Administration, as the audience in Tallahassee.

        13              The State Board of Administration was 

        14          created as a constitutional body in 1941, and 

        15          approved by the electorate in 1942. 

        16              Our original --

        17              (Secretary Harris exited the room.)

        18              MS. JARRIEL:  -- responsibility included 

        19          the administration of a gas tax, and the 

        20          statute delineated powers conferred by law. 

        21              Subsequent to that time, almost all of the 

        22          duties that have been assigned to us have been 

        23          predominantly investment and debt related --

        24              GOVERNOR BUSH:  Excuse me.

        25              Can you -- can you all hear back there? 

                        ACCURATE STENOTYPE REPORTERS, INC.

                           STATE BOARD OF ADMINISTRATION          16
                                 December 12, 2000
         1              AUDIENCE:  No.

         2              GOVERNOR BUSH:  I didn't think so.

         3              COMMISSIONER GALLAGHER:  Tell her to get 

         4          real close.

         5              MS. JARRIEL:  I've just got to get closer. 

         6              Okay. 

         7              GOVERNOR BUSH:  There you go.

         8              MS. JARRIEL:  How's that?

         9              GOVERNOR BUSH:  I think that's -- is that 

        10          better?

        11              MS. JARRIEL:  Yes.

        12              I'll start back a little bit then. 

        13              After we were originally created as a 

        14          constitutional body in 1942, our original 

        15          responsibility was the management and 

        16          administration of the gas tax. 

        17              Subsequent to that time, most of our 

        18          responsibilities have predominantly consisted 

        19          of investment and debt management activities. 

        20              We currently have 127 billion dollars in 

        21          assets under management.  Our two largest funds 

        22          are the consolidated Florida Retirement System 

        23          Pension Fund, the FRS; and the Local Government 

        24          Investment Pool. 

        25              I'd like to mention that the FRS is the 

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                           STATE BOARD OF ADMINISTRATION          17
                                 December 12, 2000
         1          fourth largest pension plan in the country, and 

         2          the sixth largest in the world.

         3              Our Local Government Investment Pool serves 

         4          as a liquid, high quality vehicle for counties 

         5          and municipalities, and is currently about 

         6          11 billion dollars.

         7              In fact, we have monies for the City of 

         8          Melbourne Airport fund, the City of Melbourne 

         9          Claims Fund, we have funds under management for 

        10          Brevard County School Board, as well as the 

        11          community college.

        12              Our other large mandates include the 

        13          management of debt service funds, Florida 

        14          Hurricane Catastrophe Fund, the Lawton Chiles 

        15          Endowment Fund, and funds that we administer on 

        16          behalf of the State Lottery.

        17              I wanted to mention that our operations are 

        18          funded exclusively through the assessment of 

        19          management fees.  In other words, we receive no 

        20          funding through the legislative appropriation 

        21          process. 

        22              And our fees currently on average are 

        23          1.75 basis points.  And a basis point, for 

        24          those who do not know, is 100th of 1 percent. 

        25              So we believe that we're extremely 

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                           STATE BOARD OF ADMINISTRATION          18
                                 December 12, 2000
         1          cost-effective in the management of our funds. 

         2              The most recent responsibility assigned to 

         3          us is the implementation of the Optional 

         4          Retirement Program. 

         5              And with your permission, I'll just wait 

         6          and do a brief overview of that when we get to 

         7          the --

         8              GOVERNOR BUSH:  Okay. 

         9              MS. JARRIEL:  -- the status report.

        10              GOVERNOR BUSH:  Great.

        11              MS. JARRIEL:  But beginning with our 

        12          agenda, the first item of business is approval 

        13          of the minutes of the meeting that was held on 

        14          November 29th.

        15              GOVERNOR BUSH:  By the way, the Treasurer 

        16          and the Comptroller and the Governor comprise 

        17          the State Board of Administration, not the 

        18          entire Cabinet. 

        19              Just as a little aside.

        20              COMPTROLLER MILLIGAN:  And I'll -- and I'll 

        21          move the minutes.

        22              TREASURER NELSON:  And I'll second.

        23              GOVERNOR BUSH:  Moved and seconded.

        24              Without objection, it's approved.

        25              Item 2.

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                           STATE BOARD OF ADMINISTRATION          19
                                 December 12, 2000
         1              MS. JARRIEL:  The second item is approval 

         2          of fiscal determination of amounts not 

         3          exceeding nine million five hundred and 

         4          forty thousand, tax exempt; and four million 

         5          nine thousand, taxable --

         6              (Commissioner Crawford exited the room.) 

         7              MS. JARRIEL:  -- Florida Housing Finance 

         8          Corporation Housing Revenue Bonds, series to be 

         9          designated 2000 series, Wyndham Place 

        10          Apartments.

        11              COMPTROLLER MILLIGAN:  Move Item 2.

        12              TREASURER NELSON:  Second it.

        13              GOVERNOR BUSH:  Moved and seconded.

        14              Without objection, it's approved.

        15              MS. JARRIEL:  The third item we have on the 

        16          agenda is our fifth status report on the 

        17          Optional Retirement Program. 

        18              And at this time, again, for the benefit of 

        19          the audience, I'd like to just do a brief 

        20          overview of that program.

        21              The Legislature passed legislation this 

        22          past year which offers employees the 

        23          opportunity to participate in a defined 

        24          contribution program --

        25              GOVERNOR BUSH:  Why don't you describe 

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                           STATE BOARD OF ADMINISTRATION          20
                                 December 12, 2000
         1          defined contribution, and compare it to defined 

         2          benefit.

         3              MS. JARRIEL:  Right.  Defined --

         4              GOVERNOR BUSH:  In English.

         5              MS. JARRIEL:  Defined benefit is basically 

         6          where you have a benefit for life based on your 

         7          tenure and salary level.

         8              Under a defined contribution plan, the 

         9          advantages that employees who feel they have 

        10          expertise in investments, and who want to 

        11          actually make their own choices as to how they 

        12          invest their assets to accumulate retirement 

        13          benefits, can do so.

        14              The disadvantage, of course, is that the 

        15          individual participant bears the investment 

        16          risk. 

        17              With the DB plan, the Legislature 

        18          guarantees the benefit to employees.

        19              So really it offers flexibility to 

        20          employees.

        21              It's called the Public Employees Optional 

        22          Retirement Program, and for lack of a better 

        23          shortened name, we're calling it PEORP.  So if 

        24          you hear me use that term, that's what it 

        25          means.

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                           STATE BOARD OF ADMINISTRATION          21
                                 December 12, 2000
         1              GOVERNOR BUSH:  Mayor, do you have acronyms 

         2          down here or --

         3              MR. BUCKLEY:  Yes.

         4              GOVERNOR BUSH:  Just checking.

         5              If you can find the cure for them, will you 

         6          let us know up in Tallahassee?

         7              Thank you.

         8              MS. JARRIEL:  This --

         9              GOVERNOR BUSH:  PEORP.

        10              MS. JARRIEL:  PEORP.

        11              GOVERNOR BUSH:  It's a very meaningful 

        12          term, isn't it? 

        13              MS. JARRIEL:  It's very meaningful.

        14              This will be the largest DC plan transition 

        15          in history.  It involves over 800 employers, 

        16          many of whom are in the room today; and over 

        17          600,000 active members. 

        18              So we have quite a challenge in terms of 

        19          the educational component on the program. 

        20              The implementation has been assigned to the 

        21          SBA.  And, of course, we will have to implement 

        22          the program in conjunction with the State 

        23          Comptroller's Office, Division of Retirement, 

        24          and the local employers.

        25              The first participant elections will occur 

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                           STATE BOARD OF ADMINISTRATION          22
                                 December 12, 2000
         1          in June of 2002 for State employees; followed 

         2          by School Board employees in September of '02;  

         3          and then lastly, local government employees.

         4              There will be an aggressive three-- 

         5          three-month period of education prior to that 

         6          time.

         7              And new employees will automatically be 

         8          enrolled in the DB plan, and given 180-day 

         9          window to make a choice if they would like to 

        10          elect DC.

        11              Our goals for this program are to offer 

        12          sufficient choice for our participants without 

        13          creating unnecessary complexity to the program.

        14              We want to be cost-effective, while 

        15          offering best in class options.  In fact, the 

        16          statute's very specific with regard to low 

        17          costs. 

        18              And, lastly, we want to employ best 

        19          practices in the hiring of all of our service 

        20          providers, the third party administrator, the 

        21          education providers, as well as the investment 

        22          service providers.

        23              In addition to the SBA staff implementation 

        24          and oversight by the Board, we have two 

        25          advisory bodies, the Investment Advisory 

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                           STATE BOARD OF ADMINISTRATION          23
                                 December 12, 2000
         1          Council, which is our existing advisory council 

         2          for the DB plan; as well as the PEORP 

         3          Advisory Council, which was created by the 

         4          Legislature in conjunction with the legislation 

         5          itself.

         6              We're making a lot of progress, as you'll 

         7          see in our status report, and we still have a 

         8          ways to go.

         9              So I'll begin with the -- with the status 

        10          report.  This is status report number 5. 

        11              We had our third meeting of the Investment 

        12          Services Implementation Group on November 9th 

        13          to review the selection and evaluation criteria 

        14          for the unbundled providers. 

        15              Second item, we received 21 responses on 

        16          November 13th to the education advisor vendors.  

        17          And for your information, we've attached a list 

        18          of those respondents.

        19              On November 14th, we conducted a workshop 

        20          on the asset transition rule.  And I have a 

        21          further update on that.

        22              Interested parties had until November 30th 

        23          to provide their comments, and we've 

        24          incorporated a number of those into the 

        25          workshop draft. 

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                           STATE BOARD OF ADMINISTRATION          24
                                 December 12, 2000
         1              The present schedule is for the rule draft 

         2          to be presented to the advisory groups in 

         3          January, and then ask the Trustees to -- for 

         4          permission to file for notice at our 

         5          January 23rd meeting.

         6              Item Number 4, we selected a media 

         7          consultant, James E. Arnold, Incorporated, on 

         8          November 15th, and he will assist in the 

         9          implementation of the education program.

        10              On November 27th, we had our fourth meeting 

        11          of the Education Implementation Group. 

        12              Item Number 6, we conducted a rule hearing 

        13          on the Investment Policy Statement rule on 

        14          November 28th.  And, likewise, I have an update 

        15          here. 

        16              Comments were received at that hearing, and 

        17          at that time, two vendors had indicated that 

        18          they intended to challenge the rule.  We did 

        19          have challenges on Friday, December 8th, and, 

        20          in fact, there were three challenges, as 

        21          opposed to two. 

        22              And, unfortunately, no other action to 

        23          adopt this rule will be possible until after 

        24          the litigation proceedings have been completed, 

        25          and we have a final order from the 

                        ACCURATE STENOTYPE REPORTERS, INC.

                           STATE BOARD OF ADMINISTRATION          25
                                 December 12, 2000
         1          Administrative Law Judge.

         2              Item Number 7, we had a joint meeting of 

         3          the IAC and the PEORP Advisory Council on 

         4          November 29th to review the selection and 

         5          evaluation criteria for the unbundled 

         6          investment product providers, the evaluation 

         7          criteria for the education advisors, and the 

         8          evaluation criteria for the asset transition 

         9          broker.

        10              Item Number 8, we withdrew the original 

        11          TPA RFI on November 27th, and the --

        12              GOVERNOR BUSH:  TPA RFI.

        13              MS. JARRIEL:  Oh, I'm sorry.

        14              GOVERNOR BUSH:  Third Party 

        15          Administrator --

        16              MS. JARRIEL:  Third Party Administrator, 

        17          Request for Information.

        18              GOVERNOR BUSH:  Thank you.

        19              MS. JARRIEL:  -- on November 27th, and 

        20          reissued a new one on November 28th. 

        21              Certain activities with regard to the TPA 

        22          would have been halted until a resolution had 

        23          been reached, or the parties had withdrawn 

        24          petitions in this regard.

        25              A further update on that:  There was an 

                        ACCURATE STENOTYPE REPORTERS, INC.

                           STATE BOARD OF ADMINISTRATION          26
                                 December 12, 2000
         1          original protest filed on December 1st, but 

         2          staff has engaged in negotiations with the 

         3          representatives of -- of that vendor, and 

         4          reached an accommodation with no substantive 

         5          change to the current RFI.

         6              Consequently, we'll continue along that 

         7          path, and responses will be due back from the 

         8          bidders on December 18th. 

         9              It's now anticipated that this selection 

        10          process will be concluded by staff, and we'll 

        11          have a recommendation to the Trustees in late 

        12          January or early February.

        13              GOVERNOR BUSH:  So we're still on tim-- on 

        14          track? 

        15              MS. JARRIEL:  We're still on track with 

        16          that for now. 

        17              I understand from our General Counsel's 

        18          Office that we can proceed since there has been 

        19          no challenge. 

        20              As you know, Governor, our goal was to have 

        21          the challenge relate to only one item, and that 

        22          was the Investment Policy Statement.

        23              So as you can see from our report, we've 

        24          accomplished a lot to date.  We do have one 

        25          upcoming meeting, a joint meeting again, of the 

                        ACCURATE STENOTYPE REPORTERS, INC.

                           STATE BOARD OF ADMINISTRATION          27
                                 December 12, 2000
         1          IAC and the PEORP Advisory Council --

         2              (Secretary Harris entered the room.)

         3              MS. JARRIEL:  -- on December 21st to 

         4          solicit comments on the selection and 

         5          evaluation criteria, the education -- and the 

         6          education advisor criteria, and the asset 

         7          transition broker criteria.

         8              And the last item I have:  We still have 

         9          one member of that Advisory Council yet to be 

        10          appointed by the Speaker of the House.

        11              (Commissioner Crawford entered the room.)

        12              MS. JARRIEL:  And if you will accept that 

        13          status report into the record, that concludes 

        14          our agenda.

        15              GOVERNOR BUSH:  Do we have to move and 

        16          second it, or is it just --

        17              COMPTROLLER MILLIGAN:  No, sir.  I -- 

        18              GOVERNOR BUSH:  -- accept it --

        19              COMPTROLLER MILLIGAN:  -- we can just 

        20          accept the report. 

        21              I -- you know, that's a -- kind of a long, 

        22          rather dry subject.  But I -- I think it's 

        23          important to acknowledge the -- how important 

        24          this is. 

        25              And we're talking about 15 to 20 billion 

                        ACCURATE STENOTYPE REPORTERS, INC.

                           STATE BOARD OF ADMINISTRATION          28
                                 December 12, 2000
         1          dollars that we're dealing with.  So it's not 

         2          loose change.  And so all of these issues are 

         3          critical issues that demand the -- the highest 

         4          attention by the Trustees.

         5              GOVERNOR BUSH:  I mean, it -- it is -- you 

         6          think about 700,000 people over a six-month 

         7          period being offered the chance to take their 

         8          pension -- their retirement system, the 

         9          traditional retirement system, where you serve 

        10          for X numbers of years and you're vested, and 

        11          then you get a fixed amount upon retirement, 

        12          which is the traditional way of doing that, to 

        13          give them the chance to move to a -- I would 

        14          call -- I'm not a technician, so I don't want 

        15          to call it the 401(k) type plan where people 

        16          have a portable retirement account where they 

        17          make decisions themselves in varying degrees of 

        18          sophistication, depending on how we present it. 

        19              This is an awesome undertaking, and it's -- 

        20          as -- as you said, it's the largest of its kind 

        21          in the world.

        22              So Florida is really on the cutting edge 

        23          of -- of -- of this, and, therefore, there are 

        24          a lot of people interested in it, and, 

        25          therefore, we get challenged along the way, as 

                        ACCURATE STENOTYPE REPORTERS, INC.

                           STATE BOARD OF ADMINISTRATION          29
                                 December 12, 2000
         1          is the case in -- in anything in public policy. 

         2              But we're -- we're -- we're very pleased 

         3          with how the SBA has handled this so far -- the 

         4          State Board of Administration -- excuse me.

         5              COMMISSIONER CRAWFORD:  Slip up.

         6              GOVERNOR BUSH:  Thank you. 

         7              (The State Board of Administration Agenda 

         8          was concluded.)

         9                              *   *   *

















                        ACCURATE STENOTYPE REPORTERS, INC.

                               DEPARTMENT OF REVENUE              30
                                 December 12, 2000
         1              GOVERNOR BUSH:  Department of Revenue.

         2              COMMISSIONER GALLAGHER:  Motion on the 

         3          minutes.

         4              COMMISSIONER CRAWFORD:  Second.

         5              GOVERNOR BUSH:  There's a motion on the 

         6          minutes, and a second. 

         7              Without objection, it's approved.

         8              This is Dr. Jim Zingale.  We call him 

         9          Dr. Z.  He's the tax man. 

        10              He's going to explain how he's making the 

        11          Department of Revenue a friendly place for 

        12          Floridians.

        13              DR. ZINGALE:  The -- the agency everyone 

        14          will learn to love.

        15              GOVERNOR BUSH:  Whether they like it or 

        16          not.

        17              DR. ZINGALE:  Whether they like it or not.

        18              The Department of Revenue has three primary 

        19          business functions.  We do -- we are the -- the 

        20          tax people in Florida. 

        21              We administer 34 different taxes.  We call 

        22          it property tax administration.  Major sources 

        23          of revenue are sales tax, corporate income tax, 

        24          motor fuel tax, intangible tax. 

        25              The intangible tax, this January, those 

                        ACCURATE STENOTYPE REPORTERS, INC.

                               DEPARTMENT OF REVENUE              31
                                 December 12, 2000
         1          intangible tax filers in the state will be 

         2          getting their return for the next year.  It 

         3          will incorporate the repeal -- the final repeal 

         4          of the second mill.  Major tax relief for 

         5          that -- that group of individuals. 

         6              Anticipating in the future --

         7              Is that me going off, or somebody else?

         8              -- anticipating in the future, that entire 

         9          tax may be repealed over the next two sessions.

        10              We go through substantial law changes every 

        11          year to the taxes that we administer.  

        12          Unemployment compensation was a tax that was 

        13          transferred this last year from the 

        14          Department of Labor to the Department of 

        15          Revenue. 

        16              We have had a -- a very successful 

        17          transformation of a very major tax.  It 

        18          occurred on October, three months ahead of 

        19          schedule. 

        20              I think most of us would -- would realize 

        21          that this was a major change in an 

        22          administrative -- of a tax in a very short 

        23          period of time.  It's happened relatively 

        24          seamlessly. 

        25              We made the phone conversions, the money 

                        ACCURATE STENOTYPE REPORTERS, INC.

                               DEPARTMENT OF REVENUE              32
                                 December 12, 2000
         1          has been now processed for two consecutive 

         2          months.  I think it's been a relatively 

         3          seamless transition for the corporations and 

         4          businesses that we deal with. 

         5              We were able to achieve that with a 

         6          substantial reduction in staff from somewhere 

         7          in excess of 400, down to about 300, two to 

         8          three million dollars worth of savings in the 

         9          initial phase of that transformation.

        10              I think that is an example of the kind of 

        11          things we're trying to do in the Department of 

        12          Revenue with new technology. 

        13              I think the Legislature, understanding that 

        14          we have a commitment to simplification, to 

        15          making taxes easier to pay, and to trying to do 

        16          it in a more cost-effective manner, this last 

        17          session passed a -- a major change in what is 

        18          the telecommunication tax. 

        19              I don't know how many people have really 

        20          studied their telephone bills lately.  But if 

        21          they do, they find it's a very complex 

        22          document, with a myriad of local taxes, with 

        23          different tax bases applied to it --

        24              GOVERNOR BUSH:  Well, I don't think they 

        25          see it.  That's why they don't know.

                        ACCURATE STENOTYPE REPORTERS, INC.

                               DEPARTMENT OF REVENUE              33
                                 December 12, 2000
         1              But if they --

         2              DR. ZINGALE:  They would, yeah.

         3              GOVERNOR BUSH:  -- if they knew how much 

         4          they paid in taxes, they'd be coming to talk to 

         5          the Mayor and the Council.

         6              DR. ZINGALE:  That is true.  It is a 

         7          local --

         8              GOVERNOR BUSH:  And then us.

         9              DR. ZINGALE:  -- it -- it had been a local 

        10          levy tax, and administered locally.  And this 

        11          last session, that administration has been 

        12          passed over to the Department of Revenue, along 

        13          with some major simplifications, things that 

        14          are going to make the payment of that tax much 

        15          more obvious in terms of tax burden, much 

        16          simpler to understand. 

        17              It is a conversion from a local 

        18          administered tax to a State administered tax.  

        19          Major tax conversions have to take place, and 

        20          databases forms an activity. 

        21              Again, that -- that administration or that 

        22          conversion is -- is on schedule.

        23              We have been undertaking what is now 

        24          Phase II of a major change in an 

        25          enterprise-wide computer system.  We have 

                        ACCURATE STENOTYPE REPORTERS, INC.

                               DEPARTMENT OF REVENUE              34
                                 December 12, 2000
         1          gotten good partners with Deloitte Consulting 

         2          and SAP, a German company that's a world 

         3          renowned integrator of financial systems. 

         4              And they have been working with us to give 

         5          the Department of Revenue probably the finest 

         6          computer system of any tax agency in the 

         7          country.

         8              Phase II in the next coming year, we'll see 

         9          corporate income tax integrated into that 

        10          system in March.  Come next October, we will 

        11          bring the telecommunications tax up in that 

        12          system. 

        13              And in 12 months, beginning of January next 

        14          year, we will have sales tax up, and at that 

        15          point in time, we will have the -- the largest 

        16          administration of a tax system in a -- using 

        17          the modern tools that are afforded with today's 

        18          technology.

        19              That will allow us to do some very 

        20          remarkable things in the tax area.  One-stop 

        21          registration across almost all of our taxes; 

        22          single point of contact for things like 

        23          collecting, taxpayer information, educating 

        24          taxpayers on what their burden is.

        25              I think the Department of Revenue is 

                        ACCURATE STENOTYPE REPORTERS, INC.

                               DEPARTMENT OF REVENUE              35
                                 December 12, 2000
         1          nationally known for innovators in terms of 

         2          applied technology in this area. 

         3              Matter of fact, in the last few weeks, we 

         4          had a Scandinavian country come down and visit, 

         5          Australia's come in and seen the system. 

         6              We have the capability of processing 

         7          24 billion dollars a year.  And last year, we 

         8          actually processed one billion dollars in a 

         9          day, money in the bank, data in the computer, 

        10          image stored, a remarkable achievement for some 

        11          people that are working exceedingly hard. 

        12              Most people don't know it, but we are one 

        13          of the few State agencies -- revenue agency in 

        14          the country, that has child support program. 

        15              Approximately six years ago, the 

        16          Legislature, looking around for a place to put 

        17          the child support program, blessed the 

        18          Department of Revenue with giving us the 

        19          program.

        20              GOVERNOR BUSH:  You volunteered for it, 

        21          didn't you, Jim? 

        22              DR. ZINGALE:  We volunteered for it.  I'm 

        23          not so sure Larry did.  But I was sitting there 

        24          on the other side saying, I'd be glad to take 

        25          it.  I think it's a wonderful program. 

                        ACCURATE STENOTYPE REPORTERS, INC.

                               DEPARTMENT OF REVENUE              36
                                 December 12, 2000
         1              We have approximately 1.1 million children 

         2          that we have to serve.  The program itself --

         3              GOVERNOR BUSH:  Can you repeat that?  

         4          Because I don't know -- I think -- I'm always 

         5          surprised at that number. 

         6              How many people --

         7              DR. ZINGALE:  Well, 1.1 million children 

         8          need help in establishing who their fathers 

         9          are, in establishing paternity, and getting 

        10          support orders collected --

        11              GOVERNOR BUSH:  How many children are there 

        12          in the state? 

        13              DR. ZINGALE:  I'm not sure about that --

        14              GOVERNOR BUSH:  I think it's about 

        15          25 percent of all the kids in the state.

        16              DR. ZINGALE:  About 25 percent.  So --

        17              GOVERNOR BUSH:  -- some people --

        18              DR. ZINGALE:  -- approximately 7 million.

        19              GOVERNOR BUSH:  -- or should be, have 

        20          all -- not all of them are receiving it, but 

        21          should be receiving some form of child support, 

        22          just to put it in perspective.

        23              COMMISSIONER GALLAGHER:  We've got 

        24          2.3 million in school.  So that'd be 

        25          six years --

                        ACCURATE STENOTYPE REPORTERS, INC.

                               DEPARTMENT OF REVENUE              37
                                 December 12, 2000
         1              GOVERNOR BUSH:  So you get all the little 

         2          guys --

         3              COMMISSIONER GALLAGHER:  Then you've got to 

         4          add the young guys.

         5              DR. ZINGALE:  It's -- 

         6              GOVERNOR BUSH:  So it's actually -- maybe a 

         7          third.

         8              DR. ZINGALE:  It's a major -- a major 

         9          portion of the children population in Florida. 

        10              The first -- first job is a fairly critical 

        11          one, finding children their fathers, both 

        12          emotionally and legally, going in front of a 

        13          court, through genetic testing, finding out who 

        14          the -- the biological fathers are, and 

        15          establishing a legal right, not only for the 

        16          18 years of that childhood, but a legal right 

        17          for the whole lifetime of that child. 

        18              We establish support orders, a financial 

        19          obligation, a medical obligation, sometimes an 

        20          obligation to support college. 

        21              And in today's day and age, we are the 

        22          enforcement effort to do that, and have a wide 

        23          array of tools afforded us today that we didn't 

        24          have a few years ago. 

        25              We can suspend driver's license, 

                        ACCURATE STENOTYPE REPORTERS, INC.

                               DEPARTMENT OF REVENUE              38
                                 December 12, 2000
         1          occupational license.  We can go in and 

         2          identify a single employer that's hired 

         3          somebody.  A single hiree is reported to the 

         4          Department of Revenue so we can make sure we 

         5          know if the noncustodial parents are employed.

         6              We can sweep financial institutions across 

         7          the entire country today in today's technology:  

         8          Bank accounts; savings and loans; we can freeze 

         9          assets, and have frozen assets, in all 

        10          50 states.  We have a newly established network 

        11          through the Federal registry to be able to 

        12          track where noncustodial parents move 

        13          throughout the state. 

        14              A program today on the child support 

        15          side -- well, back up -- on the tax side, 

        16          I think it's widely recognized.  We have one of 

        17          the best Department of Revenues in the country. 

        18              On the child support side, the State 

        19          portion of the program is average.  I think 

        20          when the Feds finish their rankings, I think 

        21          you'll find, we're going to fall somewhere in 

        22          the mid-25th of the 50 states. 

        23              That's a substantial increase since we've 

        24          taken the program.  We used to be in the bottom 

        25          five not too long ago. 

                        ACCURATE STENOTYPE REPORTERS, INC.

                               DEPARTMENT OF REVENUE              39
                                 December 12, 2000
         1              We have an aggressive program in front of 

         2          the Legislature this year in terms of a new 

         3          computer system, new law changes that will help 

         4          us in terms of our enforcement activity, all of 

         5          which have been approved by this Governor and 

         6          Cabinet, and we appreciate that support. 

         7              We're looking for a very explosive 

         8          four years ahead to get to the best in the 

         9          country in that program.

        10              In terms of the third program that we have.  

        11          We are the overseers of tax collectors, clerks, 

        12          property appraisers.  These are all, like the 

        13          Cabinet members, independently elected 

        14          officials. 

        15              We provide a very substantial oversight of 

        16          that kind of responsibility.  In the property 

        17          tax area, property appraisers by Constitution 

        18          are given the responsibility to assess all 

        19          valued property in the state. 

        20              Our job is to help them along that way in 

        21          terms of technical assistance, helping them get 

        22          their job done correctly.  And we provide an 

        23          oversight function at the end that, right now, 

        24          is going through also a fairly large 

        25          transformation. 

                        ACCURATE STENOTYPE REPORTERS, INC.

                               DEPARTMENT OF REVENUE              40
                                 December 12, 2000
         1              We have drawn the samples using new 

         2          technology this year.  We've had our field 

         3          appraisers out there doing due diligence 

         4          seven days a week, in most cases, to try to get 

         5          ready for this next roll approval cycle in 

         6          midsummer. 

         7              A very significant function, not only for 

         8          cities' and county's tax base, but it is the 

         9          largest taxing source dedicated to public 

        10          schools.

        11              Those are the kind of things we do.  It's 

        12          an obligation of mine every time I'm up in 

        13          front of the Governor and Cabinet to talk about 

        14          strategic planning, something that we dearly 

        15          love in the Department of Revenue. 

        16              It's my understanding though that the 

        17          Governor is putting up on his, or 

        18          the State's website, an entry level into every 

        19          state's strategic plan sometime over the next 

        20          four to five months. 

        21              It's going to be able to have citizens go 

        22          into that -- that website and click into the 

        23          major parameters that are governing how State 

        24          agencies are run.

        25              The Department of Revenue has its current 

                        ACCURATE STENOTYPE REPORTERS, INC.

                               DEPARTMENT OF REVENUE              41
                                 December 12, 2000
         1          strategic plan on-line, down on our Intranet to 

         2          every employee.  We're going to be taking 

         3          between now and June to clean that up so we can 

         4          link into, and citizens cannot 

         5          only look at us at a 50,000 foot level, but go 

         6          right down to where the employees are, and see 

         7          what we're trying to achieve over the next 

         8          five years.

         9              That's an overview of the Florida 

        10          Department of Revenue.  We're excited to be 

        11          here. 

        12              Now we'd like to move over to our agenda. 

        13              At that stage, the obligatory glasses go on 

        14          so I can see what I'm supposed to say.

        15              Item Number 1, I guess we had the minutes 

        16          approved? 

        17              GOVERNOR BUSH:  Yes, we did.

        18              Item 2.

        19              DR. ZINGALE:  Item Number 2 are some very 

        20          technical rule changes that deal with an 

        21          internal reorganization. 

        22              We ask approval of those two rules.

        23              COMMISSIONER GALLAGHER:  Motion on 2.

        24              COMMISSIONER CRAWFORD:  Second.

        25              GOVERNOR BUSH:  Moved and seconded.

                        ACCURATE STENOTYPE REPORTERS, INC.

                               DEPARTMENT OF REVENUE              42
                                 December 12, 2000
         1              Without objection, it's approved.

         2              DR. ZINGALE:  The last three items deal 

         3          with three additional legislative concepts.  We 

         4          had the majority of our legislative concepts at 

         5          the last Cabinet meeting. 

         6              The first one deals with unemployment 

         7          compensation tax.  The Department of Revenue 

         8          had some enforcement tools, electronic funds 

         9          transfer, garnishment of wages, some additional 

        10          confidentiality requirements, and some 

        11          extension of deadlines to have that new tax 

        12          that we've received conform to how the rest of 

        13          our taxes are administered. 

        14              We're putting forth that legislative 

        15          concept, and request approval.

        16              COMMISSIONER GALLAGHER:  Motion on 3.

        17              COMMISSIONER CRAWFORD:  Second.

        18              GOVERNOR BUSH:  Moved and seconded.

        19              Without objection, it's approved.

        20              DR. ZINGALE:  We have two legislative 

        21          concepts in the ad valorem area.  One deal with 

        22          the Auditor General's request in terms of the 

        23          capping of the assessment ratios that are 

        24          certified to the Department of Education. 

        25              The Auditor General asked that we put that 

                        ACCURATE STENOTYPE REPORTERS, INC.

                               DEPARTMENT OF REVENUE              43
                                 December 12, 2000
         1          in statute, and we concurred with that 

         2          recommendation. 

         3              And we have been working very diligently 

         4          with Commissioner Gallagher's staff in terms of 

         5          a way of producing that capping in a way that 

         6          will be more publicly acceptable, both to the 

         7          property appraisers and the citizens, in terms 

         8          of how that capping is achieved. 

         9              It'll not affect the distribution.

        10              Request approval of that issue.

        11              COMMISSIONER GALLAGHER:  I thought that was 

        12          included.

        13              We did all of Item 3.

        14              DR. ZINGALE:  Oh, we did all of Item 3.

        15              GOVERNOR BUSH:  Are you -- Commissioner, 

        16          you're pleased with this?  This is the same 

        17          issue you brought up last time?

        18              COMMISSIONER GALLAGHER:  Yeah. 

        19              What -- what was happening, Governor, is 

        20          that the mathematics used in -- in setting the 

        21          assessments was causing some property -- 

        22          property ad valorem tax rolls to look like they 

        23          were in excess of 100 percent, which really 

        24          wasn't true, but the math showed that it was. 

        25              And so what we agreed to -- to do is to set 

                        ACCURATE STENOTYPE REPORTERS, INC.

                               DEPARTMENT OF REVENUE              44
                                 December 12, 2000
         1          it at 100, and then use an index below that, so 

         2          that that -- all of the differences between 

         3          them are the same, which is really what the 

         4          issue is, as opposed to having anything show 

         5          that it's over 100 percent.

         6              DR. ZINGALE:  Good suggestion.  And it's in 

         7          the proposal.

         8              GOVERNOR BUSH:  Thank you.

         9              DR. ZINGALE:  Thank you very much.

        10              GOVERNOR BUSH:  Thank you, Jim.

        11              (The Department of Revenue Agenda was 

        12          concluded.)

        13                              *   *   *













                        ACCURATE STENOTYPE REPORTERS, INC.

                             STATE BOARD OF EDUCATION             45
                                 December 12, 2000
         1              GOVERNOR BUSH:  State Board of Education.

         2              COMMISSIONER GALLAGHER:  Motion on the 

         3          minutes.

         4              COMMISSIONER CRAWFORD:  Second.

         5              GOVERNOR BUSH:  Moved and seconded.

         6              Without objection, it's approved. 

         7              Do you want to give us a little bit of --

         8              Commissioner, do you want to --

         9              COMMISSIONER GALLAGHER:  I will.

        10              As the Commissioner of Education, I have 

        11          many responsibilities.  But I primarily serve 

        12          on three Boards, one is the State Board of 

        13          Education, which we as the Cabinet sit as.  And 

        14          as the Governor's the Chairman of the 

        15          State Board, and I sit as the Secretary of the 

        16          State Board of Education.

        17              I also serve as a member of the 

        18          Board of Regents, which is -- oversees the 

        19          university system; and the Board of Community 

        20          Colleges, which oversees the community college 

        21          system.

        22              The State Board of Education's primary job 

        23          is to oversee all of public education.  And we 

        24          adopt the rules that deal with the improvement 

        25          of the State system for public education, as 

                        ACCURATE STENOTYPE REPORTERS, INC.

                             STATE BOARD OF EDUCATION             46
                                 December 12, 2000
         1          long as those rules are based on provisions of 

         2          law. 

         3              Public education is basically a function 

         4          and responsibility of the State.  And it's our 

         5          responsib-- and it's our responsibility as that 

         6          State Board of Education to ensure the 

         7          efficient operation of all schools, and the 

         8          adequate educational opportunities for all of 

         9          our children in the state of Florida.

        10              As Commissioner of Education, I have the 

        11          duty to advise and counsel with the State Board 

        12          of Education on all matters pertaining to 

        13          education, and to recommend to the State Board 

        14          of Education, actions and policies to be acted 

        15          upon.

        16              Within the Department of Education, we have 

        17          a variety of responsibilities.  We have over 

        18          3500 schools statewide, with a total student 

        19          enrollment of two million three hundred and 

        20          seventy-six thousand. 

        21              We handle such diverse issues as teacher 

        22          certification, curriculum and assessment, 

        23          administration of the Bright Futures 

        24          Scholarship Program, and we provide the funding 

        25          for the K through 12 schools. 

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                             STATE BOARD OF EDUCATION             47
                                 December 12, 2000
         1              If any of you would like information on 

         2          Bright Futures Scholarship Program, or any of 

         3          the other educational issues, we will have a 

         4          table at the Agency Fair outside this 

         5          afternoon.

         6              Thank you.

         7              GOVERNOR BUSH:  And all that's going to 

         8          change.

         9              COMMISSIONER GALLAGHER:  That's true.

        10              In January of 2003, the job of elected 

        11          Commissioner of Education will no longer exist, 

        12          and there will be an appointed, seven-member 

        13          Board of Education appointed by the Governor. 

        14              That Board of Education will oversee all of 

        15          education, probably pre-K all the way through 

        16          grade 20, doctorate degrees.

        17              And they will appoint a Commissioner of 

        18          Education, which will be the Chief Executive 

        19          Officer of Education in Florida. 

        20              And underneath that, will most likely be a 

        21          chancellor for the university system, and a 

        22          chancellor for the community college system, 

        23          and a chancellor for the K through 12 system.  

        24          And something will probably move in later on 

        25          the pre-K. 

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                             STATE BOARD OF EDUCATION             48
                                 December 12, 2000
         1              But the idea is to see to it that we have a 

         2          seamless educational system in Florida, 

         3          overseen by an appointed Board of Education.  

         4          That will take place officially, statutorily -- 

         5          constitutionally January of the year 2003.

         6              In the meantime, we're still operating.

         7              And so, Wayne, would -- if you would.

         8              MR. PIERSON:  Item 2 on the agenda is a 

         9          report on the Continued Program Approval 

        10          Standards and Principles of Professional 

        11          Conduct for the Education Profession in 

        12          Florida.

        13              Presenting will be Steven Bouzianis and 

        14          Dr. William Proctor.

        15              GOVERNOR BUSH:  Good morning.

        16              MR. BOUZIANIS:  Good morning.

        17              Good morning, Governor Bush, and Cabinet 

        18          members.  My name is Stephen Bouzianis, and I'm 

        19          the Chair of the Florida Education Standards 

        20          Commission. 

        21              I'm also Human Resources Administrator in 

        22          Seminole County Public Schools.  I have with 

        23          me, Dr. William Proctor, who's the First 

        24          Vice Chair of the Commission, and also 

        25          President of Flagler College in St. Augustine.

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                             STATE BOARD OF EDUCATION             49
                                 December 12, 2000
         1              Having been a teacher, I know the old adage 

         2          goes that you want to grab for those teaching 

         3          moments.  And since we have a number of 

         4          students and teachers in our audience, if I 

         5          could very briefly explain the powers and 

         6          duties of the Commission.

         7              The Florida Education Standards Commission 

         8          was created in 1980 by the Florida Legislature 

         9          in Section 231.545 of Florida Statutes. 

        10              I would like to make special recognition, 

        11          that gives us -- makes our 20-year anniversary, 

        12          and we recently received a resolution from the 

        13          Cabinet celebrating our 20th year, and we 

        14          really do appreciate the support. 

        15              Again, for our audience members, the State 

        16          of Florida has always recognized when they do 

        17          state-by-state comparisons, that we do have a 

        18          Standards Commission, and an organized process 

        19          for establishing teacher standards.  So we need 

        20          to be very proud of that.

        21              Second, there are 24 members, consisting of 

        22          practicing educators and citizens who are 

        23          nominated by the Commissioner of Education, 

        24          appointed by the State Board of Education, and 

        25          confirmed by the Senate.

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                             STATE BOARD OF EDUCATION             50
                                 December 12, 2000
         1              Of those 24 members, 12 are teachers, and 

         2          there are also representatives from the public 

         3          colleges -- public universities and private 

         4          universities; community colleges; personnel, of 

         5          which I'm the personnel member; principalships; 

         6          and lay citizens.

         7              The Commission makes policy recommendations 

         8          to the State Board of Education, to the Florida 

         9          Legislature in the following areas:  

        10          Pre-service teacher preparation programs, 

        11          continued approval of preservice teacher 

        12          preparation programs, teacher certification, 

        13          teacher evaluation, in-service, and standards 

        14          of professional conduct for the education 

        15          profession.

        16              Keeping that in mind, we have two 

        17          recommendations to present this morning.  First 

        18          is the continued program approval of teacher 

        19          preparation programs; and second, modifications 

        20          to the principles of professional conduct for 

        21          the education profession in Florida.

        22              This morning we're going to talk 

        23          specifically about the recommendations for a 

        24          continued program approval of teacher 

        25          preparation programs.  These are the 

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                             STATE BOARD OF EDUCATION             51
                                 December 12, 2000
         1          performance standards that are used by the 

         2          Florida Department of Education to continue to 

         3          approve pre-service teacher preparation 

         4          programs in Florida's public and private 

         5          institutions of higher education.

         6              There are three directives that the Florida 

         7          Education Standards Commission is responding 

         8          to:  First, the legislative directive pursuant 

         9          to House Bill 63; second, the Federal directive 

        10          pursuant to Federal Title II; and, thirdly, the 

        11          Commissioner's directive pursuant to State 

        12          Board of Education Rule 6A-5.066.

        13              I'm going to turn it over to my esteemed 

        14          colleague, Dr. Proctor, who's going to go over 

        15          these recommendations with you. 

        16              It's an honor to be -- be -- to come before 

        17          you today.

        18              Thank you.

        19              GOVERNOR BUSH:  Thank you.

        20              DR. PROCTOR:  Thanks, Steve.

        21              Governor Bush, members of the Cabinet, 

        22          essentially there are four major 

        23          recommendations we'd like to bring to -- to you 

        24          today, all having to do with continued program 

        25          approval standards.

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                             STATE BOARD OF EDUCATION             52
                                 December 12, 2000
         1              The first is that teacher candidates must 

         2          receive instruction in classroom management, 

         3          and in working with underachieving students.

         4              That recommendation has its origin in 

         5          House Bill 63. 

         6              The second addresses the recency of 

         7          experience that teacher preparation faculty 

         8          members who teach professional education 

         9          courses in grades pre-K through 12. 

        10              And that recommendation has its origin in 

        11          State Board of Education Rule 6A-5.066. 

        12              The Commission recommends that teacher 

        13          preparation faculty who teach professional 

        14          preparation courses as defined in State Board 

        15          Education Rule 6A-4.006 shall demonstrate 

        16          evidence of regency of experience by 

        17          involvement in classroom instruction in grades 

        18          pre-K through 12, by no fewer than 12 days -- 

        19          I'm sorry -- for no fewer than three days per 

        20          year.

        21              Our third recommendation addresses the 

        22          satisfaction of employing school districts with 

        23          certain competencies of teacher program 

        24          graduates.  Among those competencies are 

        25          writing, speaking, reading instruction, 

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                                 December 12, 2000
         1          computation, knowledge of instructional 

         2          technology, and knowledge of Sunshine State 

         3          Standards.

         4              That recommendation has its origin in 

         5          House Bill 63. 

         6              The fourth pertains to the Federal Title II 

         7          Higher Education Act, which deals with 

         8          accountability recording system for the 

         9          colleges of education, and for the State.

        10              Those are our four recommendations, and I 

        11          welcome any questions.

        12              GOVERNOR BUSH:  Three hours a year --

        13              DR. PROCTOR:  Three days --

        14              GOVERNOR BUSH:  Excuse me.  Three days a 

        15          year? 

        16              DR. PROCTOR:  Yes, sir.  Three days.

        17              GOVERNOR BUSH:  Think that's a little 

        18          light?

        19              DR. PROCTOR:  Three days a year.

        20              GOVERNOR BUSH:  Mr. President, don't you 

        21          think that's a little light? 

        22              DR. PROCTOR:  Well, there was most 

        23          discussion on this one, but we realize that 

        24          each time we mandate a day, we also take a day 

        25          out of the college classroom. 

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                             STATE BOARD OF EDUCATION             54
                                 December 12, 2000
         1              Over a five-year period, that would be 

         2          15 days, equivalent to two weeks of classroom 

         3          time.

         4              GOVERNOR BUSH:  Do we have any teachers in 

         5          the room? 

         6              Anybody want to speak on this subject?  

         7          This -- just -- if you can sign -- if you 

         8          don't, you don't have to.

         9              I just -- I'm curious to know what 

        10          practicing teachers think about the College of 

        11          Education's training of -- of new teachers, and 

        12          are they prepared with -- prepared to be 

        13          teachers by going -- taking courses, or would 

        14          practical classroom help maybe make it easier 

        15          for them to adjust? 

        16              Anybody want to speak on that?

        17              MS. CASTILLE:  Come on up.

        18              GOVERNOR BUSH:  Come on up.

        19              I knew we've got some teachers, because 

        20          we've got some students.

        21              If you could sign up first, and just state 

        22          your name.  And we'll take advantage of some 

        23          practical expertise. 

        24              Doctor, I hope you don't mind. 

        25              I'm messing up things, but --

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                             STATE BOARD OF EDUCATION             55
                                 December 12, 2000
         1              COMMISSIONER GALLAGHER:  I can tell you --

         2              GOVERNOR BUSH:  -- what the heck.

         3              COMMISSIONER GALLAGHER:  -- that this is 

         4          a -- this is an issue, Governor, that has had a 

         5          lot of discussion in --

         6              GOVERNOR BUSH:  I'm surprised you didn't 

         7          bring it.

         8              COMMISSIONER GALLAGHER:  Oh, I did.  This 

         9          is -- this is sort of where we --

        10              GOVERNOR BUSH:  Is this a compromise --

        11              COMMISSIONER GALLAGHER:  -- you see the 

        12          smiles over here? 

        13              We had a lot of discussion about this.  

        14          I -- I'm very concerned of the -- the short 

        15          amount of time that this -- that they're 

        16          recommending to us. 

        17              Obviously we still -- the rules are still 

        18          coming through, and -- and will.  But we would 

        19          like the Standards Commission to be involved 

        20          in -- in that process.

        21              GOVERNOR BUSH:  Oh, absolutely.  I just -- 

        22          I -- I think it's an opportune time to talk to 

        23          some practitioners.

        24              MR. CONROY:  I'm Matt Conroy.

        25              GOVERNOR BUSH:  Matt, how are you doing?

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                             STATE BOARD OF EDUCATION             56
                                 December 12, 2000
         1              MR. CONROY:  I'm doing wonderful.  Doing 

         2          wonderful.

         3              GOVERNOR BUSH:  E-mail pal.

         4              MR. CONROY:  We -- I've been in 

         5          Brevard County schools for 20 years.  I've been 

         6          a teacher for many of those years. 

         7              Currently right now I work with schools in 

         8          Palm Bay, Florida.  There's 14 schools, 

         9          elementary and middle school, and high school.  

        10          And I work with teachers on in-servicing and 

        11          preparation.

        12              And -- which is a very exciting position to 

        13          be in.

        14              And the -- and sadly to say, a lot of our 

        15          new teachers that we have coming from 

        16          universities aren't -- don't have the skills -- 

        17          many of the skills necessary for working in the 

        18          classrooms with teachers with technology, 

        19          making things as relevant to students as 

        20          I think that they could be. 

        21              I'm very concerned with teachers that we 

        22          get -- enter the profession that leave the 

        23          profession because they weren't prepared for 

        24          the classroom; and their classroom experiences, 

        25          when they enter the classroom, are much 

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                             STATE BOARD OF EDUCATION             57
                                 December 12, 2000
         1          different than reality. 

         2              And I think -- I think more time spent in 

         3          the schools, a lot of our traditional teachers 

         4          that move into the classrooms are prepared to 

         5          teach students for maybe a decade or two ago, 

         6          but not for the 21st century. 

         7              And I think a lot of our students need to 

         8          be prepared for -- their careers in life are 

         9          going to be changing five to seven times during 

        10          their lives.  They're not prepared for that.

        11              When students leave us at the high school 

        12          level, they need to be prepared to enter the 

        13          workforce, and continue their education at a 

        14          postsecondary institution. 

        15              We have a large number of students.  

        16          I think the state of Florida, we have a dropout 

        17          rate -- or a nongraduation rate of 

        18          62.3 percent, I believe, in the state of 

        19          Florida.

        20              GOVERNOR BUSH:  Wow.

        21              MR. CONROY:  Brevard County is about 

        22          80 percent, which is -- I think Brevard County 

        23          schools does an excellent job. 

        24              But I think all of these things are 

        25          indicative of teacher preparation, and we need 

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                             STATE BOARD OF EDUCATION             58
                                 December 12, 2000
         1          to do a better job with that in keeping -- 

         2          keeping reality of what's going on at the 

         3          university system, and with realities of the 

         4          students and what's happening in the classroom, 

         5          and in preparing our teachers to teach kids for 

         6          the world of the 21st century.

         7              GOVERNOR BUSH:  Yeah, General.

         8              ATTORNEY GENERAL BUTTERWORTH:  Let me ask 

         9          you a question, sir.

        10              MR. CONROY:  Yes.

        11              ATTORNEY GENERAL BUTTERWORTH:  Thank you, 

        12          Governor.

        13              The -- the dropout rate is something that 

        14          concerns all of us up here. 

        15              Do you believe that a person actually drops 

        16          out of school at the age of sixteen, or they 

        17          really effectively drop out of school in 

        18          kindergarten and the 1st grade? 

        19              MR. CONROY:  I think it's a process.  I 

        20          don't think it happens all at one time.  We 

        21          lose a lot of students in our middle schools -- 

        22          a lot of -- 

        23              ATTORNEY GENERAL BUTTERWORTH:  From the 

        24          standpoint of the -- they're starting off in 

        25          school so far behind somebody else, some people 

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                             STATE BOARD OF EDUCATION             59
                                 December 12, 2000
         1          are not prepared to actually enter kindergarten 

         2          or 1st grade, and they're really starting 

         3          25 yards behind in a 100 yard dash, many of 

         4          them not understanding -- they cannot spell 

         5          their last name, they don't know red from blue, 

         6          they -- a square from a circle, and --

         7              Are we basically being able to -- when we 

         8          talk about teachers not being prepared --

         9              MR. CONROY:  Right.

        10              ATTORNEY GENERAL BUTTERWORTH:  -- maybe 

        11          you've got teachers not being prepared in those 

        12          early grades to be able to deal with the 

        13          student who is so far behind.  

        14              And then, therefore, that child, 

        15          in essence, never does catch up, and when the 

        16          administrator says when they're sixteen, let me 

        17          read you your rights, one of your rights is you 

        18          can -- you can now leave school. 

        19              Hey, man, you've got to be kidding me, I'm 

        20          gone.

        21              Is that -- is this a problem, or --

        22              MR. CONROY:  Well, I think when we have a 

        23          classroom, teachers -- teachers have an extreme 

        24          challenge in front of them working with -- 

        25          I mean, as a classroom teacher, you can't 

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                             STATE BOARD OF EDUCATION             60
                                 December 12, 2000
         1          effect what's happening at home with the 

         2          parent, with the child.  The numbers that -- 

         3          the 1.1 million of parents --

         4              GOVERNOR BUSH:  Still receiving 

         5          child support.

         6              MR. CONROY:  Right. 

         7              You know, those -- that -- that was a 

         8          number I wasn't prepared for a minute ago.  

         9          That shocked me. 

        10              Those things come into play, and a 

        11          classroom teacher can't effect those types of 

        12          things. 

        13              However, I think to help the classroom 

        14          teacher with smaller class sizes, when you have 

        15          a teacher with 30 and 40 students in a 

        16          classroom, that's obviously less individual 

        17          time to give those students to identify 

        18          individual needs to help those students.

        19              When the student reaches age sixteen, 

        20          you know, I have a thing when I worked with 

        21          students at the middle school levels, you ask a 

        22          group of seventh and eighth graders how many of 

        23          them are going to college, they all raise their 

        24          hands, they're all wanting to go to college. 

        25              But in high school, we need to have a 

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                             STATE BOARD OF EDUCATION             61
                                 December 12, 2000
         1          process in place and -- and, Governor, I've 

         2          written -- we've chatted back and forth about 

         3          some electronic course planning. 

         4              And there's some tools of technology that 

         5          are currently available today that I think we 

         6          need to look at, and some procedures to change 

         7          in our guidance -- in our high schools, and 

         8          give our guidance counselors more help, and -- 

         9          and more foc-- more people to work with 

        10          students. 

        11              Some of our ratios in some of our schools 

        12          are one guidance counselor per five -- or 

        13          525 students.  You know, those are some places 

        14          we need to work with. 

        15              I said awhile ago, we have -- you know, in 

        16          the 1950s and '60s, some of those procedures 

        17          were fine, because students could go to school, 

        18          graduate high school, or maybe not graduate 

        19          high school, and still work in industry and get 

        20          some -- get some decent jobs. 

        21              But today I think we have a lot more 

        22          opportunities for students.  And when that 

        23          student you were talking about reaches age 

        24          sixteen, it's more complex, well, I just turned 

        25          sixteen. 

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                                 December 12, 2000
         1              If there's some opportunities for that 

         2          student to stay in school, they're going to 

         3          stay in school. 

         4              And I think if we spend some time in 

         5          bringing parents back into our schools, and 

         6          some procedures for students to have a 

         7          high school course of study with a 

         8          post-high school graduation plan, maybe that 

         9          student you were talking about, when he reaches 

        10          sixteen, maybe there's some vocational 

        11          opportunities for that student that maybe the 

        12          mom and dad aren't aware of. 

        13              Gold Seal Scholarships, which is part of 

        14          the Bright Futures, maybe they're not even 

        15          aware of those, or they're taking their own 

        16          courses in ninth and tenth grade to be prepared 

        17          for Bright Future Scholarships.  And mom and 

        18          dad don't -- you know, there's things that we 

        19          can do to effectuate that. 

        20              So I think it's not as simplistic as by the 

        21          time they turn sixteen, I'm going to leave.  I 

        22          think if we show them some reasons to stay in 

        23          school -- and that's what I talked about a -- 

        24          addressed a moment ago about teachers being 

        25          aware of -- and making their curriculums 

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                             STATE BOARD OF EDUCATION             63
                                 December 12, 2000
         1          relevant to the student.

         2              GOVERNOR BUSH:  Let's see if there's any 

         3          other -- any other --

         4              MR. CONROY:  Yeah.  I could go on all day.  

         5          I'm sorry.

         6              GOVERNOR BUSH:  I noticed, man.

         7              Any other teachers who'd like to speak?

         8              Come on up, and sign up, and then -- oh, a 

         9          popular teacher.

        10              COMMISSIONER GALLAGHER:  Now, just --

        11              GOVERNOR BUSH:  Just stay focused on the -- 

        12          on the question --

        13              COMMISSIONER GALLAGHER:  Let me just 

        14          mention that one of the things that this Board 

        15          has already done is to redo the teacher 

        16          preparation rules so that new teachers in 

        17          training in college are required to spend at 

        18          least two weeks in a school setting during 

        19          their process.  That's a minimum. 

        20              And so that issue is sort of behind us.  

        21          The issue we're talking about here is, the 

        22          university -- university and college 

        23          professors, how much time should they spend 

        24          back in the K through 12 system.  That's the 

        25          issue that we'd like to hear about.

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                                 December 12, 2000
         1              MS. MILLER:  Okay.  My name is Ellen --  

         2              GOVERNOR BUSH:  These are --

         3              MS. MILLER:  -- Miller -- 

         4              GOVERNOR BUSH:  -- the teachers teaching 

         5          the teachers.

         6              MS. MILLER:  -- and this is my 25th year in 

         7          the state of Florida as a certified teacher. 

         8              And I have to tell you that I think you 

         9          need a little more time.  There are plenty of 

        10          people who spend three years teaching school, 

        11          and suddenly they're administrators.  And they 

        12          move on up the scale, suddenly they're in the 

        13          junior college, and they get their Ph.D., and 

        14          they're in college.  And they're teaching other 

        15          people how to be teachers, and they don't have 

        16          the faintest idea what it is to be a teacher. 

        17              You cannot spend three years in a 

        18          classroom, and be an expert.  I've been there 

        19          25 years, and I am no expert.  You've got to 

        20          have more time, and you've got to have courses 

        21          that help build up to that. 

        22              You've got to understand today's children 

        23          are not the same as they were 20 years ago.  

        24          You've got to have an understanding of what's 

        25          going on in the family, because it comes to the 

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                             STATE BOARD OF EDUCATION             65
                                 December 12, 2000
         1          classroom. 

         2              And if you're going to teach someone how to 

         3          handle 35 children -- and I don't care what age 

         4          they are, they're still children.  If you're 

         5          going to teach 35 children, you've got to have 

         6          a background yourself in how things run and why 

         7          they go that way. 

         8              You've got to have an understanding of 

         9          people, why they think that way.  You've got to 

        10          have an understanding that children are going 

        11          to do childish things, and they're going to 

        12          expect punishment.  And you've got to know how 

        13          to give out that punishment. 

        14              And it's got to be a fair punishment.  And 

        15          it's got to be a teaching punishment.  You 

        16          cannot spend two weeks in a classroom, and then 

        17          turn around and teach someone else to spend 

        18          years there. 

        19              I think you've got to have more -- more 

        20          time, more time personally, not just taking 

        21          courses, but there every day.  And don't come 

        22          in and say, oh, I'll spend a day in here, and 

        23          it'll be a good lesson.  It's the every day in 

        24          and out. 

        25              It's like a marriage.  It's great at the 

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                             STATE BOARD OF EDUCATION             66
                                 December 12, 2000
         1          beginning, but it's the every day doing the 

         2          things that are boring, the wash that has to be 

         3          done, the dishes that have to be done.  Well, 

         4          that's what it is in the classroom. 

         5              I've got to take attendance, and I've got 

         6          to listen why so-and-so wasn't here for the 

         7          test.  And if you don't understand how children 

         8          work, you're not going to make it, and you 

         9          can't teach others how to make it.

        10              COMMISSIONER GALLAGHER:  Let me just 

        11          straighten out that it's 10 to 14 weeks that we 

        12          have for teachers in training in the college, 

        13          not two.  And the issue here is what -- is 

        14          three days per year --

        15              MS. MILLER:  No.

        16              COMMISSIONER GALLAGHER:  -- for teachers --

        17              GOVERNOR BUSH:  For professors.

        18              COMMISSIONER GALLAGHER:  -- professors that 

        19          are teaching teachers.

        20              MS. MILLER:  No. 

        21              GOVERNOR BUSH:  And you said --

        22              MS. MILLER:  You've got to --

        23              GOVERNOR BUSH:  -- not enough.

        24              MS. MILLER:  -- have more.  You've got to 

        25          have more.

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                                 December 12, 2000
         1              COMMISSIONER GALLAGHER:  How much time 

         2          should there be? 

         3              MS. MILLER:  That I couldn't necessarily 

         4          answer, because I don't necessarily know the 

         5          things that they're taking in those three days.  

         6          I think it would depend on the kind of courses 

         7          that are being offered.

         8              COMMISSIONER GALLAGHER:  Well, those 

         9          three days are three days that a professor is  

        10          to go spend in a K through 12 classroom.

        11              MS. MILLER:  You're not going to learn 

        12          anything in three days.  I can tell you that 

        13          right now.  Because the teacher will say, kids, 

        14          be on your best behavior.  And kids'll do that.  

        15          They're good for you doing that. 

        16              But what do you learn?  If you're not there 

        17          every day doing all the things --

        18              COMMISSIONER GALLAGHER:  Well now, we can't 

        19          have them there every day, because --

        20              MS. MILLER:  No.  But you've --

        21              COMMISSIONER GALLAGHER:  -- teaching 

        22          teachers.

        23              MS. MILLER:  -- got to be -- you've got to 

        24          be there long enough so that you have an idea 

        25          of what's going on.  And three days isn't 

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         1          going -- would someone sitting in your job 

         2          three days know what to do as 

         3          Educationer Commission (sic)?

         4              COMMISSIONER GALLAGHER:  They'd probably do  

         5          better than I do in some --

         6              MS. MILLER:  No.  You need more than 

         7          three days.  And -- and you've got to have some 

         8          practicality involved in there.  And it's not 

         9          just three good days.  You've got to have off 

        10          days as well, because that's how you learn how 

        11          to handle things.

        12              COMMISSIONER GALLAGHER:  But how do you -- 

        13          how do you effect that?

        14              MS. MILLER:  I think you need to -- to 

        15          offer more days and more training on site.  

        16          And -- and I think you need to get a variety of 

        17          classrooms and a variety of ages and a variety 

        18          of neighborhoods. 

        19              And I think you need to be there on a 

        20          regular basis so that you know what's going on 

        21          from this day to this day, and not just pop in 

        22          and spend the day and have a good time --

        23              COMMISSIONER GALLAGHER:  Now, this is for 

        24          the teachers that are --

        25              MS. MILLER:  Yes, I --

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                                 December 12, 2000
         1              COMMISSIONER GALLAGHER:  -- teaching 

         2          teachers.

         3              MS. MILLER:  -- understand that. 

         4              But you -- you can't teach if you haven't 

         5          been there.

         6              COMMISSIONER GALLAGHER:  Well, you're -- 

         7          I'm agreeing with you.  My problem is that we 

         8          also have the -- the colleges, and Dr. Proctor 

         9          is President of a college, and he's worried 

        10          about having his teachers in there teaching 

        11          teachers.  I'm worried --

        12              MS. MILLER:  Well --

        13              COMMISSIONER GALLAGHER:  -- about --

        14              MS. MILLER:  -- let me ask you --

        15              GOVERNOR BUSH:  I'll tell you what, in 

        16          Dr. Proctor's case, those teachers teach a lot.  

        17          They teach longer hours.  They're on task a lot 

        18          longer than -- than the --

        19              COMMISSIONER GALLAGHER:  Yeah.  But 

        20          that's -- 

        21              GOVERNOR BUSH:  -- I don't want to be too 

        22          controversial here.  That's kind of my nature. 

        23              But we all look maybe at the productivity 

        24          of professors in our university system.  And 

        25          maybe they can -- don't have to take away from 

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                                 December 12, 2000
         1          classroom education and expand the amount of 

         2          time that they -- that we pay them --

         3              COMMISSIONER GALLAGHER:  You know -- 

         4              GOVERNOR BUSH:  -- and we pay them a pretty 

         5          good wage -- they don't -- if you check the 

         6          number of hours they work, it's a little less 

         7          than what State workers work, Commissioner, 

         8          and --

         9              COMMISSIONER GALLAGHER:  Maybe you should 

        10          have a difference in how much they're teaching, 

        11          compared to how much they spend in -- spend in 

        12          a classroom.

        13              MS. MILLER:  I think so.  You want quality, 

        14          you've got to go get them.

        15              GOVERNOR BUSH:  Maybe they should work the 

        16          same number of hours as classroom teachers in 

        17          Brevard County.

        18              MS. MILLER:  I'm there 8 hours.  

        19          Eight hours every day.

        20              Thank you.

        21              COMMISSIONER GALLAGHER:  Thank you.

        22              GOVERNOR BUSH:  Thank you. 

        23              MR. BRADLEY:  My name is Don Bradley.  I'm 

        24          a -- a high school teacher in Vero Beach, is 

        25          Indian River County.  And --

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         1              GOVERNOR BUSH:  Which high school? 

         2              MR. BRADLEY:  Vero Beach High School.

         3              GOVERNOR BUSH:  A little bit more.

         4              MR. BRADLEY:  Vero Beach High School.

         5              GOVERNOR BUSH:  Great high school.

         6              MR. BRADLEY:  And I really can't say it 

         7          much better than the lady that preceded me.  

         8          She -- she hit it right on the head. 

         9              One thing I'd like to say, I know it's not 

        10          talking about the brand new teachers, but if 

        11          you want to get teachers that we're going to 

        12          keep, I think we need to increase the starting 

        13          salary for those teachers. 

        14              I know it's difficult to find money in 

        15          there, but I think that's very important, if we 

        16          can start that. 

        17              And the more time a beginning teacher could 

        18          stay in the classroom, the better.  Because 

        19          it's -- it's -- it's a lot different from 

        20          what -- what it is versus what they learn in 

        21          the college. 

        22              And the -- the fact that the professors 

        23          would go there and spend the -- the time they 

        24          would, that would be a big benefit, I think -- 

        25              GOVERNOR BUSH:  Great.

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         1              MR. BRADLEY:  -- because then they would 

         2          understand what's going on.

         3              COMMISSIONER GALLAGHER:  How much time? 

         4              MR. BRADLEY:  I -- I would think a week.  

         5          I think a week.  That would be fine. 

         6              And a full week.  Start from the beginning 

         7          to the end, and then they see what the whole 

         8          school week is.

         9              COMMISSIONER GALLAGHER:  See, we went 

        10          through some --

        11              MR. BRADLEY:  Let me see.  You said, what, 

        12          two weeks? 

        13              COMMISSIONER GALLAGHER:  Well, we --

        14              GOVERNOR BUSH:  No.

        15              COMMISSIONER GALLAGHER:  -- we -- no.  The 

        16          teachers, we -- I started off with a pretty big 

        17          number. 

        18              But in -- in negotiating back and forth 

        19          with the Standards Commission, we ended up 

        20          with -- with -- I really wanted three 

        21          consecutive days. 

        22              And -- and their argument was, well, 

        23          you know, they have a teaching schedule on 

        24          Monday, Wednesday, and Friday, or Tuesday and 

        25          Thursday, and, therefore, if you do three 

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                                 December 12, 2000
         1          consecutive days, they're going to find it  

         2          necessary to be out of class. 

         3              So that's sort of some of the discussion 

         4          that --

         5              MR. BRADLEY:  Well, it's --

         6              COMMISSIONER GALLAGHER:  -- took place.

         7              MR. BRADLEY:  -- it's like if you want to 

         8          get an idea of what's going on, if you spent 

         9          one week with the school, and -- and that -- by 

        10          that time, you would learn what's going on. 

        11              And the more they can pass on to new 

        12          teachers, the better.  And the longer a new 

        13          teacher can stay in a school system so they'll 

        14          really find out if they want to teach --

        15              COMMISSIONER GALLAGHER:  Thank you.

        16              GOVERNOR BUSH:  Yeah. 

        17              General?

        18              ATTORNEY GENERAL BUTTERWORTH:  Sir, how 

        19          long have you been teaching? 

        20              MR. BRADLEY:  Well, I --

        21              ATTORNEY GENERAL BUTTERWORTH:  You don't 

        22          really look like the --

        23              MR. BRADLEY:  Oh.  I -- well, I'm retired 

        24          military. 

        25              I put 20 years in the United States 

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                                 December 12, 2000
         1          Air Force, and then I started teaching in 1985.  

         2          So it's 15 years.

         3              COMMISSIONER GALLAGHER:  Soldiers to 

         4          scholars.

         5              ATTORNEY GENERAL BUTTERWORTH:  Soldiers to 

         6          scholars. 

         7              If you have 15 years, do you think maybe if 

         8          we agree with the Commissioner that it should 

         9          be three straight days, that maybe the -- the 

        10          teachers would -- the future teachers would -- 

        11          would benefit by having you switching place as 

        12          a professor, and maybe have teachers that are 

        13          actually teaching, teach -- teach the new 

        14          teachers? 

        15              MR. BRADLEY:  That's -- that's a 

        16          possibility, yes. 

        17              Now you're going to get me started on 

        18          something else. 

        19              I -- I -- I think -- I think -- see, the 

        20          society today, everybody's working.  The 

        21          teachers are working extra jobs, they can't put 

        22          in the extra time that they have for the 

        23          students. 

        24              The children are working so they can have 

        25          cars.  Everybody's working.  It's not like it 

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                                 December 12, 2000
         1          used to be when we were -- when I was much 

         2          younger. 

         3              My dad worked, and that was it, and 

         4          everybody stayed home.  But it was a different 

         5          school system then.  But things change, so we 

         6          have to adapt to that.

         7              GOVERNOR BUSH:  Thank you very much.

         8              MR. BRADLEY:  Thank you.

         9              GOVERNOR BUSH:  Who's next?

        10              MR. RICHMOND:  Excuse me, Governor, Cabinet 

        11          members. 

        12              I just wanted to ask if --

        13              GOVERNOR BUSH:  What's your name?

        14              MR. RICHMOND:  I'm Richard Richmond.

        15              I just wanted to ask if public comment 

        16          would be accepted this morning on other issues 

        17          that are facing the great State of Florida 

        18          today, and in the oncoming days of this week? 

        19              GOVERNOR BUSH:  No.

        20              MR. RICHMOND:  We will have no opportunity 

        21          to speak on --

        22              GOVERNOR BUSH:  You can talk --

        23              MR. RICHMOND:  -- those issues --

        24              GOVERNOR BUSH:  -- to me after -- when 

        25          we're finished.  But we're going to finish our 

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                                 December 12, 2000
         1          agenda here today.

         2              MR. RICHMOND:  Is that the normal process 

         3          in the state --

         4              GOVERNOR BUSH:  Yeah.

         5              MR. RICHMOND:  -- of Florida Cabinet 

         6          meetings, that no public input?  You just 

         7          accepted public input --

         8              GOVERNOR BUSH:  On.

         9              MR. RICHMOND:  -- on this issue.  We 

        10          certainly have other great issues before us.

        11              GOVERNOR BUSH:  We have great issues all 

        12          over the place, no question about it.  But we 

        13          have an agenda to complete, and that's what 

        14          we're going to do.

        15              MR. RICHMOND:  At the end of that agenda, 

        16          will we have the opportunity to speak to the 

        17          Cabinet, sir?

        18              GOVERNOR BUSH:  We're going to complete the 

        19          meeting, and then we're going over to the park, 

        20          and I'd be happy to have you tell me what's on 

        21          your mind --

        22              MR. RICHMOND:  Well, I just thought it 

        23          would be nice to get it officially on the 

        24          record, sir.  A number of issues I'm sure a 

        25          number of people in the state of Florida --

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                                 December 12, 2000
         1              GOVERNOR BUSH:  That's not -- 

         2              MR. RICHMOND:  -- have important issues.

         3              GOVERNOR BUSH:  -- how it's ever been done.  

         4          It hasn't been done that way.  I'm a rookie 

         5          Governor, so maybe I could -- 

         6              ATTORNEY GENERAL BUTTERWORTH:  Never been 

         7          that way.

         8              GOVERNOR BUSH:  Never been done that way.

         9              MR. RICHMOND:  Okay.  Thank you, Governor.

        10              GOVERNOR BUSH:  Can you sign in?

        11              MR. RICHMOND:  Yes.

        12              DR. PROCTOR:  Mr. Governor --

        13              GOVERNOR BUSH:  Yes, Mr. -- 

        14              DR. PROCTOR:  -- we'd like to -- 

        15              GOVERNOR BUSH:  -- President.

        16              DR. PROCTOR:  -- bring us back to the -- to 

        17          the issue at hand.

        18              I'm not going to stand before you and say 

        19          that three days is infinitely better than two, 

        20          or that much worse than four. 

        21              I think we could all talk about five, six, 

        22          seven, eight, whatever you want.

        23              I would remind you though that the 

        24          professors who teach teachers are not isolated 

        25          somewhere in a classroom.  In my case, one of 

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                                 December 12, 2000
         1          them is -- heads up the Special Olympics 

         2          program for the county.  She works with 

         3          students constantly. 

         4              Another one volunteers over at the Florida 

         5          School for the Deaf and Blind, and works 

         6          constantly with students.

         7              All of them supervise interns in 

         8          classrooms.  So I just want to dispel the 

         9          notion that they're not in classrooms.

        10              If the Cabinet in its wisdom says 

        11          five days, we'll accommodate five days.  I just 

        12          ask you to bear in mind that every day that we 

        13          put them in a school, we take them out of a 

        14          college classroom.  And that presents a 

        15          problem. 

        16              And it's also not as if these people 

        17          haven't taught before.  Virtually every one of 

        18          them has come up through the ranks of teacher. 

        19              I would also suggest that a number of our 

        20          teachers are part-time teachers, and that's by 

        21          deliberate design. 

        22              We bring people in part-time to teach in 

        23          certain fields, because they are in daily 

        24          contact.  That's particularly true in the field 

        25          of exceptional child education where the laws 

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                                 December 12, 2000
         1          and the theories in practice are changing 

         2          almost daily.

         3              And so it's very helpful to bring people 

         4          out of that classroom.

         5              I just ask you to bear those thoughts in 

         6          mind.

         7              There is two other factors that weigh on 

         8          this that I think that a -- a word of 

         9          consideration.  We are speaking about those 

        10          teacher preparation programs that are State 

        11          approved, as distinguished from those that are 

        12          not State approved.

        13              Our State approved programs supply probably 

        14          less than 50 percent of our beginning -- new 

        15          teachers.  And each one of those teachers is 

        16          supervised through an extensive internship by a 

        17          practicing teacher, and must pass that 

        18          internship before they're employed.

        19              Now, one of the questions we raised was, in 

        20          the course of developing the rule, how 

        21          satisfied are the school districts with their 

        22          new teachers.  And so we put in there a 

        23          rehiring requirement. 

        24              And 90 percent of the graduates of an 

        25          approved program must be offered rehiring at 

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                                 December 12, 2000
         1          the end of the third year of their teaching. 

         2              So it's not as if some of these matters 

         3          haven't been looked at.

         4              GOVERNOR BUSH:  What -- how do other states 

         5          handle this?  

         6              DR. PROCTOR:  How do other states handle --

         7              GOVERNOR BUSH:  Do you know how other 

         8          states handle the requirements of in-class --

         9              DR. PROCTOR:  To my knowledge -- and I'm 

        10          sure that there may be others -- but to my 

        11          knowledge, I know of no other state that is 

        12          requiring the college professor to go back into 

        13          the classroom. 

        14              There may be others.  I have no knowledge 

        15          of any.

        16              GOVERNOR BUSH:  So we'd be the first in the 

        17          country, is that --

        18              DR. PROCTOR:  I'm not going to claim that 

        19          personally.  I just say, I have no knowledge. 

        20              To my knowledge, we'd be the first.

        21              COMMISSIONER GALLAGHER:  Our 

        22          Standards Commission --

        23              DR. PROCTOR:  But in --

        24              COMMISSIONER GALLAGHER:  -- is different 

        25          than --

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         1              DR. PROCTOR:  -- in the --

         2              COMMISSIONER GALLAGHER:  -- most states.

         3              DR. PROCTOR:  Excuse me, Commissioner.

         4              In the evaluation of our teachers, bear in 

         5          mind that when it came time to prepare a 

         6          State's report card, as prescribed by Title II 

         7          of the Higher Education Act, Florida is 

         8          light years ahead of many states in the 

         9          measurement of its teacher quality from its 

        10          approved program. 

        11              And the research we don't have is what is 

        12          the quality of the teachers to come out of our 

        13          approved programs, as contrasted to those which 

        14          we must get from other sources simply to fill 

        15          out our ranks. 

        16              We don't know that the approved program 

        17          teacher is deficient in any of the areas about 

        18          which we're so concerned.  There may be.

        19              DR. PROCTOR:  One other question.

        20              GOVERNOR BUSH:  Yes.  Go ahead. 

        21              MR. BOUZIANIS:  If I could just make a 

        22          quick comment.

        23              Excuse me, sir.

        24              From Commissioner Gallagher's comments, 

        25          this was an issue that we wrestled with 

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                                 December 12, 2000
         1          consid-- at considerable length.  We went back 

         2          and forth as far as how many numbers -- how 

         3          many days that we should go with. 

         4              I'm going to take my Commission hat off, 

         5          and put my personnel and human resources 

         6          administrator hat on. 

         7              Number one, I want to commend 

         8          Commissioner Gallagher.  We're thrilled about 

         9          having extra resources in our classrooms. 

        10              And I've been accused of being naive 

        11          before, but I hope I'm not naive in making this 

        12          statement.

        13              The key words to me were not less than 

        14          three.  We're excited again about having a pool 

        15          of people that will be in our schools.  And if 

        16          we identified, say, a professor from our 

        17          backyard from UCF that was working with a brand 

        18          new teacher, I would be very hopeful if they 

        19          reached their three-day mark, and the principal 

        20          or the district staff felt like this person 

        21          needs more assistance, and we would like you to 

        22          provide more, that they would not say, nope, 

        23          I've done my three, I'm -- I'm not going to 

        24          come back. 

        25              Because if that -- that does, indeed, 

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                                 December 12, 2000
         1          happen -- I really don't think it would -- but 

         2          I would be one that would be screaming saying, 

         3          wait a minute, this isn't working the way that 

         4          we anticipated. 

         5              So I am hopeful that no matter whatever we 

         6          said, there's no less than, whether it's five, 

         7          seven, eight, that that will not be where it 

         8          stops.  It will simply continue.

         9              So I'm excited about the prospects of 

        10          having extra people in our classroom.  So --

        11              GOVERNOR BUSH:  I was going to ask about -- 

        12          about the enforcement of this.  We pass a lot 

        13          of rules in -- you know, got a lot of numbers 

        14          and -- has anybody ever checked to see if --

        15              COMMISSIONER GALLAGHER:  Well --

        16              GOVERNOR BUSH:  -- actually -- anybody --

        17              COMMISSIONER GALLAGHER:  -- there -- 

        18          there --

        19              GOVERNOR BUSH:  -- actually does --

        20              COMMISSIONER GALLAGHER:  -- there is a 

        21          recommendation -- 

        22              GOVERNOR BUSH:  -- what they're supposed 

        23          to?

        24              COMMISSIONER GALLAGHER:  -- that -- they do 

        25          have a recommendation that the -- well, you can 

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                                 December 12, 2000
         1          tell them the --

         2              DR. PROCTOR:  We place verification 

         3          requirement upon the dean of the records of the 

         4          teacher education program. 

         5              Every five years, the State approved 

         6          program must be reapproved by a team from the 

         7          Department of Education.  When that team comes 

         8          on campus, they will check those verification 

         9          records. 

        10              It will be their responsibility to audit 

        11          those records.

        12              GOVERNOR BUSH:  Very good.

        13              Any other questions or comments? 

        14              TREASURER NELSON:  Governor, what we have 

        15          here is an expression of dissatisfaction with 

        16          the way the system is working. 

        17              You all are seeking to improve that.  We've 

        18          had some contrary points of view. 

        19              I'd like to ask Commissioner Gallagher:  

        20          What would be the viability of making the 

        21          three days consecutive; or in the alternative, 

        22          extending to five consecutive days, which would 

        23          be a week? 

        24              What would that do financially in taking 

        25          the teachers out of the classrooms in the 

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                                 December 12, 2000
         1          colleges of education? 

         2              COMMISSIONER GALLAGHER:  Well, 

         3          Commissioner, you're -- you're sounding like 

         4          where I was a few -- a few weeks ago as this 

         5          issue was coming from the Standards Commission 

         6          as a recommendation to us.

         7              And I finally went along with the 

         8          three days, not because it was my preference, 

         9          but because we're -- we have a -- this is 

        10          really the first time it's been done, and it's 

        11          something that I think is extremely important, 

        12          and I really wanted the Standards Commission to 

        13          be on board with us. 

        14              And they have a lot of teachers, a lot of 

        15          professors, and everybody else involved in it.  

        16          And it was a give and take back and forth to 

        17          get where we are. 

        18              We are the State Board of Education, and we 

        19          can drive the train.  But I was trying to drive 

        20          it in a way which we'd have buy into it.

        21              I had a pretty good feeling how the rest of 

        22          this Board would feel.  And that's why I pushed 

        23          pretty hard, as -- as they will tell you.

        24              The cost and the questions you're asking 

        25          me, I think Dr. Proctor would be best to -- to 

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                                 December 12, 2000
         1          answer those questions.

         2              DR. PROCTOR:  It's -- it's the question, 

         3          Mr. Nelson, if -- if I've got 14 weeks in the 

         4          classroom, and I've got teachers teaching on a 

         5          pretty tight schedule, just think in the past 

         6          few years, we've added 15 hours to the ESOL, 

         7          we've added instructional technology, we've 

         8          added the accomplished practices, we've added 

         9          the Sunshine State Standards, we've added the 

        10          content standards, we've added reasonable 

        11          force, we've added in a new -- a law 

        12          requirement and an ethics code requirement. 

        13              All that must be addressed in the 

        14          pre-service teacher in two years, plus an 

        15          internship which takes that student out of the 

        16          classroom. 

        17              So we really have three semesters, given 

        18          that most of our teachers come from the 

        19          community college system -- a large majority 

        20          do.  We've got three semesters to cover every 

        21          bit of that. 

        22              So when you say take them out of the 

        23          classroom for a week, take one of my professors 

        24          out, it presents a problem.  If the Board says 

        25          do it, we'll do it.  Just as I told you last 

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                                 December 12, 2000
         1          year, we do the new teacher preparation program 

         2          in the summertime if you said do it. 

         3              Do I recommend it?  No. 

         4              World come to an end if it's five days 

         5          instead of three?  No.  We'll get it done. 

         6              But I recommend three.

         7              COMMISSIONER CRAWFORD:  Governor?

         8              GOVERNOR BUSH:  Yes, Commissioner.

         9              COMMISSIONER CRAWFORD:  Thank you.

        10              First I think at -- at the outset, I was a 

        11          little bit alarmed, thinking we were talking 

        12          about the requirements for a teacher before 

        13          they would -- became a teacher.  And I think 

        14          maybe some people in the audience had that same 

        15          impression. 

        16              So I'm pleased that we're -- we're not 

        17          talking about teachers in the classroom, we're 

        18          talking about the teachers of the teachers.

        19              COMMISSIONER GALLAGHER:  Right.

        20              COMMISSIONER CRAWFORD:  So that's -- that's 

        21          certainly a big difference than professors. 

        22              And the fact that the -- the rule reads not 

        23          less than three gives even -- gives me more 

        24          comfort. 

        25              And I -- I think that the bottom line is 

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                                 December 12, 2000
         1          the -- is the question of the -- the 

         2          qualifications and the proficiencies of the 

         3          professors that are doing the teaching.  And 

         4          that's really up to the deans and the 

         5          presidents of our -- of our colleges and 

         6          universities. 

         7              And so with -- you know, with all that -- 

         8          in -- in mind, probably, you know, this -- this 

         9          rule is still a good -- a step in the right 

        10          direction. 

        11              It may -- may be on the cutting edge of 

        12          what's been done in the country.  So I feel 

        13          fairly comfortable with the recommendation, and 

        14          I -- I would move the -- the recommendation.

        15              COMPTROLLER MILLIGAN:  Just let me 

        16          understand.  This is a report that we --

        17              COMMISSIONER GALLAGHER:  Accepting the --

        18              COMPTROLLER MILLIGAN:  -- are accepting.  

        19          This is not --

        20              COMMISSIONER GALLAGHER:  -- report.

        21              COMPTROLLER MILLIGAN:  -- a rule.  A 

        22          rule --

        23              COMMISSIONER GALLAGHER:  -- turn into rule.

        24              COMPTROLLER MILLIGAN:  -- has yet to come 

        25          to us.

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                                 December 12, 2000
         1              COMMISSIONER GALLAGHER:  Right.  But this 

         2          is a recommendation from the 

         3          Standards Commission.  It will turn into a 

         4          rule, and be brought back to us as a rule for 

         5          teacher prep.

         6              So we're really --

         7              GOVERNOR BUSH:  We're accepting the -- 

         8              COMMISSIONER GALLAGHER:  -- we're early 

         9          accepting, and we're probably trying to tell 

        10          them that we don't really like what we're 

        11          accepting. 

        12              But they'll -- they'll -- they're taking 

        13          notes.  It wasn't just me.  They're hearing 

        14          from others, too, and that's a good thing.

        15              GOVERNOR BUSH:  I would add that -- I mean, 

        16          they are -- just listening to the teachers 

        17          that -- that spoke, there's a -- a great 

        18          opportunity here. 

        19              The universities have accepted the 

        20          challenge to reach down into the 

        21          underperforming high schools of our state.  All 

        22          of them now have done it, and they're -- 

        23          they're engaged in very creative ways to 

        24          identify the achieving students that may be in 

        25          underperforming schools that, as Matt 

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                                 December 12, 2000
         1          mentioned, may not be -- may not have been told 

         2          that they're qualified for a scholarship to be 

         3          able to go to -- to a university or community 

         4          college, even for that matter.

         5              So all the universities are engaged in 

         6          this.  And one of the solutions might be to see 

         7          professors take their entire class to a 

         8          particular school, and share the experiences 

         9          of -- of teaching in -- in a -- in a hands-on 

        10          kind of way, and help the school along the way. 

        11              This is -- there are ways to do this in a 

        12          creative fashion where -- where the students in 

        13          the high schools also benefit. 

        14              And I hope that the people don't view these 

        15          things, well, here's another rule from 

        16          the Board of Education, rather than look at it 

        17          as a great opportunity to assure the children 

        18          who really have not been given a chance in our 

        19          state -- and a whole lot of them haven't -- now 

        20          are being given that chance.

        21              And the college board venture that we have 

        22          with -- with the State of Florida right now is 

        23          a one of a kind thing, and it is exciting to 

        24          see what's going on in their first year. 

        25              And I just -- there are a lot of ways that 

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                                 December 12, 2000
         1          we can creatively deal with this, without 

         2          having it be kind of a command and control rule 

         3          thing that's put in some file for a five-year 

         4          certification five years later. 

         5              Does that make sense? 

         6              MR. BOUZIANIS:  Yes, sir.  Very much so.

         7              GOVERNOR BUSH:  So what do we -- we don't 

         8          have to do anything.

         9              COMMISSIONER GALLAGHER:  Accept the report.

        10              GOVERNOR BUSH:  We're accepting it.

        11              All in favor of accepting their report, say 

        12          aye.

        13              THE CABINET:  Aye.

        14              GOVERNOR BUSH:  Thank you.

        15              DR. PROCTOR:  Thank you.

        16              MR. BOUZIANIS:  Thank you.

        17              GOVERNOR BUSH:  We appreciate y'all working 

        18          hard on behalf of the State.  I know you have 

        19          other things to do.

        20              COMMISSIONER GALLAGHER:  There are -- just 

        21          for -- there are two major commissions that 

        22          exist within the Department of Education.  One 

        23          is the Standards Commission, which includes the 

        24          24 members they talked about, which basically 

        25          sets the standards for the teaching profession.

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                                 December 12, 2000
         1              The other is the Practices Commission where 

         2          we may hear a little bit about that, because at 

         3          the end, there's some people being appointed to 

         4          it. 

         5              They basically get into discipline of 

         6          teachers.  And so there are those two 

         7          commissions that exist within the Department of 

         8          Education.

         9              Wayne.

        10              MR. PIERSON:  Any changes that would occur 

        11          based on that report would go through the 

        12          rulemaking process.  So there'll be a lot of 

        13          time for public input.

        14              GOVERNOR BUSH:  Okay. 

        15              MR. PIERSON:  Item 3 on the agenda is 

        16          identification of high priority school 

        17          locations for use and implementation of the 

        18          teacher forgivable loan program.

        19              COMMISSIONER GALLAGHER:  Motion.

        20              COMMISSIONER CRAWFORD:  Second.

        21              (Treasurer Nelson exited the room.)

        22              GOVERNOR BUSH:  Moved and seconded.

        23              Without objection, it's approved.

        24              MR. PIERSON:  Item 4 is the identification 

        25          of critical teacher shortage areas.

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                                 December 12, 2000
         1              COMMISSIONER GALLAGHER:  Motion on 4.

         2              COMMISSIONER CRAWFORD:  Second.

         3              GOVERNOR BUSH:  Do you want to give us a 

         4          brief run-down on where they are for people 

         5          that are standing, that we do have --

         6              MR. PIERSON:  Yes, sir, I will.

         7              GOVERNOR BUSH:  -- increasing challenges as 

         8          it relates to teacher shortages?

         9              MR. PIERSON:  They're middle and secondary 

        10          level mathematics, middle and secondary level 

        11          science, exceptional education programs serving 

        12          students with disabilities.  That's all the 

        13          exceptional education programs for students 

        14          with disabilities.

        15              English for speakers of other languages, 

        16          technology education, and this -- those were 

        17          all from prior year also. 

        18              Added this year was foreign languages.

        19              GOVERNOR BUSH:  We estimate that -- just 

        20          for people in the audience -- we estimate that 

        21          there are going to be 10,000 -- a need for 

        22          10,000 teachers a year. 

        23              And that would be because of retirements, 

        24          growth in our student population, and people 

        25          leaving in mid-- mid-career, or early in their 

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                                 December 12, 2000
         1          career. 

         2              In fact, I think there's a significant 

         3          percentage of teachers that leave in their 

         4          third or fourth year. 

         5              And so 10,000 over the next -- 10,000 a 

         6          year for the next ten years.

         7              COMMISSIONER GALLAGHER:  That's a year.

         8              GOVERNOR BUSH:  So if we're talking about 

         9          100,000 teachers, it's a huge challenge for our 

        10          state.  And my guess is that this list will 

        11          become -- will expand to all -- basically to -- 

        12          to all forms of teaching in our public schools. 

        13              And this next legislative session, I hope 

        14          the Legislature will accept some 

        15          recommendations that -- that we'll be making, 

        16          and others will, about how to deal with us on a 

        17          long-term basis.

        18              COMMISSIONER GALLAGHER:  And that -- 

        19          that -- that 10,000 is what's needed for next 

        20          year. 

        21              And we do see that it will be increasing 

        22          quite dramatically to twelve to 

        23          fifteen thousand, because many of our 

        24          teachers -- a large percentage of our teachers 

        25          are in their fifty-five -- fifty-five years 

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                                 December 12, 2000
         1          old, and eligible for retirement, and could 

         2          retire and make that -- there's a big bubble 

         3          there actually that we're facing over the next 

         4          five years.

         5              GOVERNOR BUSH:  So one of the big issues is 

         6          how do we retain teachers; how do we recruit 

         7          teachers from other professions, like the 

         8          military, General; and how do we attract new 

         9          teachers, people to be excited about teaching 

        10          at an early age. 

        11              And, you know, higher pay is going to be -- 

        12          someone mentioned that.  Obviously that's -- 

        13          that's got to be the -- the first thing.  But 

        14          there's many other strategies that need to be 

        15          developed as well.

        16              ATTORNEY GENERAL BUTTERWORTH:  Governor, 

        17          how many teachers do we graduate in our 

        18          universities and colleges? 

        19              COMMISSIONER GALLAGHER:  How many what, 

        20          teachers --

        21              ATTORNEY GENERAL BUTTERWORTH:  Teacher 

        22          graduates.

        23              GOVERNOR BUSH:  About half of what we need.

        24              COMMISSIONER GALLAGHER:  About 600 and -- 

        25          something like that, to 5,000.

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                                 December 12, 2000
         1              GOVERNOR BUSH:  I thought it was about half 

         2          of what we needed.

         3              COMMISSIONER GALLAGHER:  So that's close to 

         4          it.

         5              GOVERNOR BUSH:  We import a lot of teachers 

         6          still in a very competitive field.  We import 

         7          teachers from other parts of the country.

         8              COMMISSIONER GALLAGHER:  We actually go -- 

         9          we sent up recruiting missions up into Boston 

        10          and other places.  We have a huge teach-in in 

        11          St. Petersburg where we invite graduates to 

        12          come to get a job, and all the counties come 

        13          and recruit.

        14              MR. PIERSON:  Did -- did we have a motion 

        15          to approve on that?

        16              GOVERNOR BUSH:  I think we already did, 

        17          didn't we?

        18              COMMISSIONER GALLAGHER:  I'll move, just 

        19          to --

        20              COMMISSIONER CRAWFORD:  Second.

        21              GOVERNOR BUSH:  It's been moved and 

        22          seconded.

        23              Without objection, it's approved.

        24              Item 5.

        25              MR. PIERSON:  Item 5 is the 2001-2002 

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                                 December 12, 2000
         1          adult fee schedule required by statute.

         2              COMMISSIONER GALLAGHER:  Motion.

         3              COMMISSIONER CRAWFORD:  Second.

         4              GOVERNOR BUSH:  Moved and seconded.

         5              Without objection, it's approved.

         6              MR. PIERSON:  Items 6 through 18 are all 

         7          State Board and nonpublic career ed rules. 

         8              Would you care to do those as a block, or 

         9          would you rather do them invidi--

        10              COMMISSIONER GALLAGHER:  Motion on 6 

        11          through 18.

        12              COMMISSIONER CRAWFORD:  And second.

        13              GOVERNOR BUSH:  Moved and seconded.

        14              Without objection, it's approved.

        15              MR. PIERSON:  Item 19 is a repeal of 

        16          Rule 6H-1.046, Florida Community College 

        17          Distance Learning Consortium. 

        18              COMMISSIONER GALLAGHER:  Motion.

        19              MR. PIERSON:  The rule is being repealed 

        20          because it's -- it's 120.  It's a --

        21              GOVERNOR BUSH:  Because it's what?

        22              What's a 120? 

        23              COMMISSIONER GALLAGHER:  Because the 

        24          Joint -- Joint Administrative Procedures 

        25          Commission says that it fails to comply with 

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                                 December 12, 2000
         1          legislative record.

         2              MR. PIERSON:  Rules of procedure, which 

         3          aren't --

         4              GOVERNOR BUSH:  Thank you.

         5              MR. PIERSON:  -- described -- 

         6              GOVERNOR BUSH:  Just wanted to -- still 

         7          fighting hard for English.

         8              Is there a motion? 

         9              I'm sorry? 

        10              COMMISSIONER CRAWFORD:  Second.

        11              GOVERNOR BUSH:  Second.

        12              Moved and seconded. 

        13              Without objection, it's approved.

        14              MR. PIERSON:  Item 20, appointments to the 

        15          Education Standards Commission, 

        16          Thomas E. Lynch, and Dr. Wesley Little.

        17              COMMISSIONER GALLAGHER:  Motion.

        18              COMMISSIONER CRAWFORD:  Second.

        19              GOVERNOR BUSH:  Moved and seconded.

        20              Without objection, it's approved.

        21              MR. PIERSON:  Item 21, appointment to the 

        22          Education Practices Commission, 

        23          Kimberly Pinsky.

        24              COMMISSIONER GALLAGHER:  Motion.

        25              COMMISSIONER CRAWFORD:  Second.

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                                 December 12, 2000
         1              GOVERNOR BUSH:  Moved and seconded.

         2              Without objection, it's approved.

         3              MR. PIERSON:  Thank you.

         4              GOVERNOR BUSH:  Thank you. 

         5              (The State Board of Education Agenda was 

         6          concluded.)

         7                              *   *   *



















                        ACCURATE STENOTYPE REPORTERS, INC.

                                 December 12, 2000
         1              GOVERNOR BUSH:  Board of Trustees. 

         2              MR. STRUHS:  Good morning, gentlemen, and 

         3          Madam Secretary. 

         4              By way of introduction, my name is 

         5          David Struhs, and I'm the Secretary of the 

         6          Florida Department of Environmental Protection. 

         7              And I have probably one of the very best 

         8          jobs in -- in Florida State government.  I work 

         9          with some very fine public servants. 

        10              Our job is to keep the air and the water 

        11          clean and safe.  And we do that as well as any 

        12          state, and probably better than most.

        13              Our jobs are -- are basically divided into 

        14          two categories, our regulatory programs, in 

        15          which case we operate as an executive agency 

        16          reporting directly to the Governor. 

        17              And then we have our conservation programs.  

        18          And they involve the acquisition and surplusing 

        19          of conservation and other lands. 

        20              In that case, we operate as staff to the 

        21          Board of Trustees, and that is what brings us 

        22          here this morning.

        23              I would like to speak just very quickly 

        24          though about one of our regulatory 

        25          responsibilities, given the fact that 

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                                 December 12, 2000
         1          Senator Nelson and Governor Bush both talked 

         2          about NASA this morning. 

         3              We have a District office in Orlando, and 

         4          they have been working very closely with NASA 

         5          these last several months. 

         6              And I am pleased to report that just within 

         7          a few weeks, we will have the NASA facility at 

         8          Cape Canaveral doing 100 percent electronic 

         9          reporting of all their environmental data to 

        10          the State of Florida.  This is a major 

        11          breakthrough. 

        12              This -- this is -- this fits the bill in 

        13          terms of more protection, with less process, at 

        14          a lower cost.  One of the things it will do is 

        15          it will allow us to do a better job of 

        16          protecting the environment of the activities 

        17          that go on on the Cape, and it lowers the cost 

        18          to NASA. 

        19              And one of the reasons we do that, quite 

        20          frankly, is because it's part of our long-term 

        21          strategy to make sure that the space industry 

        22          stays put in Florida. 

        23              It gives Florida a competitive edge to have 

        24          a rational regulatory system.  So we're very 

        25          proud of that.

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                                 December 12, 2000
         1              This morning I have a very able assistant 

         2          in the form of Alexius Williams, who is a 

         3          scholar at the Seminole Community College, and 

         4          has been involved the last four years in the 

         5          Take Stock With Children Program, which is part 

         6          of Governor Bush's mentoring initiative. 

         7              And she has done a remarkable job in 

         8          high school, and is now maintaining very good 

         9          grades at the community college. 

        10              One of the reasons that we have selected 

        11          Alexius is because a number of months ago, she 

        12          wrote an essay, and submitted it, nominating 

        13          her mentor, Carlyn Kowalsky, who is here with 

        14          us today, as being a very special person in her 

        15          life. 

        16              (Commissioner Gallagher exited the room.)

        17              MR. STRUHS:  And Alexius's essay won first 

        18          place.  And what that meant was 

        19          Carlyn Kowalsky --

        20              You can stand, please.

        21              -- is -- has been recognized as the 

        22          outstanding mentor in all of the United States 

        23          of America.

        24              GOVERNOR BUSH:  Wow. 

        25              (Applause.)

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                                 December 12, 2000
         1              MR. STRUHS:  Carlyn and -- and Alexius have 

         2          had a relationship -- they've had a 

         3          relationship that has lasted three years of 

         4          high school, and now in -- in the fourth year 

         5          in her first year at the community college. 

         6              As a result of her essay, Alexius won a 

         7          $1,000 scholarship, and they traveled to 

         8          Washington for some well deserved recognition.

         9              I would also like to point out that Carlyn 

        10          is also the Assistant General Counsel for 

        11          Florida Water Services, which is a private 

        12          company which provides good, clean, public 

        13          water supply, and is probably the largest 

        14          private water supplier in the state of Florida.  

        15          And we regulate them, and they do a fine job 

        16          here in the state of Florida.

        17              (Commissioner Gallagher entered the room.)

        18              MR. STRUHS:  So with that, I'm going to 

        19          turn over the agenda portion of this to 

        20          Alexius --

        21              GOVERNOR BUSH:  She's going to read the --

        22              Now I've got to hear the essay. 

        23              Do you have it? 

        24              MS. WILLIAMS:  No.

        25              GOVERNOR BUSH:  You're going to e-mail it 

                        ACCURATE STENOTYPE REPORTERS, INC.

                                 December 12, 2000
         1          to me, right? 

         2              MS. WILLIAMS:  Okay.

         3              MR. STRUHS:  But we're going to work 

         4          together in getting through this agenda, 

         5          Governor.

         6              GOVERNOR BUSH:  Okay. 

         7              MS. WILLIAMS:  Good morning, Governor Bush, 

         8          and Cabinet.

         9              All right.  Item 1 concerns the minutes. 

        10              Recommend approval for the minutes from 

        11          October 24th, 2000, of the Cabinet meeting.

        12              COMMISSIONER GALLAGHER:  Motion.

        13              COMMISSIONER CRAWFORD:  Second.

        14              GOVERNOR BUSH:  Moved and seconded.

        15              Without objection, it's approved. 

        16              You're already doing better than Struhs.

        17              COMMISSIONER GALLAGHER:  Yeah.  There's 

        18          definitely another one coming.

        19              MR. STRUHS:  Yeah, I know.

        20              MS. WILLIAMS:  Item 2, City of Miami deed 

        21          restriction compliance termination. 

        22              Recommend approval. 

        23              A determination that a children's museum 

        24          complies with the restrictions -- restrictions 

        25          and reverter contained in a 1949 deed to the 

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                                 December 12, 2000
         1          City of Miami.

         2              I would like to introduce 

         3          Ms. Laura Billberg -- Billberry, the Director 

         4          of Asset Management of the City of Miami.

         5              GOVERNOR BUSH:  Welcome.

         6              MS. BILLBERRY:  Thank you. 

         7              And actually, our City Manager was able to 

         8          make it, so I'm going to turn it over to 

         9          Carlos Gimenez.

        10              GOVERNOR BUSH:  Hey, Carlos.

        11              MR. GIMENEZ:  Hey.  How you doing?

        12              GOVERNOR BUSH:  Where are we going to have 

        13          the Cabinet for a Day in Miami? 

        14              MR. GIMENEZ:  I was about to invite you 

        15          down.  I think we have room, and it'd certainly 

        16          be an honor for us to -- to have you all come 

        17          down to the City of Miami, and -- and honor us 

        18          for the Capital of a Day.

        19              GOVERNOR BUSH:  Any news on your bond 

        20          rating? 

        21              MR. GIMENEZ:  Yes.  Actually I have very 

        22          good news.  Moody's upgraded us yesterday to 

        23          investment grade.  So --

        24              GOVERNOR BUSH:  That's why I asked.

        25              MR. GIMENEZ:  -- the first time in five 

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                                 December 12, 2000
         1          years, we'll be able --

         2              GOVERNOR BUSH:  Congratulations.

         3              MR. GIMENEZ:  -- to have access to the -- 

         4          the debt market.

         5              So thank you very much.

         6              GOVERNOR BUSH:  Some of us are very happy 

         7          about that.

         8              MR. GIMENEZ:  Yeah.  So am I.

         9              Good morning, Mr. Governor, and members of 

        10          the Cabinet. 

        11              Along with myself, I have -- my name is 

        12          Carlos Gimenez, and I'm the City Manager for 

        13          the City of Miami.

        14              Along with myself, I have 

        15          Mr. Alan Potamkin, who's the Chairman of the 

        16          Board of Trustees for the Miami Children's 

        17          Museum; and Debbie Spiegelman, also from the 

        18          Miami Children's Museum; Ms. Laura Billberry, 

        19          which you've met; Arleen Weintraub, Alvia Bonia 

        20          (phonetic); and Meredith Nation (phonetic). 

        21          They're also from the City of Miami. 

        22              We're distributing a booklet which contains 

        23          the site plan for the building, a survey as 

        24          presently underway.  But the total lease area 

        25          will approximately be about 1.5 to 2 acres. 

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                                 December 12, 2000
         1              The site plan has been approved by the 

         2          City Commission, and by the Miami Sports and 

         3          Exhibition Authority.  We are very excited 

         4          about this project. 

         5              We feel it's -- in conjunction with the 

         6          Parrot Jungle and the aviation center, we feel 

         7          that we can transform Watson Island from a 

         8          place where basically you drive through, to 

         9          a -- a world class destination.

        10              And we really would appreciate your support 

        11          on this.

        12              SECRETARY HARRIS:  Governor.

        13              COMMISSIONER GALLAGHER:  Motion to approve.

        14              GOVERNOR BUSH:  Alan, you came all the way 

        15          up here.  I saw some notes.  Do you want to 

        16          speak?

        17              SECRETARY HARRIS:  I just want to -- 

        18              GOVERNOR BUSH:  Those were notes? 

        19              SECRETARY HARRIS:  Governor. 

        20              GOVERNOR BUSH:  Yes.

        21              SECRETARY HARRIS:  I want to brag on the 

        22          Miami Children's Museum. 

        23              It was founded, I guess, in 1983.  And 

        24          this -- both the State and nation have really 

        25          looked to the -- Miami's youth museum as the 

                        ACCURATE STENOTYPE REPORTERS, INC.

                                 December 12, 2000
         1          first ever, and -- and has been a model both 

         2          throughout the State and nationally.  So we're 

         3          really pleased that you're here with us today.

         4              MR. POTAMKIN:  Thank you. 

         5              Yeah.  We're very excited about the 

         6          opportunity.  Myself, Adolpho Henrikes 

         7          (phonetic), and we also brought Norman Bramin 

         8          (phonetic) on board.  Norman and Adolpho are -- 

         9          and I are pretty good at beating up people. 

        10              So we've got the vast majority of our 

        11          monies raised, and we're excited about the 

        12          opportunity for the children of Dade County.

        13              Thank you.

        14              (Commissioner Crawford exited the room.)

        15              GOVERNOR BUSH:  Very good.

        16              TREASURER NELSON:  Where is this going to 

        17          be on Watson Island? 

        18              MR. GIMENEZ:  It's going to be on the 

        19          southern portion of -- of Watson Island.  

        20          Basically in the middle of south -- south 

        21          portion. 

        22              On the north portion, you have 

        23          Parrot Jungle --

        24              TREASURER NELSON:  Right. 

        25              MR. GIMENEZ:  -- is on there.

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                                 December 12, 2000
         1              TREASURER NELSON:  And what's the schedule, 

         2          by the way, for the Parrot Jungle?

         3              MR. GIMENEZ:  The Parrot Jungle took 

         4          possession of the property.  And they should 

         5          open it within two or three years.

         6              GOVERNOR BUSH:  Any other questions, 


         8              COMMISSIONER GALLAGHER:  Motion on Item 2.

         9              GOVERNOR BUSH:  Is there a second?

        10              SECRETARY HARRIS:  Second.

        11              GOVERNOR BUSH:  Moved and seconded. 

        12              Without objection, it's approved.

        13              MR. GIMENEZ:  Thank you, Governor, very 

        14          much.

        15              GOVERNOR BUSH:  Good luck.

        16              MS. BILLBERRY:  Thank you.

        17              MS. WILLIAMS:  Item 3, Lykes Brothers, 

        18          Incorporated, quitclaim deed. 

        19              Recommend approval of a request to 

        20          quitclaim 1.34 acres, more or less, of lands in 

        21          Glades County for Lykes Brothers, Incorporated, 

        22          to correct a legal description error.

        23              ATTORNEY GENERAL BUTTERWORTH:  Motion.

        24              COMMISSIONER GALLAGHER:  Second.

        25              GOVERNOR BUSH:  Moved and seconded.

                        ACCURATE STENOTYPE REPORTERS, INC.

                                 December 12, 2000
         1              Without objection, it's approved.

         2              Maybe, General Butterworth, you could 

         3          explain this Lykes Brother arrangement, since 

         4          it's --

         5              (Secretary Harris exited the room.)

         6              GOVERNOR BUSH:  -- fairly one of a kind, 

         7          and --

         8              ATTORNEY GENERAL BUTTERWORTH:  This is 

         9          one -- one of a kind in the nation.  

        10          Lykes Brothers have -- have owned this land for 

        11          many, many decades.  It's also called -- it's 

        12          commonly known as Fisheating Creek. 

        13              And it's -- this is -- it's about 

        14          9,000 acres.  And it also includes about 

        15          another 30,000 for the State will -- will have 

        16          an easement over it.

        17              (Commissioner Crawford entered the room.)

        18              ATTORNEY GENERAL BUTTERWORTH:  It'll 

        19          protect this river for -- forever. 

        20              And when just a few months ago, we knew 

        21          that we might make some errors a little bit in 

        22          the actual calculations of the acreage, and 

        23          surprised -- we're talking about forty-- over 

        24          41,500 acres, we were -- just missed it by 

        25          1.34 acres.

                        ACCURATE STENOTYPE REPORTERS, INC.

                                 December 12, 2000
         1              I mean, so this was a tremendous purchase 

         2          that the State of Florida made, and 

         3          Fisheating Creek is such an important, integral 

         4          part of the life of the people in Glades County 

         5          and all other surrounding counties. 

         6              In fact, almost everybody years ago who got 

         7          their Boy Scout badge in canoeing in southeast 

         8          Florida, and some in southwest Florida, got it 

         9          at Fisheating Creek.

        10              So it's a very historic place, and it's a 

        11          very good thing for the State of Florida to 

        12          own.

        13              GOVERNOR BUSH:  I just -- just as a -- a 

        14          paid political announcement for the State of 

        15          Florida, and the -- and the Cabinet, we -- we 

        16          have the most aggressive and progressive land 

        17          purchasing program in the country of the 

        18          50 states. 

        19              And it's important in a state like -- we're 

        20          sitting in a high growth area like 

        21          Brevard County where wild Florida surrounds 

        22          you, and we've actually made some pretty 

        23          significant purchases in -- in the western part 

        24          of Brevard County, which are the headwaters for 

        25          the Saint Johns River.

                        ACCURATE STENOTYPE REPORTERS, INC.

                                 December 12, 2000
         1              And there's a lot of -- a lot of activity 

         2          going on to protect the encroachment of growth 

         3          into areas of the state that need to be 

         4          protected. 

         5              And -- and this -- while this is a little 

         6          off the beaten path, this is certainly perhaps 

         7          the greatest best example of protection of our 

         8          heritage and our history. 

         9              It's a 40,000 acre purchase.  And it went 

        10          from lawsuits to settlement.  And 

        11          General Butterworth deserves high praise for 

        12          his involvement in this over, how long --

        13              ATTORNEY GENERAL BUTTERWORTH:  Ten years.

        14              GOVERNOR BUSH:  -- ten years, fifteen --

        15              Ten years.

        16              I thought that might be appropriate to 

        17          mention that.

        18              ATTORNEY GENERAL BUTTERWORTH:  

        19          Commissioner Crawford and I started back 

        20          about -- when he was in the Florida Senate, we 

        21          started --

        22              (Secretary Harris entered the room.)

        23              COMMISSIONER CRAWFORD:  -- the last 

        24          acre-and-a-third.

        25              MS. WILLIAMS:  Item 4 --

                        ACCURATE STENOTYPE REPORTERS, INC.

                                 December 12, 2000
         1              GOVERNOR BUSH:  We approved that already, 

         2          didn't we?

         3              ATTORNEY GENERAL BUTTERWORTH:  Yes, 

         4          Governor.

         5              COMMISSIONER GALLAGHER:  Yes.

         6              GOVERNOR BUSH:  Just missed it.

         7              MS. WILLIAMS:  Item 4, Millender option 

         8          agreement, Apalachicola Bay CARL Project. 

         9              We recommend a deferral.

        10              COMMISSIONER GALLAGHER:  Motion to defer.

        11              COMPTROLLER MILLIGAN:  Second.

        12              GOVERNOR BUSH:  Motion to defer, and a 

        13          second. 

        14              Without objection, it's approved.

        15              MS. WILLIAMS:  Item 5, Gaidry Option 

        16          Agreement, managing agency designation 

        17          management policy statement amendment, 

        18          Pierce Mound Complex, CARL project. 

        19              We recommend an approval.  There are three 

        20          items to this project. 

        21              The first item, an option agreement to 

        22          acquire 1.38 acres within the Pierce Mound 

        23          Complex CARL project from Annegret E. Gaidry 

        24          and Douglas W. Gaidry.

        25              Second, designation of the Department of 

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                                 December 12, 2000
         1          Environmental Protection's Office of Coastal 

         2          and Aquatic Managed Areas as managing agency of 

         3          the original project area and the Department of 

         4          Environmental Projects Division of Recreation 

         5          and Parks as the managing agency of the 10-acre 

         6          addition.

         7              The third, evaluation and amendments of the 

         8          management policy statement for the 

         9          Pierce Mound Complex CARL Project.

        10              There is an interesting story behind this 

        11          purchase I'd like to --

        12              GOVERNOR BUSH:  Much better than David.  

        13          You tell interesting stories.

        14              MR. STRUHS:  She has a good one here.

        15              MS. WILLIAMS:  I have an excerpt I'd like 

        16          to read. 

        17              The owner has reported to the appraiser a 

        18          friendly ghost residing in the subject house.  

        19          The appraiser reported a lack of evidence 

        20          discovered in the Apalachicola market 

        21          associated with the potential impact, either 

        22          positive or negative, of paranormal activities. 

        23              As a result, the appraiser's analysis did 

        24          not reflect any benefit or burden to the 

        25          property associated with any real or perceived 

                        ACCURATE STENOTYPE REPORTERS, INC.

                                 December 12, 2000
         1          paranormal occurrences, in or around this 

         2          project. 

         3              I consider her treatment of this issue 

         4          reasonable.

         5              COMMISSIONER GALLAGHER:  Motion on 5.

         6              MR. STRUHS:  She's good.

         7              COMMISSIONER CRAWFORD:  Second.

         8              GOVERNOR BUSH:  Moved and seconded. 

         9              Without objection, it's approved.

        10              ATTORNEY GENERAL BUTTERWORTH:  Maybe 

        11          David --

        12              GOVERNOR BUSH:  Yes.

        13              SECRETARY HARRIS:  Another part -- another 

        14          part that's exciting about this home is the 

        15          fact that Apalachicola, the City, was actually 

        16          listed on the National Register of Historic 

        17          Places in 1980. 

        18              And our Division Director, Jan Matthews, 

        19          and Dean -- and Dean Roy Hunt from the 

        20          University of Florida, who now works with the 

        21          Division, is working on getting the entire -- 

        22          the -- the City -- the town -- the town plan of 

        23          Apalachicola incorporated as a national 

        24          historic landmark, which will be really 

        25          significant. 

                        ACCURATE STENOTYPE REPORTERS, INC.

                                 December 12, 2000
         1              And -- and there's great enthusiasm for 

         2          this happening because the entire Comp Plan 

         3          would be incorporated.  So we're working -- 

         4          working towards that as well.

         5              ATTORNEY GENERAL BUTTERWORTH:  Governor, 

         6          Secretary Struhs has made it a practice of 

         7          spending a lot of time in our State Parks, and 

         8          in -- and -- and actually staying there.  

         9          I think it'd be a good idea if we required him 

        10          to stay there 15 nights --

        11              GOVERNOR BUSH:  Just check it out.

        12              ATTORNEY GENERAL BUTTERWORTH:  -- and we'll 

        13          find out whether this ghost really does exist 

        14          or not.

        15              GOVERNOR BUSH:  All in favor? 

        16              MR. STRUHS:  Of that motion? 

        17              GOVERNOR BUSH:  Yeah.  As amended.

        18              All right.

        19              MS. WILLIAMS:  Item 6, Austrian Development 

        20          of Florida, Incorporated, Option Agreement, 

        21          Washington Oaks State Gardens. 

        22              We're recommending approval of an option 

        23          agreement to acquire 1.153 acres within the 

        24          Washington Oaks State Gardens, Division of 

        25          Recreation and Parks Addition and Inholdings 

                        ACCURATE STENOTYPE REPORTERS, INC.

                                 December 12, 2000
         1          Project from the Austrian Development of 

         2          Florida, Incorporated. 

         3              This project will complete the 

         4          Oceanfront State Park, which receives 

         5          60,000 visitors annually.

         6              COMMISSIONER GALLAGHER:  Motion.

         7              COMMISSIONER CRAWFORD:  Second.

         8              SECRETARY HARRIS:  Second.

         9              GOVERNOR BUSH:  Moved and seconded.

        10              Without objection, it's approved.

        11              MR. STRUHS:  Thank you very much, Governor, 

        12          and members of the Cabinet.

        13              I know that before you leave the room, that 

        14          America's best mentor, and -- and her scholar 

        15          would appreciate a photograph, if --

        16              GOVERNOR BUSH:  Absolutely. 

        17              Can we do that?

        18              Let's do it right now.

        19              Yeah.  We -- go ahead. 

        20              They're coming up.

        21              ATTORNEY GENERAL BUTTERWORTH:  One thing 

        22          I'd like to mention is that this is the last 

        23          meeting of Commissioner Bill Nelson in this 

        24          setting. 

        25              I just want to say that it's so fitting, 

                        ACCURATE STENOTYPE REPORTERS, INC.

                                 December 12, 2000
         1          Governor, for you to have -- to have picked 

         2          this location to be -- for this particular 

         3          Cabinet meeting. 

         4              And as -- as Treasurer Nelson stated, he 

         5          has -- he grew up in Melbourne, gone to 

         6          Melbourne High School, I graduated the same 

         7          year he did.  So I won't say exactly what year 

         8          that was, but it was a long time ago. 

         9              And he started his public life, not in 1972 

        10          when he was elected to the Florida Legislature.  

        11          He started his public life right here in 

        12          Melbourne. 

        13              I believe you were President of your 

        14          student body, you were -- you were national 

        15          President of the -- of the Key Club, and many 

        16          other activities, and taking the leadership 

        17          role in the Florida Legislature where he served 

        18          three terms on the issues of environment and 

        19          growth management, before it really became one 

        20          of the most important things to do. 

        21              Went on to Congress and served in six terms 

        22          there, serving us very well, making sure we 

        23          didn't get offshore oil drilling, and a lot of 

        24          other bad things. 

        25              And obviously he was leader in NASA, had 

                        ACCURATE STENOTYPE REPORTERS, INC.

                                 December 12, 2000
         1          the opportunity to -- to be an astronaut, 

         2          which -- which is -- when my son came to 

         3          Tallahassee, he says, I don't want to see your 

         4          office, I want to see the office of the 

         5          astronaut.  So --

         6              But -- and then Bill being on the Cabinet, 

         7          and taking over the role for the last six years 

         8          as Insurance Commissioner, has been a -- a 

         9          national leader in -- in bringing the -- the 

        10          large insurance companies to do the right thing 

        11          where they were, in essence, returning files 

        12          where they, in essence, were taking people's 

        13          assets. 

        14              So -- and Commissioner Nelson was there for 

        15          a lead as national battle and getting literally 

        16          billions of dollars and -- and untold millions 

        17          of dollars back to the -- to the people of this 

        18          state and to the country. 

        19              He took a leadership role in -- overseas in 

        20          getting insurance companies to pay the 

        21          holocaust victims. 

        22              And also he's taken a leadership role 

        23          nationally from the standpoint of insurance 

        24          companies that were discriminating based upon a 

        25          raise.

                        ACCURATE STENOTYPE REPORTERS, INC.

                                 December 12, 2000
         1              So it's been a pleasure serving for all of 

         2          us with Commissioner Nelson these six years in 

         3          the Florida Cabinet, and his three decades of 

         4          public life. 

         5              And we know that he is going to be a 

         6          tremendous United States Senator, definitely 

         7          looking after the interests, not only of this 

         8          country, but more specifically the interests of 

         9          the State of Florida.

        10              And, Bill, our -- you and Grace have our -- 

        11          our total admiration, our love, and we wish you 

        12          both the absolute best, and we know you will be 

        13          the absolute best.

        14              TREASURER NELSON:  Thank you. 

        15              (Applause.)

        16              GOVERNOR BUSH:  Do you want to say 

        17          something? 

        18              TREASURER NELSON:  What a privilege it has 

        19          been to work with a collegial body that shows 

        20          you how you can bridge philosophical 

        21          differences, political differences, and 

        22          partisan differences. 

        23              And that's basically the six years that 

        24          I've been a part of this Cabinet.  It operates 

        25          in exactly that fashion.  In a collegial 

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                                 December 12, 2000
         1          fashion, a role model perhaps that would do 

         2          well for the nation to take note of.

         3              So we -- in large part, the training that 

         4          you have given me in this experience, I will 

         5          take with me to Washington now with what 

         6          appears to be a 50/50 Senate, where they're 

         7          going to need a lot of bridge building and a 

         8          lot of bipartisanship, and a lot of 

         9          collegiality.

        10              This, of course, is -- it's -- it's a time 

        11          of enormous memories to come back to my 

        12          hometown as the last Cabinet meeting; and to be 

        13          in a room where I've been in so often as a -- 

        14          as a kid, as a citizen, as a legislator, as a 

        15          Congressman, and now as Insurance Commissioner.  

        16          And what a privilege that is, as well. 

        17              And I would think that my final comments to 

        18          my colleagues on the Cabinet, which I have so 

        19          thoroughly enjoyed your personal friendship and 

        20          relationship, and look forward to it continuing 

        21          over the years as we continue all to serve, 

        22          would be to remember the words that 

        23          Abraham Lincoln said to his people in Illinois 

        24          as he boarded the train to leave to go to 

        25          Washington. 

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                                 December 12, 2000
         1              And he said, may the spirit here among us 

         2          that goes with me, and remains with you, keep 

         3          us all unified forever. 

         4              And that would be my comment to you all.

         5              Thank you, and God bless you.

         6              (Applause.)

         7              GOVERNOR BUSH:  That's the end of our 

         8          meeting. 

         9              And we're really grateful to be here in 

        10          Melbourne.  And at noon, we are gathered -- 

        11          where?

        12              -- Wells Park.  I hope y'all can come, 

        13          and -- and go to the Agency Fair where you'll 

        14          see all of the various departments in 

        15          State government. 

        16              (The Board of Trustees of the Internal 

        17          Improvement Trust Fund Agenda was concluded.)

        18                              *   *   *

        19              (The Cabinet meeting was concluded at 

        20          11:03 a.m.)






                        ACCURATE STENOTYPE REPORTERS, INC.

                                 December 12, 2000
         1                    CERTIFICATE OF REPORTER




         5     STATE OF FLORIDA:

         6     COUNTY OF LEON:

         7              I, LAURIE L. GILBERT, do hereby certify that 

         8     the foregoing proceedings were taken before me at the 

         9     time and place therein designated; that my shorthand 

        10     notes were thereafter translated; and the foregoing 

        11     pages numbered 1 through 122 are a true and correct 

        12     record of the aforesaid proceedings.

        13              I FURTHER CERTIFY that I am not a relative, 

        14     employee, attorney or counsel of any of the parties, 

        15     nor relative or employee of such attorney or counsel, 

        16     or financially interested in the foregoing action.

        17              DATED THIS 27TH day of DECEMBER, 2000. 


        23                   LAURIE L. GILBERT, RPR, CCR, CRR, RMR
                             100 Salem Court
        24                   Tallahassee, Florida 32301

                        ACCURATE STENOTYPE REPORTERS, INC.