HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: HB 5101 PCB PKA 21-01 Education Funding
SPONSOR(S): PreK-12 Appropriations Subcommittee, Fine
TIED BILLS: IDEN./SIM. BILLS:
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
Orig. Comm.: PreK-12 Appropriations 14 Y, 1 N Bailey Potvin
Subcommittee
1) Appropriations Committee 26 Y, 2 N Bailey Pridgeon
SUMMARY ANALYSIS
The bill conforms applicable statutes to the appropriations provided in the House proposed General
Appropriations Act for prekindergarten through grade 12 education for Fiscal Year 2021-2022.
The bill:
Modifies the calculation methodology used to determine the amount of state funds the Florida Virtual
School (FLVS) receives in the Florida Education Finance Program (FEFP) to include the Mental Health
Assistance Allocation.
Modifies the virtual instruction program offered by K-12 public schools by:
o Requiring all school districts, regardless of whether the district qualifies for the sparsity
supplemental in the FEFP, to offer at least one option for part-time and full-time virtual
instruction for students within the school district.
o Requiring a school district to expend any difference in funds provided for a virtual full-time
equivalent (FTE) student and the amount paid to either the FLVS or approved virtual instruction
provider on computer and device hardware and associated operating software that complies
with the requirements established in s. 1001.20(4)(a)1.b., Florida Statutes.
o Limiting the enrollment of virtual FTE students residing outside of the school district providing
the virtual instruction to no more than 50 percent of the total enrolled virtual FTE students
residing inside the school district providing the virtual instruction.
Modifies the FEFP by:
o Eliminating the requirement that the 300 lowest performing elementary schools on the state
reading assessment must use their portion of the Supplemental Academic Instruction Allocation
on an additional hour per day of reading instruction.
o Repealing the Decline in Full-Time Equivalent Students Allocation, the Virtual Education
Contribution, and the Turnaround School Supplemental Services Allocation.
o Not reenacting the Funding Compression and Hold Harmless Allocation.
Repeals the Reading Scholarship Accounts Program.
Specifies the annual percent increase to the minimum base salary of instructional personnel on the
performance salary schedule and specifies the annual percent increase to the salary adjustment of an
employee on the performance salary schedule rated as highly effective.
Requires school districts to use a specified portion of their Elementary and Secondary School
Emergency Relief Funds – Nonenrollment Assistance to locate unaccounted students within their
school districts.
Requires school districts to use a specified portion of their Elementary and Secondary School
Emergency Relief Funds – Academic Acceleration to remediate the learning loss among kindergarten
through grade 12 students.
The bill takes effect July 1, 2021.
FULL ANALYSIS
This document does not reflect the intent or official position of the bill sponsor or House of Representatives .
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DATE: 3/31/2021
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Florida Virtual School
Present Situation
The Florida Virtual School (FLVS) is a component of the delivery of public education within Florida’s K-
20 education system1 and its purpose is to develop and deliver online distance learning education.2 As
an accredited, statewide public school district, the FLVS offers more than 190 online course3 to K-12
students, taught by certified teachers.
The mission of the FLVS is to provide students with technology-based educational opportunities to gain
the knowledge and skills necessary to succeed.4 The FLVS serves any student in the state who meets
the profile for success in this educational delivery context.
Since its establishment, FLVS’ student enrollment has steadily increased with enrollment growing by
almost 21,000 FTE students in the past five years.5 Enrollment for Fiscal Year 2020-2021 significantly
increased due to the coronavirus with many parents electing to enroll their student(s) in the FLVS.
Five-Year History of FLVS Enrollments
Fiscal Year Enrollment Increase
2016-17 32,213.46
2017-18 33,957.76 1,744.30
2018-19 36,242.83 2,285.07
2019-20 39,258.49 3,015.66
2020-216 52,902.60 13,644.11
The FLVS is considered a school district for purposes of receiving funds in the Florida Education
Finance Program (FEFP); however, it is funded with state FEFP funds only. The calculation
methodology for determining the amount of state funds the FLVS is appropriated in the FEFP is the
sum of their base FEFP funding (which is based on the forecasted student enrollment), the state-
funded discretionary contribution and a per FTE share of the discretionary local effort, the discretionary
millage compression supplement, the research-based reading instruction allocation, the teacher salary
increase allocation, the exceptional student education guaranteed allocation, if applicable, and the
instructional materials allocation.7 The mental health assistance allocation is currently not a FEFP
categorical included in the funding calculation for the FLVS; however, for its full-time public school
students, the FLVS compiles with s. 1011.62(16), Florida Statutes, that requires school districts to
submit a detailed plan outlining the local program and planned expenditures that focus on a multi-tiered
system of supports to deliver evidence-based mental health care assessment, treatment, and recovery
services to its students.8
Effect of the Bill
The bill amends the calculation methodology for the FLVS funding in the FEFP by adding to the
calculation the mental health assistance allocation established in s. 1011.62(16), Florida Statutes.
1 Section 1000.05(4), F.S.
2 Section 1002.37(1)(a), F.S.
3 https://www.flvs.net/about-flvs
4 Section 1002.37(1)(b), F.S.
5 Florida Education Finance Program (FEFP) final calculations for Fiscal Years 2016-17 through 2019-20.
6 Based on the October 2020 FTE Survey.
7 Section 1011.62(11), F.S.
8 Email from Teresa Umstead, Florida Virtual School, March 22, 2021.
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Virtual Instruction
Present Situation
Each school district that is eligible for the sparsity supplement in the FEFP must provide all enrolled
public school students within its district the option of participating in part-time or full-time virtual
instruction programs.9 Each school district that is not eligible for the sparsity supplement must provide
at least three options for part-time and full-time virtual instruction.10 To provide students with the option
of participating in virtual instruction programs, a school district can:
Contract with the FLVS or establish a franchise of the FLVS.
Contract with an approved virtual instruction provider.
Enter into an agreement with other school districts to allow the participation of its students in an
approved virtual instruction program provided by the other school district.
Establish a school district operated virtual instruction program.
Enter into an agreement with a virtual charter school.11
School districts may implement more than one option and may implement a different option for each
grade grouping. For all virtual instruction options, classroom teachers must hold a Florida teaching
certificate and the curriculum must align with state standards.12
Student enrollment options:
Student Enrollment Options for Virtual Instruction
School District-Offered Virtual Instruction In-District Out-of-
Option Student District
Students
FLVS Contract or Franchise Agreement Yes Yes
Contract with Approved Virtual Instruction Provider Yes Yes
Agreement with Another School District Yes N/A
District-Developed Virtual Instruction Program Yes Yes
Agreement with Virtual Charter School Yes Yes
The school district providing the virtual instruction reports the FTE student enrollments and is funded
for these students in the FEFP.13
Each school district must:
Provide to the Department of Education by October 1st of each year, a copy of each contract
with either the FLVS or an approved virtual instruction provider and the amounts paid per
unweighted FTE student for services procured.
Expend the difference in any funds funded in the FEFP for the virtual FTE students and the
amount the school district paid to either the FLVS or the approved virtual instruction provider on
implementation of the school district’s digital classroom plan.
Report no later than September 1st an itemized list of the technological tools purchased with
these funds in the prior fiscal year.14
It appears that as a result of the coronavirus, FTE student enrollment in virtual instruction has
increased significantly. Total virtual FTE enrollment went from 59,802 students in Fiscal Year 2019-
2020 to 131,128 student in Fiscal Year 2020-2021; an increase of 119 percent.15 Additionally,
9 Section 1002.45(1)(b), F.S.
10 Id.
11 Section 1002.45(1)(c), F.S.
12 Section 1002.45, F.S.
13 Section 1002.45(7)(e), F.S.
14 Section 1002.45(1)(e), F.S.
15 Fiscal Year Final FEFP Calculation and Fiscal Year 2020-2021 FEFP based on October 2020 FTE Survey.
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students enrolling in virtual instruction programs outside of their district of residence is beginning to
increase16.
Type 2018-2019 2019-2020 Difference %
FTE FTE Difference
In-District FTE 16,323 17,367 1,045 6%
Out-of-District FTE 1,374 3,018 1,644 120%
Total FTE 17,697 20,385 2,689 15%
% of Out-of-District FTE 8% 15% 7%
For Fiscal Year 2020-2021, three school districts have more than 20 percent of their virtual FTE
residing out-of-district:17
District In-District Out-of- Total FTE % Out-of-
FTE District FTE District FTE
Duval 1,492 396 1,888 21%
Hendry 63 5,684 5,747 99%
Osceola 862 849 1,711 50%
Effect of the Bill
The bill requires all school districts, regardless of whether they qualify for the sparsity supplement in the
FEFP, to offer at least one option for part-time and full-time virtual instruction for students within the
school district. The bill requires a school district to expend any difference between the amount funded
for the applicable virtual FTE students in the FEFP and the amount paid through either a contract with
the FLVS or an approved virtual instruction provider on computer and device hardware and associated
operating software that complies with the requirements of s. 1001.20(4)(a)1.b., Florida Statutes. Finally
the bill limits the enrollment of virtual full-time students residing outside of the school district providing
the virtual instruction to no more than 50 percent of the total enrolled virtual FTE students residing
inside the school district providing the virtual instruction.
Reading Scholarship Accounts Program
Present Situation
The Reading Scholarship Accounts Program was established in Fiscal Year 2018-2019 and provides
reading scholarships to students in grades 3 through 5 who are enrolled in a public school and scored
below a Level 3 on the grade 3 or grade 4 statewide, standardized English Language Arts assessment
in the prior year. The reading scholarships are contingent upon available funds, and are awarded on a
first-come, first-serve basis. An eligible student who is classified as an English Language Learner and
is enrolled in a program or receiving services that are specifically designed to meet the instructional
needs of English Language Learner students receive priority for receipt of a scholarship.18
Eligible uses of the reading scholarship include:19
Instructional materials.
Curriculum that includes a complete course of study for a particular content area or grade level,
including any required supplemental materials and associated online instruction.
Tuition and fees for part-time tutoring services provided by a person who holds a valid Florida
educator’s certificate pursuant to s. 1012.56, Florida Statutes, a person who holds a
baccalaureate or graduate degree in the subject area, a person who holds an adjunct teaching
certificate pursuant to s. 1012.57, Florida Statutes, or a person who has demonstrated mastery
of subject area knowledge pursuant to s. 1012.56(5), Florida Statutes.
16 Id.
17 Id.
18 Section 1002.411(2), F.S.
19 Section 1002.411(3), F.S.
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Fees for summer education programs designed to improve reading or literacy skills.
Fees for after-school education programs designed to improve reading or literacy skills.
An eligible nonprofit scholarship-funding organization participating in the Florida Tax Credit Scholarship
Program may establish reading scholarship accounts for eligible students in accordance with the
requirements of eligible nonprofit scholarship-funding organizations under chapter 1002, Florida
Statutes. The program is funded with state general revenue funds and the amount of each reading
scholarship is established in the General Appropriations Act. The following chart shows the 3-year
funding history of the Reading Scholarship Accounts Program:20
Fiscal Total # Maximum Total Amount Total
Year Scholarships Amount of Funded Appropriation
Funded Scholarship
2018-19 5,639 $500 per student $2,819,500 $10,000,000
2019-20 6,792 $500 per student $3,396,000 $7,600,000
2020-21* 2,783 $500 per student $1,391,500 $7,600,000
*As of January 27, 2021
Effect of Bill
The bill repeals the Reading Scholarship Accounts Program and provides direction to the participating
nonprofit scholarship-funding organization regarding the phase-out of the program.
Florida Education Finance Program
Present Situation
The Florida Education Finance Program (FEFP) was established in 1973 and is the state’s policy on
equalized funding to guarantee to each student the availability of educational programs and services
that are substantially equal regardless of geographic differences or varying local economic factors. The
FEFP is used to calculate the revenue allocations for all 67 school districts, six lab schools and the
Florida Virtual School.
FEFP funds are primarily generated by multiplying the number of FTE students in each of the funded
education programs by cost factors to obtain weighted FTE students. Weighted FTE students are then
multiplied by a base student allocation and by a district cost differential to determine the base FEFP