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THE CABINET

STATE OF FLORIDA

_____________________________________________________

Representing:

PAROLE COMMISSION
BOND FINANCE
DEPARTMENT OF HIGHWAY SAFETY
FLORIDA LAND & WATER ADJUDICATORY COMMISSION
DEPARTMENT OF EDUCATION
STATE BOARD OF TRUSTEES
STATE BOARD OF ADMINISTRATION


The above agencies came to be heard before
THE FLORIDA CABINET, Honorable Governor Bush presiding,
in the Cabinet Meeting Room, LL-03, The Capitol,
Tallahassee, Florida, on Tuesday, May 21, 2002
commencing at approximately 9:15 a.m.

Reported by:

SANDRA L. NARGIZ

Registered Professional Reporter
Registered Merit Reporter
Certified Realtime Reporter

ACCURATE STENOTYPE REPORTERS, INC.
100 SALEM COURT
TALLAHASSEE, FL 32301 (850)878-2221



2
APPEARANCES:

Representing the Florida Cabinet:

JEB BUSH
Governor


ROBERT F. MILLIGAN
Comptroller


CHARLES H. BRONSON
Commissioner of Agriculture

BOB BUTTERWORTH
Attorney General

CHARLIE CRIST
Commissioner of Education

TOM GALLAGHER
Treasurer

* * *



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I N D E X

PAROLE COMMISSION VOTES

3

DIVISION OF BOND FINANCE
(Presented by J. Ben Watkins, III)

ITEM ACTION PAGE
1 Approved 11
2 Approved 11
3 Approved 11
4 Approved 12
5 Approved 12

DEPARTMENT OF HIGHWAY SAFETY
(Presented by Fred O. Dickinson)

1 Approved 17
2 Approved 17
3 Approved 26

FLORIDA LAND & WATER ADJUDICATORY COMMISSION
(Presented by Teresa Tinker)

1 Approved 29
2 Approved 29
3 Approved 29
DEPARTMENT OF EDUCATION
(Presented by Wayne V. Pierson)

1 Approved 34
2 Approved 35
3 Remanded 72
4 Approved 120
5 Approved 120

STATE BOARD OF TRUSTEES
(Presented by David Struhs)

1 Approved 121
2 Deferred 144
3 Approved 144
4 Approved 145
5 Approved 145
6 Approved 146
7 Deferred 155


4


STATE BOARD OF ADMINISTRATION
(Presented by Tom Herndon, Executive Director)

1 Approved 157
2 Approved 157
3 Approved 158
4 Approved 158
5 Approved 158
6 Approved 159
7 Approved 159
8 Approved 160
9 Informational 164
10 Informational 161
11 Approved - Partial 163
12 Approved 165

CERTIFICATE OF REPORTER 166



5
1 P R O C E E D I N G

2 (The agenda items commenced at 9:15 a.m.)

3 MS. CASTILLE: You have you had an

4 opportunity to meet the three recommended

5 candidates that were recommended by the Parole

6 Qualifications Commission. They are Mr. Fred

7 Dumphy, Mr. Steve Embody, and Dr. Merissa Watson.

8 And Jeri will be -- I think you may have ballots

9 in front of you.

10 GOVERNOR BUSH: Does everybody have a ballot?

11 MS. CASTILLE: If you will go ahead and

12 select your candidate, we will collect the ballots

13 and count them. While we are counting them, we'll

14 go ahead and vote on the assignment of temporary

15 duties.

16 (Cabinet members voting.)

17 GOVERNOR BUSH: I think we need to move to

18 the touch screen system.

19 TREASURER GALLAGHER: While they are

20 collecting the ballots, we have some people in the

21 room who continue to (inaudible-not using

22 microphone.)

23 At one time we had five full-time

24 commissioners; now it's three. It's my belief

25 that we would have better attendance


6
1 (inaudible-not using microphone.) would be to

2 increase the per diem for these folks. So I

3 bring that up today to at least discuss it, and

4 hope we can agree. I think that will be

5 something I would recommend.

6 GOVERNOR BUSH: Sure, where would the money

7 come from?

8 TREASURER GALLAGHER: If they don't have it,

9 they can't pay it.

10 GOVERNOR BUSH: Can't write the check.

11 GENERAL MILLIGAN: I think the question is

12 whether you have to go around the block to get the

13 per diem rates, and I am willing to take a look at

14 that and get back to you all.

15 GOVERNOR BUSH: Okay.

16 GENERAL BUTTERWORTH: I have one question.

17 GOVERNOR BUSH: We will talk about it like in

18 two weeks, if possible.

19 TREASURER GALLAGHER: I am not trying to do

20 it today. I thought it was something we need to

21 discuss, maybe talk to some of the chairmen, some

22 of the commissioners, see what their thoughts are.

23 Maybe there is a better way than that.

24 GOVERNOR BUSH: No, that's a good point.

25 General Butterworth?


7
1 GENERAL BUTTERWORTH: Must someone already

2 served as a commissioner to be appointed as a

3 temporary duty commissioner?

4 MS. CASTILLE: General, I am not sure if

5 there is a requirement for that. I know that it

6 has been the past practice of this board to

7 approve only past commissioners.

8 TREASURER GALLAGHER: That's the only way we

9 have done it. That's another opportunity. There

10 is no reason why we couldn't get some retired

11 judges or --

12 GENERAL BUTTERWORTH: Retired Cabinet

13 members, a couple of us up here -- I may have to

14 talk to General Milligan. I don't think it would

15 be a Sunshine violation.

16 GOVERNOR BUSH: He's not listening, General

17 Butterworth.

18 GENERAL BUTTERWORTH: General Milligan, I was

19 just stating that I am not sure it's a requirement

20 for a temporary duty parole commissioner to have

21 been a former parole commissioner. And we were

22 talking about possibly expanding that pool to

23 maybe include also former Cabinet members.

24 GENERAL MILLIGAN: Are you looking for a job?

25 Let's reconsider that per diem business again real


8
1 quick here.

2 TREASURER GALLAGHER: Which do you want to do

3 first?

4 GOVERNOR BUSH: General Butterworth's motion

5 is to include all former Cabinet members that

6 served as sheriffs, head of the Highway Safety

7 Department and have a law degree.

8 GENERAL BUTTERWORTH: I think lieutenant

9 generals from the Marine Corps also could be

10 involved in that, I think.

11 GENERAL MILLIGAN: Having sat on the Clemency

12 Board and poured over those cases, it's not an

13 envious job. Frankly, I think there is a lot of

14 merit in taking look at what we do pay these

15 people to do that job.

16 And there may be some constitutional

17 limitations on it, I don't know, or legislative

18 restrictions or something; but I think in all

19 seriousness, we do need to look at what we are

20 paying them.

21 GOVERNOR BUSH: You have been empowered to

22 look at it, maybe if we can come back in two weeks

23 and see if it's appropriate to change the policy.

24 MS. CASTILLE: We'll go ahead and will we

25 defer the appointment of these temporary --


9
1 GOVERNOR BUSH: No. Is there a motion to --

2 TREASURER GALLAGHER: I move to approve

3 Scrivens, Simmons, Spooner and Wolfson.

4 COMMISSIONER BRONSON: Second.

5 GOVERNOR BUSH: Moved and seconded. Without

6 objection, the item passes.

7 MS. CASTILLE: The results of the ballot

8 voting for the appointment of the parole

9 commissioner is a unanimous vote for Commissioner

10 Dumphy.

11 So before you, you now have ballots for

12 the chairman of the Parole Commission. And if

13 you will select your candidates for chairman,

14 we will then pass out the ballots afterwards

15 and have you vote for vice chairman.

16 (Cabinet members voting.)

17 MS. CASTILLE: And again, it's a unanimous

18 vote for Chairman Jimmy Henry for chairman.

19 We'll pass these out for vice chairman.

20 GOVERNOR BUSH: Vice chairman go to funerals

21 and --

22 MS. CASTILLE: Vice chairmen chair the

23 meetings when the chairman is not there.

24 GOVERNOR BUSH: Vice chairman have to be a

25 legislative director?


10
1 MS. CASTILLE: We have four votes for Monica

2 David as vice chair.

3 GOVERNOR BUSH: Very good.

4 TREASURER GALLAGHER: Governor, let me

5 recognize her; she is here today and also Fred

6 Dumphy is also here. So would they stand and be

7 recognized. Congratulations to both.

8 GOVERNOR BUSH: Thank you for your help and a

9 very difficult challenge. And we'll get the

10 backlog done and move forward in a much more

11 efficient way so people can hear from us as

12 quickly as possible about whether or not their

13 rights are going to be restored. You all have

14 done really good work under difficult

15 circumstances in the last year.

16 MS. CASTILLE: Thank you, Governor, that

17 concludes the vote on the Parole Commission.

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1 GOVERNOR BUSH: Division of Bond Finance.

2 TREASURER GALLAGHER: Move the minutes.

3 GENERAL BUTTERWORTH: Second.

4 GOVERNOR BUSH: Moved and seconded. Without

5 objection, it's approved.

6 Good morning, Ben.

7 MR. WATKINS: Good morning. Item 2 is a

8 resolution authorizing the competitive sale of up

9 to $200 million in PICO bonds. And when that

10 $200 million in sale and authorization is combined

11 with a left over authorization that we have not

12 used, that will bring the total authorization for

13 sale of PICO bonds to 250 million.

14 TREASURER GALLAGHER: Moved.

15 COMMISSIONER BRONSON: Second.

16 GOVERNOR BUSH: Moved and seconded. Without

17 objection, it's approved.

18 MR. WATKINS: Item number 3 is report of

19 award on the competitive sale of $128.3 million of

20 PICO bonds. The bonds were awarded to the low

21 bidder at a true interest cost of 5.03 percent.

22 TREASURER GALLAGHER: Motion on 3.

23 COMMISSIONER BRONSON: Second.

24 GOVERNOR BUSH: Moved and seconded. Without

25 objection, it's approved.


12
1 MR. WATKINS: Item number 4 is a report of

2 award on the competitive sale of $150 million in

3 lottery revenue bonds for funding school

4 construction. The bonds were awarded to the low

5 bidder at a true interest cost of 4.84 percent.

6 TREASURER GALLAGHER: Motion on 4.

7 COMMISSIONER BRONSON: Second.

8 GOVERNOR BUSH: Moved and seconded. Without

9 objection, it's approved.

10 MR. WATKINS: Item number 5 is a report of

11 award on the competitive sale of $26,070,000 in

12 capital outlay bonds for school construction. The

13 bonds were awarded to the low bidder at a true

14 interest cost of 4.66 percent.

15 TREASURER GALLAGHER: Motion on 5.

16 COMMISSIONER BRONSON: Second.

17 GOVERNOR BUSH: Moved and seconded. Without

18 objection, it's approved.

19 TREASURER GALLAGHER: Are we seeing the

20 interest rates starting to click up a little bit?

21 Are these almost the same date?

22 MR. WATKINS: It's been moving around some.

23 A month ago rates were actually down from highs,

24 but they've started back up again here over the

25 last couple of weeks based on the stronger


13
1 economic moves. So they have been high and low

2 and are moving back up again. And the long-term

3 prognosis is obviously for increasing interest

4 rate as the economy moves ahead.

5 TREASURER GALLAGHER: When it gets high

6 enough, we are going to start looking at

7 variables?

8 MR. WATKINS: Right. Actually I will be back

9 with you on the Everglades Restoration bonds that

10 were passed this legislative session, we are going

11 to consider whether or not it would be prudent to

12 do those on a variable rate basis to address some

13 of our capital structure. So we'll be back with

14 you on that.

15 TREASURER GALLAGHER: Okay.

16 GOVERNOR BUSH: Ben, we are looking at the

17 transfers of money from the Preservation Bonding

18 Programs out into the regular budget. Can you

19 give us any sense -- I am looking at it, excuse

20 me. This is in my duties to review the budget.

21 Can you give us just a -- tell the Cabinet what

22 actually took place in the budget this year?

23 MR. WATKINS: What we had -- when we were

24 looking for evaluating different ways to pay for

25 Everglades Restoration, included in your


14
1 recommendations to the legislature was taking a

2 portion of the monies in the reserve fund -- there

3 is a reserve fund securing Preservation 2000

4 Florida Forever bonds. In the event that there is

5 ever a shortfall in documentary doc stamp taxes

6 which secures those funds, the reserve funds could

7 be drawn on.

8 That reserve fund is funded with cash.

9 And in your budget recommendations was a

10 recommendation that we take a portion of those

11 monies out of the reserve fund that were

12 borrowed for environmental purposes and devote

13 it to Everglades Restoration.

14 When the mechanics of that were explained

15 to the legislature, they decided that they

16 liked the first part of the equation which was

17 to take the money out of the reserve fund, but

18 the way that they were using that money was

19 fundamentally different, and that was to

20 balance the budget.

21 GOVERNOR BUSH: No. No. No. It was to

22 spend on other things.

23 MR. WATKINS: Spend on other things.

24 GOVERNOR BUSH: It wasn't to balance the

25 budget.


15
1 MR. WATKINS: It was a revenue source that we

2 otherwise wouldn't have available, and it was put

3 into general revenues.

4 GOVERNOR BUSH: Because of spending.

5 MR. WATKINS: Correct. But it allows a

6 higher spending level than would otherwise --

7 GOVERNOR BUSH: Thank you. You are a

8 diplomat.

9 MR. WATKINS: I am trying to be diplomatic.

10 So --

11 GENERAL BUTTERWORTH: You don't have to be.

12 They are out of town.

13 MR. WATKINS: You mean I can say whatever I

14 want?

15 TREASURER GALLAGHER: They will be back.

16 GOVERNOR BUSH: I hope not this year.

17 MR. WATKINS: So imbedded in the current

18 budget proposal is taking a hundred million

19 dollars out of the reserve funds that are held for

20 environmental programs and transferring those to

21 general revenues.

22 Now what allows us to do that is

23 purchasing a surety bond or financial product

24 which will satisfy our reserve requirements and

25 free up the cash.


16
1 So that is what has transpired during the

2 legislative session. And obviously there was a

3 lot of discussion about the appropriateness of

4 using those monies that were environmental bond

5 proceeds and using those monies for purposes

6 that were not associated with environmental

7 projects.

8 So --

9 GOVERNOR BUSH: Thank you.

10 MR. WATKINS: Is that sufficient?

11 GOVERNOR BUSH: That's sufficient.

12 MR. WATKINS: Very good. Thank you.

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1 GOVERNOR BUSH: Department of Highway Safety.

2 TREASURER GALLAGHER: Move the minutes.

3 COMMISSIONER BRONSON: Second.

4 GOVERNOR BUSH: Moved and seconded. Without

5 objection, it's approved.

6 Item 2.

7 MR. DICKINSON: Good morning, Governor,

8 Cabinet.

9 Item 2 is approval of the quarterly report

10 for the quarter ending March 2002.

11 TREASURER GALLAGHER: Move.

12 COMMISSIONER BRONSON: Second.

13 GOVERNOR BUSH: Any discussion? Anything you

14 want to highlight?

15 MR. DICKINSON: Well, sir, alcohol-related

16 fatalities are down. There is something I think

17 the commissioner wanted to mention that was our

18 ticket campaign, our seat belt usage.

19 TREASURER GALLAGHER: Why don't you go ahead

20 and talk about that?

21 MR. DICKINSON: We are kicking it off for

22 this weekend with many of our brothers and sisters

23 in law enforcement, not only in this state but

24 other states, trying to increase the seat belt

25 usage and keep fatalities down.


18
1 We didn't have a good year last year,

2 Governor, we are about even statistically. I

3 think we had 12 more deaths last year than the

4 previous year; I know you met with the NHTSA

5 officials.

6 GOVERNOR BUSH: Very impressive, the data

7 they have about direct linkage between driving

8 without seat belts and fatalities, and the

9 marginal increase in the costs obviously to

10 families but to society, to the state, to

11 government in general, is pretty phenomenonal.

12 MR. DICKINSON: It's extensive. And we are

13 making a push to try to drive seat belt usage up.

14 I know you have been behind us to try to pass that

15 primary seat belt law, and I am sure it will come

16 back up up again.

17 GOVERNOR BUSH: One of the statistics that I

18 found, and hopefully this will be the main selling

19 point in the future when the bill is submitted

20 again to the legislature, but also just for

21 awareness purposes.

22 I think my advice is to really use the

23 statistic that was -- I don't remember the

24 exact numbers but when an adult uses a seat

25 belt, the percentage of kids that use a seat


19
1 belt goes up manyfold.

2 And when an adult doesn't, the chances of

3 a kid not having a seat belt on in the car is

4 much higher.

5 So to me, that's the main -- there are

6 many good reasons to do this, but that's

7 probably the most significant one, is that we

8 are putting children in a peril position by not

9 buckling up.

10 MR. DICKINSON: And we have improved our

11 child safety regulations with a lot of the new

12 laws as well as the minors. There are a number of

13 laws in there, curfews and whatnot; we have driven

14 fatalities for minors down substantially.

15 GOVERNOR BUSH: General.

16 GENERAL BUTTERWORTH: Governor, I don't have

17 the full report here, but with the 775 highway

18 deaths, how many of those were not wearing a seat

19 belt?

20 MR. DICKINSON: General, I can get those for

21 you.

22 GENERAL BUTTERWORTH: We used to get these

23 all the time.

24 Also, with children being killed in

25 crashes, at one point in time it was almost


20
1 every child that lost his or her life was not

2 wearing a seat belt and was not in a proper

3 type of harness.

4 When someone goes through a toll booth, if

5 they are not wearing a seat belt, does that

6 toll booth operator say something, do you know?

7 They used to do that.

8 MR. DICKINSON: I don't know. I don't know

9 if we have anybody right there at the spot all the

10 time, but I am sure when they do, if they see a

11 violation, that they try to get the word out.

12 One other item, Governor, and I know you

13 have been interested in this, but our driver's

14 license offices, we have had four counties

15 where we are trying to put all of our support

16 in a couple of offices to handle the foreign

17 nationals. And we are getting ready to open up

18 all offices in all counties as of June 1 to be

19 able to handle anybody that walks in that

20 office for any problem.

21 So I appreciate the support from your

22 office and some of those constituent groups

23 that have clamored to us; we hear them. We'll

24 open those offices.

25 GOVERNOR BUSH: Fred, on that issue -- I am


21
1 sorry, go ahead.

2 COMMISSIONER CRIST: I wonder if you can

3 elaborate just a little bit on that; I didn't

4 quite catch --

5 MR. DICKINSON: Yes, sir, Commissioner. In

6 four counties we had 12 offices opened as opposed

7 to probably 30 offices in those counties, that we

8 wanted just the foreign nationals to go just to

9 those offices.

10 And the reason being that we could only

11 train so many of our people to handle the

12 examination of the documents.

13 INS has come in, and we trained everybody

14 now. So June 1 we are opening up all offices.

15 And it was quite a push in those offices; quite

16 frankly, that's where we had standing room only

17 and some long lines. Now we can spread the

18 constituency out a little bit, and they can go

19 in any office and get taken care of.

20 COMMISSIONER CRIST: What is the additional

21 training?

22 MR. DICKINSON: Just for examination of

23 documents. When you bring in your passports,

24 visas, whatever you may have, we want to make

25 sure -- INS has so many documents that could fill


22
1 a dictionary probably. And we have gotten more

2 proficient in examining those documents and

3 understanding what we are looking at.

4 And there is also some fraud involved that

5 we are paying attention to right now. And with

6 the advent of 9/11, and all the states are

7 really tightening down, I hate to say it, but

8 you can buy a lot of these documents over the

9 Internet and there has been a proliferation of

10 some fraudulents out in that area. So we are

11 paying attention to that.

12 COMMISSIONER CRIST: Congratulations to you

13 for doing that.

14 GOVERNOR BUSH: Fred, on the question of

15 documentation, when a person, nonUS citizen comes

16 in, if they are applying for residency rather than

17 have it, whether it's a temporary visa or they are

18 applying for permanent residency, can they use

19 that as the basis with proper identification to

20 get a license?

21 MR. DICKINSON: Governor, if they show us

22 some documentation they have been to INS and have

23 applied, they will walk out of there with a

24 license.

25 GOVERNOR BUSH: That is important to get out


23
1 because --

2 MR. DICKINSON: We are getting that out,

3 thanks to your efforts. And also, that bill you

4 signed gave us the authority to go forward. It

5 really brought together your Executive Order 300,

6 and gave some authority for us to deal with that.

7 GOVERNOR BUSH: It's just the amount of

8 misinformation, as you know, and I appreciate you

9 all taking the time to kind of pause and make sure

10 that the actual facts are out in front of people.

11 People are really scared about their families'

12 livelihood, and I think what we are doing is the

13 exact right thing and we are providing enough

14 flexibility for people that are here for the

15 proper purposes, that have a legal case.

16 I mean, the efficiency of the INS has been

17 proven over and over again, and you get into

18 that maze and it may take a while, it's

19 guaranteed to take a while.

20 So as long as people have applied for

21 asylum or legal residency or whatever, and

22 that's work in progress, I think our system

23 allows for them to be given the license.

24 I am not sure that we have got enough

25 coverage of that.


24
1 TREASURER GALLAGHER: Six years?

2 MR. DICKINSON: Two years license actually.

3 It gives them the two years for time to get with

4 INS. And once they get -- INS will give them a

5 Green Card or whatever provision they apply for.

6 We'll tie to the INS time frame, or if they have

7 the Green Card, it would be the four or six years,

8 depending on safe driver status.

9 GOVERNOR BUSH: What we have done, which

10 makes total sense, is that no longer if someone's

11 visa expires, will their driver's license

12 expiration be after that, which I think was a good

13 response to September 11.

14 COMMISSIONER BRONSON: One of the things that

15 the Tri-National Accord between Mexico, Canada and

16 the US that I sat on last week in Ogalis,

17 Lenora --

18 GOVERNOR BUSH: On what?

19 COMMISSIONER BRONSON: On people coming in to

20 work in the United States. One of the issues was

21 that the US does depend on so many workers coming

22 in, especially in the fields, states not just

23 Florida but all over this country; and there is a

24 committee set to work together on those wishing to

25 come to work in America or anywhere else in this


25
1 Tri-National Accord, Canada, and so forth, that

2 there is going to be a system put together now to

3 check and recheck between the Mexican government

4 and the US.

5 And, of course, the state can lock into

6 that so that there can be a cross check on the

7 viability of that individual, whether they are

8 legally here, whether they have all the

9 documentation, and so forth, with Mexico.

10 I think this is an issue that will all

11 come together as we get this committee put

12 together to help.

13 GOVERNOR BUSH: That's very helpful.

14 MR. DICKINSON: Also, Governor, we have hired

15 a young man, former head of Hispanic Affairs for

16 Ford Motor Company -- he is retired -- and Madesco

17 has been a blessing. He has hit all the Latin

18 stations, Hispanic stations. He is helping us

19 with our team. And with the help of your office,

20 of course, we are doing that outreach program that

21 I probably opened my mouth too early on it.

22 GOVERNOR BUSH: Oh, we haven't started?

23 MR. DICKINSON: We actually are doing the

24 same thing we have been doing, Governor. I think

25 you are going to kick off the first of next month,


26
1 but we are after it.

2 GOVERNOR BUSH: It's important.

3 MR. DICKINSON: He has been helpful. You are

4 right, there is a lot of misinformation and more

5 information we can get to the hands of those who

6 need it at the proper time, is what we are aiming

7 for.

8 GOVERNOR BUSH: Thank you. There is a

9 motion, and second. Without objection. It's

10 approved.

11 Item 3.

12 MR. DICKINSON: Item 3 is submission of our

13 newest license plate, this is the American Red

14 Cross plate that was passed back during the

15 special session in the fall.

16 This is one of the two plates that passed

17 in the fall. And this money will go, half to

18 the Red Cross for education and disaster relief

19 in Florida, and half to the poison control

20 centers for the purposes of combatting

21 bio-terrorism and other poison-related issues.

22 COMMISSIONER BRONSON: Motion on 3.

23 TREASURER GALLAGHER: Second.

24 GOVERNOR BUSH: Moved and seconded. Without

25 objection, it's approved.


27
1 MR. DICKINSON: Governor, we had eight tags

2 approved or voted on this session, but three

3 thankfully blipped off the screen. So we netted

4 out --

5 GOVERNOR BUSH: Who are the three that left?

6 MR. DICKINSON: The three that left are two

7 arena football teams from Orlando and Tampa, and

8 unfortunately the Girl Scouts.

9 GOVERNOR BUSH: The Girl Scouts?

10 MR. DICKINSON: Yes, sir, they didn't meet --

11 GOVERNOR BUSH: Weren't they a relatively

12 new --

13 MR. DICKINSON: Yes, sir, I think they have

14 been in five years.

15 GOVERNOR BUSH: Well, I think it's wonderful

16 that we have the drop off thing because there is

17 going to be a point in time when the Florida

18 regular license plate will actually be the vanity

19 plate.

20 MR. DICKINSON: I hope we charge accordingly,

21 Governor.

22 GOVERNOR BUSH: Exactly. Thank you, Fred.

23 GENERAL BUTTERWORTH: We had the Blue's plate

24 for a while.

25 GOVERNOR BUSH: No, we didn't. Was it a


28
1 unanimous vote?

2 GENERAL BUTTERWORTH: It was the owl they had

3 on it.

4 GOVERNOR BUSH: Died a quiet, graceful death.

5 TREASURER GALLAGHER: It was your idea,

6 right, Bob?

7

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29
1 GOVERNOR BUSH: Florida Land And Water

2 Adjudicatory Commission.

3 TREASURER GALLAGHER: Motion on minutes.

4 COMMISSIONER BRONSON: Second.

5 GOVERNOR BUSH: Moved and seconded. Without

6 objection, it's approved.

7 MS. TINKER: Item 2, recommend approval of

8 the proposed final rule renaming and expanding the

9 Gateway Services District in Lee County.

10 TREASURER GALLAGHER: Motion on 2.

11 COMMISSIONER BRONSON: Second.

12 GOVERNOR BUSH: Moved and seconded. Without

13 objection, it's approved.

14 MS. TINKER: Item 3, recommend approval of

15 the proposed final rule expanding the Bayside

16 Improvement Community Development District in Lee

17 County.

18 TREASURER GALLAGHER: Motion on 3.

19 GENERAL BUTTERWORTH: Second.

20 GOVERNOR BUSH: Moved and seconded. Without

21 objection, it's approved.

22 MS. TINKER: Thank you.

23

24

25


30
1 GOVERNOR BUSH: Department of Education.

2 COMMISSIONER CRIST: Governor, with your

3 permission we would -- are we doing Trustees next?

4 GOVERNOR BUSH: No.

5 COMMISSIONER CRIST: I have a resolution,

6 Governor and Members of the Cabinet. It's my

7 pleasure to recognize the 2002 school related

8 employees of the year.

9 Each school district nominates an

10 individual for school related employee of the

11 year award. This year the Florida Department

12 of Education received nominations from 64

13 school districts.

14 The selection committee reviews the

15 nomination packets and identifies five regional

16 finalists that I would like to introduce.

17 Region 1 finalist is Peggy Ann Tucker.

18 Peggy, if you could, please, stand.

19 A paraprofessional at Chattahoochee

20 Elementary Magnet School in Gadsden County,

21 throughout her 24 year as a paraprofessional

22 she has facilitated reading groups, chaperoned

23 field trips and often comes to work early or

24 stays late to achieve extra mile tasks to help

25 a child.


31
1 Her bond with students encourages them to

2 open their minds to learning and trust others.

3 Peggy is also very active in her community

4 working with Relay for Life and Special

5 Olympics.

6 The region 2 finalist is Francis Lesley.

7 She is a parent, educator and Florida First

8 Start Program liaison at the Fearnside Family

9 Services Center in Alachua County. She has

10 been working at the center for four years

11 providing guidance through teaching, parenting

12 and life management classes to families moving

13 towards self-sufficiency.

14 She conducts home visits to children

15 enrolled in the Florida First Start Program and

16 help began the Caring and Sharing Clothes

17 Closet at the center.

18 The region 2 finalist is Jesse Lowery.

19 The head operator at Mill Creek Elementary

20 School in Osceola County; during his seven

21 years with the district, he has dedicated

22 himself to maintaining the appearance, safety

23 and overall operation of the entire campus. He

24 has served on his school safety committee,

25 leadership team, school advisory council and


32
1 budget committee.

2 Jesse participates in honor roll

3 celebrations and FCAT prep rallies, and

4 volunteers his time by coaching Pop Warner

5 Football each fall in Kissimmee.

6 The region 4 finalist is Don Walter. Don

7 has been a teacher assistant at Bayshore High

8 School in Manatee County for the past three

9 years. He works with the profoundly mentally

10 handicapped and autistic students.

11 He arrives each day with a smile for bus

12 duty at 7:00 a.m. Don has also implemented the

13 computer assisted reading program for the

14 trainable mentally-handicapped students. He

15 continues to be a caregiver by volunteering at

16 regular school hours at the Manasota

17 Association for Retarded Citizens, helping

18 these kids deliver Meals on Wheels to the

19 counties' elderly.

20 The region 5 finalist is Tonya Watkins. A

21 paraprofessional III at Phillis Wheatley

22 Elementary School in Miami-Dade County; working

23 in the technology department, she has assisted

24 teachers in integrating technology into their

25 daily curriculum. She is a member of the


33
1 Parent/Teacher/Student Association and

2 Educational Excellence School Advisory Council.

3 She participates in a schoolwide mentoring

4 program and serves as a tutor after school on

5 Saturdays.

6 On top of all of this, Tonya has been a

7 student herself at Nova Southeastern University

8 and recently completed her internship,

9 graduating this April with honors, receiving a

10 Bachelor's of Science in Education.

11 Each and every one of these individuals

12 should be proud to represent their fellow

13 school related employees. They are shining

14 examples of dedication and commitment to

15 quality service in our public schools and local

16 communities.

17 At this time, Governor, I am pleased to

18 present to all of you our overall winner.

19 Representing region 1 from Chattahoochee

20 Elementary Magnet School in Gadsden County,

21 please help me congratulate Peggy Ann Tucker,

22 the 2002 School Related Employee Of The Year.

23 Governor, I move the resolution.

24 MS. TUCKER: Am I suppose to talk?

25 GOVERNOR BUSH: You don't have to talk.


34
1 MS. TUCKER: I do well with children, not

2 adults.

3 God bless you, I am so sorry I won and you

4 didn't. I really am. And I am just honored to

5 be here, and children are my life. They always

6 have been and they always will be.

7 And in order to know children, you've got

8 to be a child yourself. And people keep

9 telling me I need to grow up, but you know, I

10 really don't went to grow up because I like

11 being a child.

12 And I just don't believe this, but God

13 bless you all. Thank you so very much. I

14 appreciate it.

15 (Picture taking.)

16 GOVERNOR BUSH: Thank you again. Is there a

17 motion on the minutes?

18 COMMISSIONER CRIST: Motion.

19 COMMISSIONER BRONSON: Second.

20 GOVERNOR BUSH: For March 26 and April 9.

21 There is a motion and a seconded. Without

22 objection, it's approved.

23 Item 2.

24 MR. PIERSON: Item 2 is adoption of a

25 resolution authorizing the competitive sale and


35
1 delivery of $200 million State of Florida State

2 Board of Education PICO bonds.

3 TREASURER GALLAGHER: Motion.

4 COMMISSIONER BRONSON: Second.

5 GOVERNOR BUSH: Moved and seconded. Without

6 objection, it's approved.

7 MR. PIERSON: Item 3 is a charter school

8 appeal, Academic Bridge Charter School versus

9 Manatee County School Board.

10 This appeal is brought to the State Board

11 of Education pursuant to 228.056, Florida

12 Statutes.

13 The board may, after hearing testimony,

14 accept the appeal and remand back to the school

15 board or deny the appeal and accept the school

16 board's action.

17 Representing the charter school is

18 Reverend James Golden, and Robert Shapiro will

19 represent Manatee.

20 GOVERNOR BUSH: Thank you, welcome.

21 REVEREND GOLDEN: Good morning, Governor Bush

22 and to the members of the Cabinet.

23 I am Reverend James Golden. I am the

24 pastor of Temple African Methodist Episcopal

25 Church of Bradenton, Florida. I serve as the


36
1 chairman of the board of the Central Bradenton

2 Charter School Corporation seeking to do

3 business in the State of Florida as Academic

4 Bridge Charter School.

5 I served also in the City of Bradenton as

6 a member of the Bradenton City Council in the

7 area we are trying to locate this school.

8 They mayor there is the Honorable Wayne

9 Poston.

10 On October 1, we submitted an application

11 for acceptance or denial to the Manatee County

12 School Board.

13 On October 29th, we received our first

14 letter setting a time to discuss that

15 application for November 19th. We received a

16 second letter on November 8th with a new time

17 slot with the same date for discussion for

18 November 19th.

19 From October 1 to November 19th, about 40

20 days, I received no input, no feedback, from

21 the school board staff.

22 Following the meeting of 11-19, no written

23 communication was received nor could any

24 direction be ascertained regarding any

25 corrective or remedial measures that could be


37
1 taken to improve the application.

2 It was not until December 21st that the

3 school board staff acknowledged that a letter

4 dated November 28, which contained within it

5 recommendations and concerns regarding four

6 areas and several concerns in each of those

7 areas, it was not until December 21st that they

8 acknowledged that that November 28 letter had

9 been misdirected and sent to someone else.

10 However, in my own attempt to address the

11 issues raised in the meeting that we did have

12 on November 19th and in an effort to secure an

13 approval from the school board on December 3rd,

14 I did prepare a revised application.

15 That revised application was submitted on

16 December 12th to the staff in anticipation of

17 the meeting on December 17th, because at the

18 December 3rd meeting of the Manatee County

19 School Board, more than 60 days after we

20 submitted our application, no action was taken.

21 On the 17th, at that school board meeting,

22 in spite of having been told by the staff that

23 on the 14th it was too late to submit the

24 application and that it would not be considered

25 because we had, quote, passed the deadline for


38
1 consideration of applications for this year,

2 and that the recommendation on my submission

3 was to deny.

4 In spite of that, on the 17th, the school

5 board did, in fact, consent and directed the

6 staff to consider all applications and

7 amendments as of December 21st.

8 On the 21st of December, after acquiring a

9 copy personally from the superintendent of

10 those matters contained in the November 28th

11 letter, which I still have not received from

12 staff, I submitted a point-by-point amendment

13 to the revised application, it is contained in

14 the records, specifically addressing only the

15 matters contained in the letter of

16 November 28th.

17 This amendment was submitted on

18 December 21st. By letter of December 18th, I

19 was informed that the staff would reconvene

20 following the holidays with information going

21 to the school board on January 28th.

22 From December 21st until meeting again

23 with the charter panel on January 18th,

24 approximately a month, no input nor any

25 feedback was received again from the school


39
1 board staff.

2 On Tuesday, January 21st, following the

3 holiday weekend, Martin Luther King, Jr,

4 holiday weekend, the applicant received by hand

5 delivery from the assistant superintendent of

6 the Manatee County School Board, Ms. Edwards, a

7 5-page letter outlining, quote, a number of

8 concerns that needed to be addressed no later

9 than January 24th by 8:00 a.m.

10 In an attempt to address those matters and

11 only those matters in that letter, I convened

12 the help of our consultant, Dr. Charles Godwin,

13 who is superintendent of the United Methodist

14 Charter Schools in Hillsborough County, I

15 convened our CPA, Mr. Byron Sheehan, and I

16 convened our contractor Mr. Stan Stephens, all

17 of these people there in Manatee County to help

18 draft something that would suffice and would

19 meet the deadline on the 24th of January.

20 We prepared a substantial and detailed

21 addendum to our application and submitted it on

22 January 24th.

23 Nevertheless, the staff, by letter one day

24 later, deemed this addendum, quote, essentially

25 a new application and they recommended denial.


40
1 At its meeting of January 28, by a

2 four-to-one vote, with the chairman of the

3 school board voting against, the recommendation

4 to deny was accepted.

5 Chairman Kinnan said at that time and I

6 quote, he could find no legal reason not to

7 accept the application, because the statute has

8 built into it -- and this is the essence of

9 what I am concerned with here today before this

10 Cabinet -- an opportunity for the school board

11 and the applicant to address those matters that

12 need to be addressed before the school board

13 and the applicant enter into a charter

14 contract.

15 Our concern, Governor and members of the

16 Cabinet, is that for us, this literally has

17 been from Day One do or die. This is by no

18 small measure our last gasp.

19 At this point, we are asking the Cabinet

20 of the State of Florida to ask the school board

21 of Manatee County to merely accept our

22 application. We are not asking the School

23 Board of Manatee County to enter into a

24 contract with us. We still have that hurdle to

25 cross.


41
1 We are not asking Manatee County to lower

2 its standards. We are not asking to be treated

3 as if we are not going to provide a first-class

4 product.

5 What we are simply asking is to clear the

6 procedural hurdle that will allow us at this

7 point in time to get access to the assistance

8 that obviously we need to frame an application

9 that can withstand the scrutiny of the Manatee

10 County School Board staff.

11 This morning -- and this is my last

12 comment, Governor; this morning I have been

13 assured by the Department of Education

14

15 Staff, Ms. McCain who is head of the school choice

16 office, that if, in fact, I am successful in this

17 petition, that every opportunity will be afforded me

18 and all of the assistance will be given to this

19 Central Bradenton Charter School to have us be

20 prepared by the time of the next Manatee County

21 School Board meeting to not only go forth and ask,

22 should this Cabinet so grant it in its decision, to

23 ask the Cabinet to not only -- to ask the school

24 board to not only accept the Cabinet's

25 recommendation, but we'll be prepared to present the


42
1 application.

2 GOVERNOR BUSH: Reverend, you want to start

3 school in August?

4 REVEREND GOLDEN: We are still, from the

5 people that I am talking with and from the

6 consultants we have, we can start school in

7 August.

8 We will not have the building that we are

9 trying to have Mr. Stephens construct for us.

10 Had we started in March, we would have had the

11 building in August and then we would not have a

12 problem. Because we are procedurally bound at

13 this point, we will have to start school in an

14 alternate location. In the record there is a

15 letter from the --

16 GOVERNOR BUSH: You want to start in August?

17 REVEREND GOLDEN: Yes, sir.

18 GOVERNOR BUSH: You are capable of doing it

19 in your opinion?

20 REVEREND GOLDEN: I am capable of doing that

21 in my opinion, and it is essential for us to take

22 advantage of the financial benefits that will be

23 made available to us from the Department of

24 Education via federal funds. The budget that we

25 have prepared, that Mr. Sheehan has prepared for


43
1 us, incorporates into it $150,000 of money that

2 would help us to develop a curriculum, that would

3 help us to hire the staff we would need and these

4 things can be done. The only thing that I cannot

5 do by August 1st is have the building built.

6 GOVERNOR BUSH: All right. Let's hear from

7 the school district. Let's hear from the Manatee

8 school district and stay close by. Take a seat

9 and you will be back up in a second.

10 MR. SHAPIRO: Good morning, Governor Bush and

11 Members of the Cabinet, my name is Rob Shapiro. I

12 am the staff attorney for the Manatee County

13 School District.

14 Let me just say that the charter has not

15 alleged in its appeal that it did not get

16 cooperation or feedback from the district. In

17 fact, it's clear that it did. And without

18 belaboring the chronology, the chronology of

19 events is clearly set forth in our brief as to

20 the amount and extent of feedback.

21 Also, in the transcript of the

22 December 17th board meeting, Mr. Golden, Pastor

23 Golden specifically stated he had confidence;

24 he said I have the utmost confidence in the

25 staff and the people that I have been working


44
1 with. So he has expressed he did get -- he has

2 confidence in the staff and the feedback that

3 he got. So this statement that he didn't get

4 feedback timely is incorrect.

5 GOVERNOR BUSH: Why don't we -- all this, to

6 me, is a little into the weeds, to be honest with

7 you, the dates and all that. I think we are

8 passed that.

9 Perhaps you could discuss the tangible

10 concerns you have about this application and

11 their ability to teach kids.

12 MR. SHAPIRO: Yes, I certainly will.

13 We addressed this in the letter dated

14 January 30, which is the superintendent's

15 letter; that would be Exhibit 8 to the

16 charter's appeal.

17 In that letter we stated very clearly what

18 our problems were. And I may state that we

19 addressed these criteria based on what the

20 standard application is that was provided by

21 the DOE; those are the guidelines we used.

22 Specifically, the first problem is the

23 mission. And as was stated, there were three

24 distinct applications here.

25 The mission varied significantly among all


45
1 three applications.

2 In the third application, it was described

3 as an entrepreneurial and World of Work

4 strategy for the students. Now that needs to

5 be emphasized, these are K through three

6 students. These are not high school students;

7 so it was determined by the committee that this

8 was an inappropriate mission for a school

9 that's dedicated to K to three.

10 And the applicant was asked to explain

11 this and how it would apply to K through three

12 children, and there was no response

13 forthcoming.

14 The curriculum was another thing. The

15 description of the curriculum did not provide

16 an overview of the curriculum objectives and

17 content of the main subject areas.

18 The first application did not even

19 identify a curriculum. The second one made

20 reference to the district's curriculum, which

21 is the Kaleidoscope. But the most important

22 thing again is the third curriculum which did

23 not -- did not have any connection between the

24 mission, which is entrepreneurial World of Work

25 with the curriculum. So the curriculum was


46
1 really never fleshed out.

2 The next issue was student -- I would like

3 to get Harriet Moore, who was the panel review

4 person, to talk a little bit more about

5 curriculum because that's key.

6 Student population. The application did

7 not ensure that the enrollment would be open to

8 students districtwide. In fact, they targeted

9 the population immediately around this charter

10 school.

11 And it must be remembered that we have

12 eight charter schools in Manatee County. We

13 have 38,000 students. Within a 2-mile radius

14 of this proposed school, there are six

15 elementary schools, one of which is a charter.

16 And there was -- the problem with this was

17 that --

18 GOVERNOR BUSH: How do you have six

19 elementary schools within a 2-mile -- they are

20 small, I guess?

21 MR. SHAPIRO: Yes, we have six elementary

22 schools, one of which was a charter. And, in

23 fact, the charter school we have is within four

24 blocks of this proposed charter school. So this

25 isn't exactly an underserved area.


47
1 Transportation. The first application

2 said they were going to use vans which were

3 unapproved by Florida Statute. And the second

4 two applications there was absolutely no

5 addressing of transportation of students

6 whatsoever.

7 And there were a number of other areas

8 that were addressed in the superintendent's

9 letter which is Exhibit 8 to the appeal that

10 demonstrate that there was good cause for the

11 denial of the application.

12 I would like to call Harriet Moore, if I

13 may, to amplify some aspects of the denial

14 because she was in charge of the review panel.

15 MS. MOORE: Hi, good morning, Governor and

16 Cabinet Members. My name is Harriet Moore, I am

17 the program specialist for charter and contracted

18 schools in Manatee County.

19 And as I stated previously, when I came

20 into this position, I came from a charter

21 principal position; so I really understand what

22 it takes to get a charter school up and

23 running.

24 GOVERNOR BUSH: Which one was it?

25 MS. MOORE: Richard Milburn Academy. And I


48
1 had two weeks to get it started, and we were able

2 to do that and manage it, and we have an excellent

3 program.

4 I also want to emphasize that Manatee

5 County, one of the reasons I came into this is

6 because of the relationship between Manatee

7 County School District and our charter schools.

8 They have really embraced that concept and been

9 a charter friendly district.

10 And I have heard some of the nightmares in

11 some of the other places, so I am really glad

12 to be there.

13 With respect to some of the issues that I

14 think are really pertinent as it relates to

15 this particular applicant is the fact that

16 there was a lot of inconsistency throughout the

17 process. We were always open and available to

18 provide whatever was needed to any of our

19 charter applicants as well as our current

20 charter schools.

21 The curriculum changed so often that what

22 we were trying to do was say: Okay, give us

23 specifically what it is you are trying to do so

24 we can work with you in order to make sure that

25 all of the children are receiving what they


49
1 should be in terms of a good, solid, sound

2 education.

3 We were unable to get that information and

4 we did ask and we did list a number of areas

5 that we would be able to help them provide

6 technical assistance.

7 We do that for all the charter schools.

8 We do it for people from other counties that

9 call us with questions about the do's and

10 don'ts of charters.

11 I think the most important thing that I

12 want to emphasize here is that when we talk

13 about leaving no child behind, that means that

14 we as a district must be accountable to all of

15 our schools -- not just our regular schools,

16 but our charter schools as well.

17 And in order to do that, there are some

18 areas that we have to scrutinize to make sure

19 that we are doing what it is that you expect us

20 to do as a school district.

21 And in all fairness, we have said that we

22 are willing to spend this year working with any

23 applicant that wanted to try to apply to have a

24 charter school in Manatee County District, but

25 they have to be sound and they have to be


50
1 prepared to provide a good, solid education and

2 following all of the statutes that do fall into

3 charter schools.

4 GOVERNOR BUSH: Thank you. Any questions?

5 COMMISSIONER CRIST: You were going to

6 elaborate on the curriculum?

7 MS. MOORE: Basically, just to clear up,

8 there was a mention in application number 2 that

9 the Kaleidoscope curriculum was mentioned, which

10 is the district's curriculum that we use. But it

11 was just mentioned, and there was no information

12 in terms of how it would be used.

13 The statutes say that charter schools must

14 be innovative in their approach. If they are

15 going to use the same curriculum and do the

16 same things, then there really is no innovation

17 going on there at all. There is no difference

18 in terms of how are you going to do it a little

19 bit different or a little bit better or a

20 little bit -- invite some other things?

21 For example, we have schools of arts and

22 sciences that have really taken a different

23 approach to education, and some of them do use

24 some of the Kaleidoscope as their core

25 curriculum.


51
1 In the first application there was no core

2 curriculum at all; and in the third, again, we

3 were told about the third curriculum in the

4 panel meetings discussion with the applicant.

5 We hadn't received that yet; it just came up in

6 the discussion.

7 Second, we did provide feedback at the

8 review panel meeting with all of the members

9 present to the applicant right then and there

10 on what some of the issues were. Even though

11 there was a typographical error in terms of the

12 letter getting out, the information was

13 provided right there on the spot.

14 COMMISSIONER CRIST: Could either of you I

15 guess address the financial standing of the

16 applicant, if that's a concern or not?

17 MS. MOORE: It was definitely a concern. The

18 first application, our finance director did note

19 some areas that were inconsistent. Some of the

20 salary structure, there were positions that were

21 named throughout the application, but they were

22 not identified in the budget area.

23 There was some issues regarding the

24 personnel within the budget and also in terms

25 of, not just staffing, but how materials would


52
1 be purchased.

2 And it just wasn't realistic in terms of

3 that.

4 The second application I believe

5 approached that a little bit better because the

6 applicant did have a chance to work with myself

7 and the finance director.

8 By the third application, it was almost as

9 if they reverted back to the first one, the

10 first budget.

11 So there really were some concerns about

12 that.

13 And also, if the $150,000 start up was the

14 key to making this move, then certainly we are

15 going to have some concerns of how you are

16 going to be stable; once you get that and you

17 expend it, whether you do it on curriculum

18 development, whether you using it to start

19 building a building, whether you are using it

20 to buy materials. That's not a lot of money to

21 begin that process, so how are you going to

22 maintain that type of stability?

23 We were told there were some proposed I

24 guess contributors, but there was no indication

25 of how much people were going to contribute and


53
1 whether that was going to be substantial to

2 make the school stand and be financially

3 stable.

4 COMMISSIONER CRIST: Thank you.

5 GOVERNOR BUSH: Can we ask the reverend to

6 come back and do a little rebutting. It looked

7 like he was anxious to do it.

8 REVEREND GOLDEN: Thank you. Thank you,

9 Governor Bush.

10 GOVERNOR BUSH: If you could briefly go

11 through some of these issues that are specific to

12 the -- the work-related issues for K through

13 three, the financial aspect, transportation,

14 questions on the curriculum, rather than the dates

15 and who responded when, it would be good.

16 REVEREND GOLDEN: There has been an

17 application process that has been ongoing and

18 fluid, and to characterize what we have presented

19 as three different applications --

20 GOVERNOR BUSH: Don't worry about that.

21 Forget all the procedure stuff and focus on the

22 tangible issues that will impact children, should

23 you be operating a public school.

24 REVEREND GOLDEN: The curriculum issue has

25 been mischaracterized.


54
1 We have said in our correspondence dated

2 the 21st our core curriculum will have its

3 foundation in the Kaleidoscope primary and

4 intermediate documents designed and currently

5 being used by the district.

6 Mrs. Moore is correct, in the initial

7 presentation I only put in there Voyager, which

8 is a supplementary curriculum. I am not a

9 educator. I put in the application what I

10 discussed, thinking it was sufficient.

11 The same problem occurred with respect to

12 the finances. We sat down and calculated the

13 FTE for 20 students -- for 40 students for the

14 first year this school would be operating. I

15 put that number down for the second year and

16 the third year in my -- in the initial

17 presentation without taking into account the

18 increase in students.

19 I am not an accountant either. When I

20 went back with my amended application, I did

21 have people to help me to improve the

22 presentation that had been made. That was why

23 we listed there the Kaleidoscope. We were not

24 going to stop the Voyager. We were going to

25 use the Kaleidoscope.


55
1 The question was: How is that going to

2 make your school unique? And it was in the

3 third presentation that we made that we said:

4 We are trying to create a technology

5 information related elementary process. What

6 we are trying to do is to bridge the digital

7 divide.

8 This school that I am trying to put in the

9 middle of these six schools that they say are

10 within 2 miles, I just invite you to look at

11 the map. And whether they are within 6 miles

12 or not, none of the children within a 2-mile

13 radius of the site of this school are able to

14 go to any of those schools. The children in

15 this community that I am trying to serve are

16 being bussed beyond those schools.

17 GOVERNOR BUSH: You are kidding me.

18 REVEREND GOLDEN: No.

19 GOVERNOR BUSH: Six schools within 2 miles of

20 your proposed facility, and none of the kids in

21 that neighborhood go to any of those six schools?

22 That's hard to believe.

23 REVEREND GOLDEN: In the materials that I

24 have presented to you there is a map, that is the

25 elementary school map that is attached to the


56
1 material in section one -- that's why -- that's

2 why the -- there is a map that's attached to the

3 addendum that I have prepared. And that map shows

4 you --

5 GOVERNOR BUSH: We got it.

6 REVEREND GOLDEN: Yes, that shows you the

7 elementary schools that are there, the public

8 elementary schools that are there that -- and the

9 children that I am trying to reach are in those

10 four little blocked out areas up there near the

11 river.

12 And those children in this area are bussed

13 to Prime, Moody, Bayshore Elementary, and I can

14 never get the fourth school down, I can't --

15 but they are bussed 25 and 30 minutes every

16 day.

17 There is no school in this community that

18 these children attend. They do not attend

19 Manatee Elementary. They do not attend Ballard

20 Elementary. They do not attend the new school

21 that was built less than two or three years

22 ago.

23 As a matter of fact, every child --

24 GOVERNOR BUSH: Help me out here. This map,

25 do you have --


57
1 REVEREND GOLDEN: May I approach?

2 GOVERNOR BUSH: Yes, sure, I am not a judge.

3 You can approach the bench. Show me where is your

4 location?

5 REVEREND GOLDEN: My location is in the heart

6 of this area right here.

7 GOVERNOR BUSH: That can't be 15 minute or 20

8 minutes. Is that a long way away?

9 REVEREND GOLDEN: Yes, these are the schools

10 the children go to. Sea Breeze, which is here,

11 Bayshore which is down here, Kline which is here

12 and Moody; they don't go to any of the schools

13 that is nearest to them.

14 And they have not, Governor, they have not

15 gone there for the last 10 years, since the

16 elementary school that was closest to this area

17 was closed. There was an elementary school and

18 a middle school that was closed in that

19 community and has been closed.

20 I did everything that I possibly could to

21 try to get another elementary school back in

22 that particular area and failed in that and

23 this is -- this is my effort to try to put a

24 charter school in an area where every child in

25 Manatee County can go to an elementary school;


58
1 some of them can walk to an elementary school.

2 GOVERNOR BUSH: That's not helpful, Colleen.

3 You wiped out the place where the school is. It's

4 on the corner there. Turn it.

5 There. Thank you.

6 REVEREND GOLDEN: The area I am trying to

7 impact is this area right here. These children

8 are bussed from here, to this school, to this

9 school, to this school.

10 GOVERNOR BUSH: Okay.

11 REVEREND GOLDEN: And what I am --

12 GOVERNOR BUSH: Any other issues related to

13 what the school board said that you would like to

14 give a different opinion on?

15 REVEREND GOLDEN: Yes, sir.

16 The financial structure, and I want to

17 point out that the construction of the building

18 that will house the school is a function of

19 rental property that this church owns. We are

20 going to be able to build this building. We

21 are going to be able to build this building.

22 The question for me as a steward of the church,

23 do I build a smaller building simply to serve

24 the needs of the church, or do I build a

25 building large enough to try to serve the needs


59
1 of the community?

2 GOVERNOR BUSH: What would you use the

3 150,000 for?

4 REVEREND GOLDEN: In the first year we would

5 be using it to deal with -- first of all, we need

6 it in the first year but the second and third

7 years, our population will increase, and so that

8 will be made up by the FTE.

9 The first year, I need it to do just what

10 they say my weakness is. I need help to pay

11 some people to help me to develop this

12 curriculum and to integrate it. We do not have

13 an information technology curriculum in Florida

14 that begins K through three. What we are

15 about, what we are going to try to use was the

16 one from Texas.

17 GOVERNOR BUSH: Which one, the Voyager?

18 REVEREND GOLDEN: No. The Voyager is another

19 component, another after school. This is the

20 Texas --

21 COMMISSIONER CRIST: Texas Essential

22 Knowledge.

23 REVEREND GOLDEN: Yes, sir. It's the

24 Texas -- and it is a curriculum that they have

25 already developed K through three that we were


60
1 going to -- Dr. Godwin, we were going to try to

2 modify it, and to create the curriculum and to get

3 the people together to implement this here.

4 The reason I cannot give you a curriculum

5 is because we are trying to develop one.

6 GOVERNOR BUSH: I understand.

7 REVEREND GOLDEN: What we had thought we had

8 done, after three tries, was to at least say:

9 This is the direction in which we are heading. We

10 have got too many children, first off, being

11 physically divided; and now we are about to have

12 another generation of children that are not going

13 to be able to bridge the digital divide.

14 That's what we were trying to bring into

15 this community to those schools. There are --

16 there are 260 students that get bussed out of

17 this area every day. And we are simply trying

18 to reach a third of them. I am just --

19 GOVERNOR BUSH: Commissioner Bronson.

20 COMMISSIONER BRONSON: Reverend, I guess

21 there is two things I needed to find out.

22 You made a statement earlier this was the

23 last gasp effort to get this school going. But

24 yet, all indications are you are not quite

25 there to open the doors this year.


61
1 Do you mean that if you don't get it this

2 year, that you are not going to apply for next

3 year?

4 REVEREND GOLDEN: I mean that as I had been

5 told by the Department of Education staff, there

6 is a -- there is a federal grant that helps

7 charter schools with startup costs. This year

8 there is $150,000 that's available. No one knows

9 if or whether or how much of that would be next

10 year.

11 I am already belabored with trying to

12 build the building and deal with the fund

13 raising that's essential to building the

14 building; then to also go into the same

15 community and try to replace a $150,000 that we

16 have built into our budget beginning this year.

17 And what I am concerned with is, as the

18 school board has aptly pointed out, this is a

19 difficult situation financially anyway. I need

20 all of the resources that can be made

21 available. Not just to borrow, but to help

22 from the Charter School Choice Office.

23 They are saying we can do this. They will

24 help me to have a presentation to the Manatee

25 County School Board by its next meeting. The


62
1 problem is the Manatee County School Board has

2 to simply accept the application because I

3 can't access that $150,000 without an approved

4 application -- not a charter, an approved

5 application.

6 GOVERNOR BUSH: You can't access 150,000

7 unless you got a charter, I hope.

8 REVEREND GOLDEN: You know what, I am so glad

9 you pointed that out, because I honestly believe

10 in my heart, I didn't come here to make a show.

11 That is what one of the real concerns is. I can

12 access the $150,000 if my application has been

13 approved. I know that.

14 GOVERNOR BUSH: I can't believe the federal

15 government would give you $150,000 with an

16 approved application rather than a signed charter

17 contract.

18 REVEREND GOLDEN: If you really want to know

19 what is problematic right here in terms of -- you

20 see, I met with your aides, I met with your aides

21 last week. You see what I am saying? And the

22 problem is that they are aware of that. That's a

23 real problem.

24 If you say to me today: Reverend, we are

25 going to send you back with our blessing, it is


63
1 entirely possible that I could go back there

2 and waste $150,000 and not get a charter

3 contract.

4 But I am here to tell you on my oath as a

5 minister, as an attorney, as a man, I do not

6 intend to go back and travel that path. If you

7 will give me the opportunity, that $150,000

8 will be well spent and it will result in a

9 charter contract between the ABC School and the

10 Manatee County School Board.

11 I would like to close because there has

12 been some concern about well, will we work

13 together? You need to understand we are a

14 small community down there. Ms. Edwards, the

15 assistant superintendent for academic affairs,

16 serves on the Central Community Revitalization

17 area that we just created down there. We are

18 working on another project as we speak now,

19 trying to take advantage of the designation

20 that we recently received. And I want to thank

21 you for that.

22 We have been designated in that same area

23 as a front porch community. So we are working

24 on things; Dr. Patricia Lucas and I serve

25 together on the board of directors for Manatee.


64
1 The superintendent of the school there and I

2 served together on the board of directors of

3 Meals on Wheels. It's not like you got some

4 blood battle going on here. We just really

5 need to have some higher intervening authority

6 to get us beyond this impasse.

7 GOVERNOR BUSH: I appreciate you coming. You

8 made a very compelling case.

9 I have a question for the department,

10 which is: Why are we dealing with this at such

11 a late date? If all this discussion took place

12 in January, we are in mid to late May; it's

13 getting late. It's hard to start up from

14 scratch these schools. There should be some

15 cut off point where we say: Look, irrespective

16 of what the process is, we can't go beyond the

17 certain date because it puts the school

18 district, the children and the applicant for a

19 charter in very bad position.

20 MS. McCAIN: Absolutely. My name is Diane

21 McCain. I am the director of the Choice Office

22 for the department.

23 In answer to your question, why we are

24 here, is because an appeal has been filed based

25 on the decision of the local school district by


65
1 the applicant.

2 Assistance was offered to Reverend Golden

3 previously, and he did not feel it was

4 necessary from the department.

5 We since talked and he is more than

6 willing to accept our assistance at this point.

7 Our offer to him is the same now as it was

8 previously, and that is as we do for all

9 applicants, we'll provide technical assistance

10 to the best of our ability. But time is very,

11 very short.

12 COMMISSIONER BRONSON: I guess my question

13 would be, once again, we are so late in this

14 process and trying to put out a curriculum that's

15 going to be accepted by the school district, and

16 also whether the school, Reverend Golden, is going

17 to get the 150,000 or not, that's still just one

18 small piece of this educational package.

19 And with all due respect, I believe what

20 you are trying to do, you are trying to

21 accomplish something for the children in your

22 particular area that have a need, but we have

23 seen schools that have put together full-blown

24 plans have problems, come back to us that we

25 have had to either accept doing away with the


66
1 school or whatever because they could not meet

2 those financial obligations and other issues

3 involved.

4 It just seems to me that it would be

5 better, the monies for charter schools I would

6 think are going to be available because of the

7 system and the need for changes in the school

8 system to some degree.

9 But it seems to me that getting a

10 full-blown plan with everything signed off and

11 ready to go for the next year, along with your

12 financials, would be much better than trying to

13 rush through and get this in and not be able

14 to -- to me, it would be worse for them to come

15 back and say you did not meet your obligations

16 and, therefore, it would hurt your chances to

17 reup your school for the next year or two.

18 It just seems like this is an awful late

19 date to try to put all this together at the

20 last minute.

21 MS. McCAIN: I was just going to say that I

22 understand it's a little unusual for us to have

23 made a strong recommendation as we did, but in the

24 technical assistance paper we provided we did

25 mention that the concerns we had were with the


67
1 budget, the curriculum and the school's mission.

2 We also have some concerns -- and again,

3 we meet almost daily with people with very good

4 intentions, and with all due respect to

5 Reverend Golden, I believe with all his heart,

6 he fully intends to accomplish great things for

7 students.

8 But $150,000, although Harriet said, is

9 not a lot of money, it's a huge amount of money

10 to our students. And the legislature has said

11 we are to be accountable for charter schools.

12 So we are going to be accountable in the

13 beginning or in the end when I am before you

14 and this is on an appeal about a closure.

15 So we recognize that the application needs

16 to be -- Reverend Golden and his application

17 needs great assistance from us, and we are

18 offering that.

19 The time frame, I totally agree with you,

20 is a very short time frame and that's really

21 your decision today. And at the end, there is

22 no guarantee that the local school district

23 will take your recommendation.

24 GOVERNOR BUSH: Can we ask the school

25 district to come back for a second?


68
1 Are you all willing to work with the

2 applicant for the next wave of applications,

3 whenever that would start again, October?

4 MS. MOORE: In our letter to Mr. Golden from

5 the superintendent's office, the closing statement

6 was that our recommendation was that he work with

7 the school district and the Florida Charter School

8 Resource Center to work on this year preparing for

9 next year, so we have opened that.

10 If they indeed want to resubmit for this

11 year, we would work with them to help them put

12 together an excellent application that would be

13 beneficial to students to open next year.

14 GOVERNOR BUSH: Can you also comment, the

15 question of are all the kids in this neighborhood

16 being --

17 MS. MOORE: No. In fact, we have the

18 assistant superintendent, Lynette Edwards, and I

19 am so glad you brought that up because I would

20 like to bring her forward to address that.

21 Ms. Edwards.

22 GOVERNOR BUSH: Very briefly, this is more

23 for my own curiosity.

24 MS. MOORE: You need to know that there is

25 some clarification needed there.


69
1 MS. EDWARDS: Good morning, Governor and

2 Cabinet.

3 I do want to acknowledge that the school

4 board is charter friendly and we always do

5 everything we can to help our charter schools

6 be successful.

7 As Reverend Golden indicated to you, we

8 serve on various things together and he brought

9 up the CCRA. And in my materials today, I have

10 a map that I was preparing to do a presentation

11 to the CCRA that I am willing to share with you

12 if you would like to have it.

13 GOVERNOR BUSH: Just real short, real simple,

14 this is really not -- it's kind of off the core

15 but --

16 MS. EDWARDS: I would like to indicate that

17 we have a school choice program. The map here

18 shows -- and if you just want to show them that, I

19 will do this in summary. The map here shows the

20 schools that Reverend Golden is talking about.

21 GOVERNOR BUSH: We can't --

22 MS. EDWARDS: 50 percent, and I have the data

23 with me, 50 percent of the students who are

24 targeted for the schools that are considered

25 pockets, 50 percent of those students don't even


70
1 attend those schools. Because of the School

2 Choice Program, parents are allowed to choice

3 their students back to other schools in the

4 district.

5 Many of those students are being choiced

6 back to some of these other six schools that we

7 are talking about, and some of them are being

8 choiced to even other schools outside of those

9 six.

10 GOVERNOR BUSH: Choiced, it's a verb now.

11 That's interesting. Making progress.

12 MS. EDWARDS: That's the key point. That

13 yes, there are pockets there and the little stars

14 on the map are really students, if you can see

15 those.

16 GOVERNOR BUSH: So you have full-blown

17 parental choice?

18 MS. EDWARDS: We have full-blown choice. And

19 parents -- of course, there is a system for that,

20 but each year they can apply to send their

21 students to other schools in the district. And

22 the data that I have shows that 50 percent of the

23 students that are zoned to these areas do not

24 attend those schools.

25 GOVERNOR BUSH: Okay. Thank you.


71
1 MR. SHAPIRO: Thank you.

2 GOVERNOR BUSH: Back to the question, you are

3 prepared to work with whoever --

4 MS. MOORE: If they decided they would like

5 to resubmit a letter of intent this year, then we

6 would spend the year providing whatever technical

7 assistance is required and needed for them to

8 submit an application before the board and the

9 panel for the upcoming next school year.

10 MR. SHAPIRO: In fact, Governor Bush, all the

11 correspondence always ends with that same

12 paragraph, that we are willing to do that in the

13 record.

14 MS. MOORE: If they would just take the time

15 and work with all of us to be able to get

16 something that's going to benefit the children.

17 GOVERNOR BUSH: Excellent.

18 COMMISSIONER CRIST: I think we are ready for

19 a motion.

20 GOVERNOR BUSH: What's the motion?

21 COMMISSIONER CRIST: The motion would be to

22 remand back to the board for denial but to

23 encourage the Reverend to continue to pursue this,

24 especially given the comments that we just

25 received from the district that they want to help


72
1 in the future in the next go around.

2 GOVERNOR BUSH: Is there a second?

3 TREASURER GALLAGHER: Second.

4 GOVERNOR BUSH: Any other discussion? Moved

5 and seconded. Without objection, the item to

6 deny -- remand -- say that again.

7 COMMISSIONER CRIST: Remand, recommending

8 denial.

9 GOVERNOR BUSH: -- remand, recommending

10 denial, is approved.

11 Reverend, we thank you for coming up; and

12 just from my own personal experience, it took

13 as one of the first six charters schools, the

14 Talfair and I, took us two and a half years.

15 And it was time well worth the effort to get it

16 right in the beginning; so I have total

17 confidence in your ability to garner the

18 support necessary to make this school work.

19 And I think you have a good faith effort

20 from the department to help you, and you don't

21 have to wait until next year to do that, they

22 can help you now. That's their job; and a good

23 faith commitment from the school board that is

24 charter friendly; they have a very good record

25 as it relates to charter schools, so we wish


73
1 you well.

2 I also want to make sure we recognize the

3 fact that Manatee County has -- Commissioner,

4 they won the best financially managed school

5 district on the planet or something like that?

6 COMMISSIONER CRIST: If not the planet, close

7 to it, yes, sir.

8 GOVERNOR BUSH: You are right, but it's

9 close, and we appreciate the efforts to really

10 focus on the classroom which is where the money

11 should be going.

12 COMMISSIONER CRIST: Most of the planet

13 anyway.

14 GOVERNOR BUSH: Maybe it's just the state.

15 Item 4.

16 MR. PIERSON: Item 4 is a request from the

17 Orange County School District to become a charter

18 school district with a proposal and a contract.

19 And Betty Cox will present for the department.

20 MS. COX: Good morning, Governor, Members of

21 the Cabinet, it's a pleasure to be with you this

22 morning.

23 The department is pleased to have an

24 opportunity to facilitate the Orange County

25 Charter School District proposal for you today.


74
1 We would like to open by saying that Florida

2 Statute allows this board to enter into

3 contract status with up to six districts, in

4 order for those districts to focus on to two

5 things: Increasing student achievement and

6 improving school management.

7 Now in looking at the Orange County School

8 District proposal, it has a major strength of

9 focussing on no-child-left-behind. And, in

10 fact, as they developed their proposal to you,

11 they have looked very consistently and

12 concertedly at the effort of their students so

13 that all students will achieve well and no

14 child will be left behind, and there will be no

15 gaps in achievement from various groups.

16 The superintendent of Orange County Public

17 Schools is Ron Blocker. And he has only been

18 there for approximately a little under two

19 years. And in that time he has dedicated and

20 shown himself to be a person who is highly

21 committed to student achievement. And not to

22 speak for him, but I would like to open with

23 just some parameters.

24 Orange County School District is not where

25 it wants to be with all of its schools. He is


75
1 going to talk to you about some data they have

2 that is very positive. And, of course, they

3 are pleased that they are on the right path to

4 improvement.

5 They have got some wonderful programs and

6 terrifically high-performing schools, but they

7 would like to have more of them. In the recent

8 FCAT results that came out, I had a chance to

9 talk to him this morning, he was pleased that

10 his reading scores were up, disappointed at the

11 pace of the growth.

12 So what we are focussing on with this

13 particular proposal is how can we go about

14 increasing the rate of improvement. Because

15 students in Orange County are doing better.

16 They are not doing, all of them, as better as

17 quickly as we would like and he would like.

18 He is here to talk to you today and has

19 brought a team to tell you about the process

20 they have gone through, the goals that they

21 have set, and specifically their

22 no-child-left-behind theme.

23 May I present superintendent Ron Blocker.

24 GOVERNOR BUSH: Welcome.

25 MR. BLOCKER: Thank you very much, Governor


76
1 and Cabinet. I appreciate the opportunity of

2 providing us to give you some important

3 information as relates to our application for the

4 charter district status.

5 This is an important and bold step for

6 Orange County Public Schools, no doubt, because

7 we are talking risks. We are literally

8 declaring, boldly declaring to the world and

9 others, whomever will listen, the ambitious

10 goals that we are embarking upon to achieve our

11 goals.

12 I am here to give you an overview of our

13 presentation, and with me is a team of members:

14 Susan Arkin, the chairman of our Orange County

15 School Board, is with us; also Debbie Manuel,

16 who is deputy superintendent for instruction,

17 she is our chief academic officer; and also

18 Henry Boekhoff, who some of you may know, who

19 is our chief financial officer. And we have

20 brought a parent with us, Mr. Jamal Mack, who

21 is an active PTA parent and was involved in our

22 charter district review.

23 During my tenure as superintendent I have

24 focussed on two primary goals, which one is to

25 increase the efficiencies in our


77
1 noninstructional areas and, secondly, and most

2 importantly, to focus on our core mission. And

3 both are related because those efficiencies

4 were there to support the core mission.

5 How are we achieving these ends? In the

6 business end alone, we are showing a stronger

7 accountability model to give the public the

8 assurance that we are a credible organization

9 working towards the right things. I

10 established oversight committees to review and

11 oversee the business areas of our operations.

12 And when appropriate, we want to move towards

13 privatization.

14 We are also partnering with the business

15 community for better results. And one example

16 of that is we have actually asked the Walt

17 Disney World Corporation to loan us a group of

18 executives, the very individuals who helped

19 them reevaluate and revamp their facilities

20 department, to do the same thing for ours and

21 it is bringing positive results already.

22 Most importantly though on the educational

23 side, we have emphasized reading from day one.

24 And we are trying to do it in several ways.

25 First, of course, we have developed a


78
1 literacy plan, a K through 12 literacy plan,

2 that we are involving not only our system but

3 the community. And what we are trying to do

4 with the community, using the theme of the

5 African proverb that it takes a village to

6 raise a child, we are trying to involve the

7 entire community in Orange County to focus on

8 the importance of children being able to read,

9 especially acquiring the reading skills by the

10 age of nine.

11 We did that by kicking off the program, by

12 inviting Reid Lyon, President Bush's reading

13 advisor, down to speak to several groups:

14 Teachers, administrators, and community members

15 that was broadly represented within the

16 business arena.

17 They all understood after Dr. Lyons left

18 the importance of children reading or acquiring

19 reading skills by the age of nine. Using that

20 focus, we have gotten several community

21 partners to help finance a major PR marketing

22 scheme to inform the entire community so that

23 when the parent leaves the hospital, meaning

24 from birth to age five, we want this community

25 emphasizing the importance of reading and doing


79
1 the things that support reading.

2 We also focus on the classroom. From day

3 one, we realigned our entire curriculum to

4 support reading and other achievement

5 indicators, so essentially what we did is we

6 took the standards, Sunshine state standards,

7 grade level expectations, other benchmarks, and

8 we aligned them with the FCAT, Stanford, and

9 other chiefland indicators that we use so that

10 when the teachers are in the classroom, they

11 are teaching to everything that is needed to be

12 measured.

13 We also support the classroom by whenever

14 there have been budget cuts under my

15 administration, not once has it touched the

16 classroom.

17 Whenever we have done budget cuts under my

18 administration, we have not touched the

19 classroom.

20 Whatever school cuts were made were

21 resource teachers outside of the classroom. We

22 kept the teachers in the classroom and

23 administrative cuts at the central level, to

24 the chagrin of some individuals.

25 GOVERNOR BUSH: That comes as a surprise to a


80
1 lot of people that are in your community.

2 MR. BLOCKER: We are very public in how we

3 do things.

4 We also brag about having some of the

5 lowest teacher/student ratios in the State of

6 Florida. I am pleased to say we have been

7 leaders in that over the last few years, and we

8 try to establish a competitive teacher salary

9 so that not only could we recruit top-flight

10 teachers, but that we could retain the quality

11 of teachers we have in place.

12 Now what was the results of our effort?

13 Well, your old state Department of Education

14 indicated we have the lowest administrative

15 costs in the State of Florida. Of course, I

16 think I have the best chief financial officer

17 in State of Florida.

18 And what did he do? He took that same

19 data and reconfigured it using the district

20 cost differentials. And even with the district

21 cost differentials, there were shifts in the

22 rankings of several schools in the state, but

23 we still came out number 1 of the 67 school

24 districts of having the lowest administrative

25 costs in the state.


81
1 The Association for School Business

2 Offices and the international organization

3 ranked our financial reports, giving them the

4 highest ratings; that placed us in 3 percent of

5 all the districts in the entire country.

6 We also have saved several millions of

7 dollars in our construction program, but let me

8 move into the instruction area.

9 I like to talk about what we have done in

10 reading and math and the basic achievement,

11 because that's what it all boils down to.

12 Since 1999, when you all started, you all

13 being the State Department of Education, et

14 cetera, started grading schools, we, of course,

15 eliminated our F schools like the rest of the

16 state; but since 1999, we have decreased the

17 number of D schools since 1999, we have

18 improved our grades in 40 percent of our

19 schools, and since 1999 we have doubled in our

20 higher performing schools which will be

21 operationally defined as A and B schools.

22 Just last year we increased school grades

23 of 30 schools; seven of them moved from C to A

24 and one even moved from a D to an A.

25 The most recent test data is not one I am


82
1 particularly pleased about because we still

2 have not matched the state average or exceeded

3 the state average, and that's one of the goals

4 we plan to do if this charter application is

5 approved.

6 But let me just say this: In the norm

7 reference schools, we increased at all grade

8 levels in both reading and math; and although

9 these were incremental increases in reading and

10 math, we did increase in grades 3, 4, 5, 7 and

11 9 in reading and grades 3, 4, 5, 6, 7 and 9 in

12 math, incremental, but it shows a trend over

13 the last few years of Orange County

14 progressively improving.

15 So we are geared toward the right theme

16 because we are creating an infrastructure that

17 supports achievement.

18 We also looked at how our scores changed

19 compared to the state. And even though we are

20 still analyzing the test data, we can report

21 that in math, our changes in scores were better

22 than or same as the state in all grade levels;

23 and in reading our changes in scores were

24 better than or same as the state in grades 4,

25 5, 7, 9 and 10.


83
1 Where we have trend data, the percent of

2 students scoring at achievement level three

3 increased in all areas in reading and in all

4 grade levels of math except grade 10. Again,

5 these are incremental grades, something that we

6 would like to make some significant

7 improvement, but we think we are on the right

8 path. So we are not as happy with them as we

9 could be. And you know what, charter school

10 district status will help us achieve that.

11 Because quite frankly, the charter school

12 district status will allow us to establish an

13 entrepreneurial spirit within our schools. Why

14 do we go that direction?

15 Well, we wanted to close the achievement

16 gap between minority and nonminority students.

17 We wanted to raise test scores to be at or

18 above the state and national averages, and we

19 wanted to make schools communities of learning.

20 And that's very important in Orange County, but

21 because of our overcrowding situation, we have

22 unavoidably large schools, so we have to create

23 communities of learning.

24 So essentially, we must create an

25 environment of educational entrepreneurship if


84
1 that is going to happen.

2 So the first thing I did was I formed a

3 task force. I asked the former mayor of

4 Orlando, the Honorable Bill Frederick, a

5 three-term mayor, so a very popular and

6 recognized public figure in the Central Florida

7 area, to chair this task force. The reason I

8 asked Mr. Frederick to do this is because I

9 knew he would look me in the eye and tell me if

10 it was a good thing or not.

11 Along with him we involved a publisher of

12 a local newspaper, the Apopka Chief, which

13 happens to represent a large rural segment of

14 our population; but it also represents based on

15 the last census the second largest city in

16 Orange County. It's a very fast growing area.

17 Also, the chairman of the Hispanic Task

18 Force that advises me, a member, a leader of

19 the local Chamber of Commerce, our teacher of

20 the year, and one of our high school

21 principals.

22 They reported several recommendations, but

23 the two that stuck out in my mind was, one,

24 that you should not replace one bureaucracy

25 with another.


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1 The second thing that stuck out in my mind

2 was you should stretch yourselves; don't give

3 yourself easy and achievable, easy goals to

4 achieve; stretch yourself. And even if you

5 don't reach those schools, you will improve

6 progressively.

7 So I took that to heart.

8 The next step, we actually formed several

9 communities of parents, teachers,

10 administrators; and the administrators were not

11 just school-based administrators, they were

12 district-based administrators, so they would

13 understand their role in removing the barriers

14 and making this happen.

15 And their task was to see how this could

16 happen, how we could pull this off.

17 They then reported their findings, I took

18 it to the school board, they approved it. So I

19 just want you to know we're aggressively

20 seeking charter status because we see it as a

21 way of helping us to raise the bar of

22 achievement and to raise expectation of

23 accountability within the entire organization.

24 Now I am going to ask the school board

25 chairman Susan Arkin to bring you some


86
1 additional information that you would need to

2 hear.

3 GOVERNOR BUSH: Thank you, Ron. Are you

4 going to go through -- would it be appropriate now

5 to ask you questions about the performance goals

6 or is someone else going it talk about that?

7 MR. BLOCKER: Someone else is going to talk

8 about it.

9 MS. ARKIN: Governor, Members of the State

10 Board of Education, because that's what you are

11 sitting as, as the Cabinet, I am the chairman of

12 the school board, Susan Arkin, and it's my role to

13 just give you kind of a picture of Orange County.

14 I know many of you know Orange County, but

15 just to give you the broad expanse of it. At

16 more than 159,000 students in grades K through

17 12, we are the fourth largest school system in

18 the state and the 14th largest in the nation.

19 That's a growing number because we get between

20 5- and 7,000 new students every year.

21 Governor, you especially know a fair amount

22 about us.

23 We have 195 school sites, including 104

24 elementaries, 27 middle schools, 15 high

25 schools, four technical education centers, four


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1 exceptional education centers and 30

2 alternative education sites.

3 We are the second largest employer in

4 central Florida with a work force of 22,000

5 full and part-time employees. 35 percent of

6 our teachers have advanced degrees.

7 And as we talk about no-child-left-behind

8 and the concept of where we want to be able to

9 go, and we think charter school district status

10 will help us, our students -- 44 percent of our

11 students are on free or reduced price lunch.

12 Almost 15 percent of our students are speakers

13 of other languages. 44 percent of our students

14 are Caucasian, 29 percent are black and

15 23 percent are Hispanic.

16 But that only begins to tell the story

17 because our students come from 162 different

18 countries and speak 105 different languages and

19 dialects. So we are a very diverse community;

20 richer for the diversity of it.

21 And as we look at those numbers and we

22 look at where we want to go as a district, the

23 fact that you have included in the school

24 grades the learning gains is really important

25 for us, and we thank you for both the state's


88
1 role in accountability and for the fact that

2 the state is growing as it looks at how to do

3 this.

4 GOVERNOR BUSH: The learning gains was part

5 of the 1999 law, it was just we needed a base.

6 MS. ARKIN: Absolutely. We are first in

7 seeing that happen. We give you full credit for

8 that. We thank you very much.

9 I would like to introduce Jamal Mack, who

10 is a member of the county council of PTAs in

11 Orange County and an active parent with his own

12 child's PTA as well and has been a part of this

13 process. And when Jamal is done speaking,

14 Deborah Manuel, who is the chief curriculum

15 officer, is going to talk about some of the

16 issues, Governor, that you just were going to

17 ask questions about.

18 So I would let Jamal come up here and just

19 close by saying thank you, there is a great

20 deal of support in the community that I heard

21 for doing this. And so I feel like I am

22 representing not just the board but the

23 community, and I thank you for this

24 opportunity.

25 GOVERNOR BUSH: Thank you. Mr. Mack,


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1 welcome.

2 MR. MACK: Thank you, Governor.

3 GOVERNOR BUSH: Where does your kid go to

4 school, out of curiosity?

5 MR. MACK: Lawton Chiles Elementary School in

6 Orlando, Florida.

7 I am a proud parent of a fourth grade

8 student, like I said, in Lawton Chiles

9 Elementary School in Orlando Florida, and I am

10 a very involved parent. I believe a parent has

11 to be very involved in the education of their

12 child.

13 As Ms. Arkin mentioned, I am serving on

14 Orange County Council of PTAs as a family

15 involvement chairperson and also the immediate

16 past president of the school's PTA.

17 I had the opportunity to serve on the

18 planning team for the charter school district

19 proposal. Members of this team included other

20 parents, community members, business leaders,

21 teachers, school and district staff, and we

22 spent many hours discussing this initiative.

23 We had three main tasks. The first one,

24 determine which statute, rule and regulation

25 would be included in the contract to be waived.


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1 Second, define the performance goals that

2 we felt were important to increase student

3 achievement.

4 Third, define the three-fold management

5 plan to include a communication component, the

6 waiver process component, and the monitoring

7 and evaluation component.

8 I was impressed by the fact that our

9 voices were heard, our opinions were valued,

10 and our suggestions were taken.

11 After we completed our work, the district

12 held meetings and made presentations about the

13 proposal. I attended one such presentation in

14 each learning community. I was excited to see

15 that the proposal reflected what our planning

16 team had worked so diligently on.

17 I am also proud to say the staff provided

18 extra time to answer every question asked and

19 provide phone numbers for follow-up questions.

20 Personally, I am glad my son will directly

21 benefit from this bold step that the

22 superintendent and the district have taken.

23 I am inspired to know that they are

24 utilizing every opportunity to raise the

25 academic achievement for every student in the


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1 Orange County public school system.

2 Thank you.

3 GOVERNOR BUSH: Thank you very much for being

4 here.

5 MS. MANUEL: Good morning. We submit the

6 contract for your consideration. Our school board

7 approved the draft on January 22nd, prior to

8 sending it to the Department of Education. This

9 is our accountability. And this contract is based

10 on results, not a process.

11 It includes 14 initial requests for

12 waivers from state statutes, and we see these

13 waivers as a base for our schools as they begin

14 to plan how to reach their goals.

15 The waivers include a way to assist in

16 retention of teachers, so that we can stabilize

17 their new work environment. They also

18 enhance --

19 GOVERNOR BUSH: Can you give me an example of

20 that?

21 MS. MANUEL: Yes, sir. The one waiver on

22 out-of-field teachers, that will help with our

23 funding because we get them approved, go through

24 all of our technicalities and formalities, but the

25 way the statute reads, you must have school board


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1 formal approval before you can count them for FTE.

2 And this way we can make sure they are approved

3 and count them for FTE. Let's say they begin a

4 week before the October FTE count. We'll get the

5 board approval maybe a week later.

6 The other way we want to stabilize the

7 work environment is to give them the three

8 years with us, stay in our classrooms to pass

9 the class exam. As it stands now, they have

10 one year to do that; and if they do not pass it

11 in a year, they must then lose employment.

12 They can go next door to Seminole County and

13 work a year. We would like to support them by

14 having the three years.

15 GOVERNOR BUSH: What percentage of the new

16 teachers don't pass the class, out of curiosity,

17 in the first year? Do you know?

18 MS. MANUEL: I am not sure what percentage.

19 I think mostly it is the tension of having your

20 first year of teaching and trying to prepare to

21 pass the class exam. We want to stabilize that

22 environment.

23 GOVERNOR BUSH: What we are looking at doing

24 is to take that out of your hands altogether and

25 make it a requirement for exit for --


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1 MS. MANUEL: Yes.

2 GOVERNOR BUSH: Isn't that what is being

3 discussed?

4 (Inaudible - microphone not used.)

5 MS. MANUEL: That way we can support them.

6 Also, when we provide that fiscal management

7 through some of the waivers, then that will

8 increase the dollars to the classroom, and then

9 give our principals some removal of some obstacles

10 and paperwork to enhance their ability to focus on

11 achievement of students.

12 One example that we tried already is a

13 waiver of the 135 hours for course credit. And

14 we use that to good advantage in our large high

15 schools with the four-by-four scheduling; that

16 we are able to match the sunshine state

17 standards and help them to achieve everything

18 required for a course but not necessarily have

19 to sit in a seat for 135 hours. That's another

20 one that we have in there.

21 GOVERNOR BUSH: Do you have an estimation of

22 how the difference, in terms of the hours, you can

23 accomplish the same thing in how many hours?

24 MS. MANUEL: In our high schools with a

25 four-by-four schedule, they can achieve one course


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1 credit in one semester; so rather than a whole

2 year of seat work, they can accomplish it in

3 one-half a year.

4 GOVERNOR BUSH: For double the time?

5 MS. MANUEL: Yes, it doubles their time.

6 GOVERNOR BUSH: What's the gain?

7 MS. MANUEL: They are able to look at more

8 courses for their credits and get a chance to have

9 the quality instruction that two hours with one

10 teacher gives them rather than moving every 50

11 minutes.

12 GOVERNOR BUSH: And you needed a waiver to

13 do that?

14 MS. MANUEL: We have one now, but with this

15 contract we are asking to continue that waiver.

16 GOVERNOR BUSH: Okay.

17 MS. MANUEL: We are then expecting our local

18 school advisory groups to look for more waivers

19 that will match the individual needs of their

20 community; and not just from state statutes but

21 also from our own school board policies. And we

22 feel that that will give them a chance to talk to

23 us about how we may be constraining them as well

24 at the local level.

25 The important part of our contract,


95
1 however, does include our 15 performance goals.

2 That's our part of the bargain. And we are

3 proud our school board has been a leader in the

4 state in setting their expectations for us.

5 One of the examples of our school board's

6 expectations is that all our children will be

7 literate and that they will develop the ability

8 to think independently.

9 So our performance goals are then built on

10 those expectations by our school board. And we

11 feel they are aggressive goals.

12 A couple of examples are closing that

13 academic achievement gap between minority and

14 nonminority students, increasing the percent of

15 students who show learning gains and improving

16 the percent of children reading by the age of

17 nine.

18 GOVERNOR BUSH: Can I ask a question?

19 On performance goal 1B, what's an NCE

20 unit? I am just -- I am not -- I don't

21 understand all these acronyms. What's that

22 mean?

23 MS. MANUEL: That is the --

24 GOVERNOR BUSH: This is the value added, the

25 annual learning gains. It says NCE units. Is


96
1 that something --

2 MS. COX: I have forgot the acronym.

3 MS. ARKIN: I have, too, but it's the only

4 vehicle available at the time this plan was

5 written for a statistical model for learning

6 games.

7 GOVERNOR BUSH: What's wrong with the FCAT?

8 MS. ARKIN: We didn't have it when they wrote

9 the plan. The learning gains data will be coming

10 out in the next several days, so they will be able

11 to adjust it to use the learning games, but they

12 didn't have it for this. They wanted to address

13 that.

14 GOVERNOR BUSH: Okay. So this is a --

15 MS. ARKIN: It's a Federal model for

16 establishing growth of earnings.

17 GOVERNOR BUSH: So you measured a base of

18 last year or year before last to last year?

19 MS. ARKIN: Yes.

20 MS. COX: It stands for Normal Curve

21 Equivalent.

22 GOVERNOR BUSH: Was it the norm referenced?

23 MS. COX: Norm referenced.

24 GOVERNOR BUSH: Thank you.

25 TREASURER GALLAGHER: Is there a plan to


97
1 change it and use ours?

2 MS. MANUEL: Yes.

3 TREASURER GALLAGHER: But we are going to set

4 the base at somebody else's or are we going to set

5 the base at ours this year?

6 MS. MANUEL: We'll look at the base that we

7 have this year with the annual earning gains being

8 added, correct.

9 GOVERNOR BUSH: You have last year's base and

10 this year's will be the first year --

11 MS. MANUEL: Right. We always make sure that

12 there is a correlation between those --

13 GOVERNOR BUSH: This is baseline data, it

14 says value added reading gains from the norm

15 reference test. ESE, for example, is 5.2. So

16 next year, what would be the expectation? I am

17 trying to -- I don't understand.

18 MS. MANUEL: We had the base in January.

19 Then we looked at where we want to be at the end

20 of three years. Then we had to say to schools:

21 This is what you are expected to gain in one year,

22 or each of those years, in order to get to our

23 goal to be above the state average and the average

24 of comparable districts.

25 So we are lining that up now to give


98
1 individual schools the exact goal they will

2 need to work on at their school in order to

3 meet that.

4 So when you see the baseline data, that is

5 our start and then we have to project from

6 there over the next three years.

7 GOVERNOR BUSH: It appears to me that these

8 are actual gains, not baseline. That's why I am a

9 little confused.

10 MS. MANUEL: Which one are you looking at?

11 GOVERNOR BUSH: I am looking at performance

12 goal 1B.

13 Gains is not baseline; it's the reference

14 over the base. It says the Orange County

15 public school system has a 2.7 unit something;

16 I am not sure what that is; and the other

17 groups, subgroups, are higher principally.

18 MR. BOEKHOFF: When you are looking at the

19 particular chart on page 34, you will see that the

20 value added mitigates -- the baseline for OCPS was

21 2.7. The last three or four years in our

22 district, we have been doing a regression analysis

23 where we have been trying to look at a value added

24 base to determine the amount of growth students

25 make in one year to the next, which is why the


99
1 data shows that.

2 GOVERNOR BUSH: Help me here. What's a unit?

3 Is a unit a year?

4 MR. BOEKHOFF: It's basically a part of the

5 normal curve equivalent. 2.7 units is actually

6 2.7 points in the sense, if you think of it that

7 way. The average value added reading gain for the

8 average student in OCPS was 2.7.

9 You can see where our racial ethic

10 subgroups made higher learning gains in both

11 reading and math compared to that total. That

12 would be the particular rate that they made

13 this particular year, that would serve as a

14 baseline.

15 GOVERNOR BUSH: I am trying to equate -- this

16 is -- you are way above me here. Try putting it

17 in English because there are actually -- hope

18 there are people interested in this because I

19 really applaud your hard work in looking at this

20 charter.

21 2.7 units, translate that into English in

22 terms of the growth. If the objective is to

23 get a year's worth of knowledge in a year's

24 time?

25 MR. XX: Yes; you started here, 2.7, you made


100
1 it here; 5.2 you made it here.

2 GOVERNOR BUSH: I got that part.

3 MR. XX: --value added learning gain. And

4 that would be the difference --

5 GOVERNOR BUSH: Translate it now in English.

6 Those are units. Units, is that close to -- put

7 this into a context of a year. Is it possible?

8 This is an abstract measurement, unless you put it

9 into something that parents and others can

10 understand.

11 COMMISSIONER CRIST: Governor, may I? Can

12 you tell us what one unit is?

13 GOVERNOR BUSH: You understand what I am

14 saying?

15 MS. MANUEL: It would be the number of units

16 above the average score. So if we look at our

17 children who stayed with us for one year in one

18 school, and the average score for those children,

19 then in the value added for those children who

20 stay with us, they are 2.7 above that average.

21 GOVERNOR BUSH: Wouldn't you think it would

22 be better to measure it based on, if it's value

23 added, which I interpret to mean annual student

24 learning gains is the same thing, right? That's

25 what we are talking about. Shouldn't you


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1 measure -- shouldn't the baseline be -- our

2 expectation is by in large, that a year's worth of

3 knowledge is acquired in a year's time, and so you

4 want to have as many children as possible, as many

5 students as possible, and breaking out by these

6 subgroups, achieve that objective.

7 Wouldn't that be a better performance

8 measurement than -- because under that

9 scenario, if there is no annual learning gains

10 for the larger group, and you have some

11 moderate learning gains, you may have achieved

12 the goal, but you may not have had a year's

13 worth of knowledge achieved in a year's time.

14 MS. MANUEL: That's why now we'll be looking

15 at the annual gains that you have given us with

16 this year's scores, because that is something that

17 speaks to us. And CE, as Betty said, was what we

18 had to use at the time.

19 GOVERNOR BUSH: So you are going to change it

20 to reflect annual student learning gains?

21 MS. MANUEL: Yes.

22 GOVERNOR BUSH: Wonderful.

23 TREASURER GALLAGHER: That would be higher

24 than what is expected annually; they don't have

25 any gain because they are so far below what the


102
1 state average is; in order to get up there, they

2 have to go above those annual --

3 MS. MANUEL: Yes, that's correct.

4 GOVERNOR BUSH: Yeah, but 10 years from now

5 those kindergarteners and first and second

6 graders, if they are achieving annual learning

7 gains of a year, they will be above the state

8 average and they will be leading the way. That's

9 my point. This is not a one year --

10 TREASURER GALLAGHER: No, but you've got to

11 concentrate on these kids at first, second, third

12 and fourth grade level in fourth grade.

13 GOVERNOR BUSH: We are going to get to that

14 too.

15 MS. MANUEL: Yes.

16 GOVERNOR BUSH: Absolutely.

17 MS. MANUEL: Just to finish up on the section

18 the reasons for our performance goals. The other

19 reason is to create that entrepreneurial

20 environment we discussed so that our principals

21 feel there is an ability to stretch themselves and

22 to look beyond any kind of a status quo or any

23 kind of rule that we may have had in place.

24 Then in addition to our annual report in

25 which we show progress toward our performance


103
1 goals, we will make a report on the specific

2 waiver and the amount of funds that we saved

3 with that waiver.

4 We will include in the report how we use

5 those funds, and we will have an outside

6 auditor document and verify our calculations.

7 So our contract and the goals are

8 applicable to and consider the needs of all our

9 children, no-child-left-behind.

10 Any other questions on our performance?

11 GOVERNOR BUSH: I would like to commend you

12 on one of your performance goals that I think is

13 critical, which is the percent of the ESE kids who

14 graduate with standard diploma. And just the

15 focus on making sure that the whole -- in an

16 effort to move -- what we don't want to have is a

17 performance orientation that then is -- that the

18 smart people that can manipulate the data suggest:

19 Here's the way to get around some of this, is to

20 push more people into ESE; that should not be the

21 end result of this.

22 If no child is to be left behind, that

23 includes every kid that's not necessarily

24 included in the grading of schools. The

25 federal law is going to require that and you


104
1 all have shown good progress, it appears to me,

2 if I understand these NCE things with

3 exceptional ed kids.

4 So I would urge you to continue on that

5 path because that could be a model for the rest

6 of the state as well.

7 MR. BLOCKER: Thank you.

8 Before I turn this over to Betty Cox, I

9 would like to close by summarizing that this is

10 a bold move; this is a big risk for us because

11 the essentially we are removing all the reasons

12 and excuses we would need to say that we would

13 have problems. But this is going to prove that

14 higher achievement --

15 GOVERNOR BUSH: You promise?

16 MR. BLOCKER: -- in a high urban district.

17 Fingers crossed, Governor.

18 And we will keep a focus on achievement.

19 And it's something as simple -- if you talk to

20 a lot of urban principals, principals in large

21 urban districts, just to give you an example of

22 what this will do.

23 Principals tend to manage educational

24 processes, because there is so many things

25 going on. Because we are putting these


105
1 ambitious goals out there and measuring them on

2 that, they have now shifted from being a

3 manager of an educational process to a leader

4 of an educational process.

5 It removes us from being a very

6 process-oriented system to a

7 performance-oriented system, because

8 essentially we have performance goals we have

9 to reach. And we are moving the barriers in

10 order to help us reach those goals.

11 So that's why it's important to establish

12 that entrepreneurial spirit. We need the

13 flexibility, we need the barriers removed, and

14 we need to be able to focus with everything

15 else removed on the core mission.

16 So all those other things that we are

17 doing, the business of moving toward

18 privatization and looking at business

19 oversight, that's important and it will support

20 the classroom. But the charter district status

21 will allow us as an entire system to maintain

22 that focus. So it will work in Orange County.

23 And I just believe that these are

24 ambitious goals, but as Bill Frederick's task

25 force said, stretch yourself, and that's what


106
1 we are about.

2 TREASURER GALLAGHER: Before Betty Cox comes

3 up.

4 GOVERNOR BUSH: I have a question, too.

5 TREASURER GALLAGHER: There is one of the

6 things missing, and I don't want to put you in the

7 position Hillsborough is in with goal six

8 conversions and have a hard time reaching those

9 but I don't want to see zero either. So how about

10 if you guys come up with at least one; you got

11 three years to do it?

12 MR. BLOCKER: That I guess on the surface

13 looks like something that is achievable, but the

14 problem I would have is what we are presenting, we

15 put a lot of thought in evaluating and really

16 scrutinized, and we feel confident, or at least

17 comfortable with the ability to control the

18 factors.

19 I don't know enough about that, but I can

20 assure you this: That I think our track record

21 will show you that if -- since the law talks

22 about the conversion schools should -- because

23 your aide brought it up, I've had a lot of time

24 to think about this -- your aide brought it up

25 last week, and on the way back I thought how


107
1 could this happen?

2 And it can happen by us not being a

3 barrier ourselves. But essentially if the

4 community wants this, we can work with them to

5 facilitate that.

6 But I don't know the type of -- the reason

7 I mention that is because I heard stories of

8 other districts -- Hillsborough, Dade, it

9 doesn't matter -- obviously there is some

10 issues there that need to be dealt with, and I

11 don't know what resources need to be aligned in

12 in order to be able to do that.

13 So I wouldn't want to make an assurance to

14 you publicly like this, but the assurance I can

15 say is if you look at Orange County, we have a

16 great relationship with 14 charter schools. We

17 support them well, and we will not have a

18 problem working with the community if the

19 community wanted to do that.

20 TREASURER GALLAGHER: If you look at it, a

21 conversion is exactly what you are asking us to

22 give you; is you giving to a community school that

23 same contractual opportunity.

24 And so all I am saying is that over a

25 three-year period, if you wanted to, you could


108
1 encourage at least one of your many -- how many

2 hundred schools do you have?

3 MR. BLOCKER: 160 schools.

4 TREASURER GALLAGHER: -- to become one. And

5 if you don't have it in there as a goal, then it

6 won't be encouraged. And if you do have just one

7 in there as a goal, you will encourage it to

8 happen over a three-year period.

9 MR. BLOCKER: But I wouldn't want you to

10 second guess our community. We have a very

11 diverse community and a very active community and

12 a very creative community, pockets of it working

13 towards different things in their areas.

14 TREASURER GALLAGHER: And if all of that is

15 true -- I certainly believe you -- then a part of

16 that community will look at the advantage that you

17 are trying to gain from us so that they can gain

18 that same advantage from you and be able to grow

19 and prosper without all those pressures from the

20 county organization.

21 MR. BLOCKER: That's why I wouldn't want to

22 require it of them.

23 GOVERNOR BUSH: It's a goal.

24 TREASURER GALLAGHER: It's a goal. We are

25 not going to close you down; it's a goal, one;


109
1 just one.

2 MR. BLOCKER: We can work with you on that.

3 GOVERNOR BUSH: I think that's a yes.

4 MR. BLOCKER: Qualified yes, because there

5 are a lot of question marks out there.

6 TREASURER GALLAGHER: Let's put it this way:

7 You got my vote if it's a yes. Qualified, you get

8 a qualified vote.

9 GOVERNOR BUSH: What we are talking about

10 here is a -- these are -- all of these goals,

11 these are performance goals and that one is not

12 nearly as a stretch as some of the performance

13 goals that you have here. If it doesn't happen,

14 we don't have -- there is no hammer.

15 And I think Commissioner Gallagher's point

16 is, I guess we could -- when we review the

17 charter contract, we could say: Well, we'll go

18 back to our old relationship. What

19 Commissioner Gallagher is saying is if it's

20 included in it, it might actually encourage a

21 community to say give us a chance to convert to

22 a charter status, in which case you have to

23 negotiate -- there is -- it's an open-ended

24 relationship, so I am -- I don't think -- I

25 know you are being cautious here, but I don't


110
1 think you are jeopardizing your community

2 input, which was very valuable.

3 One of the best parts of the charter

4 district process is to listen to parents and to

5 others, and hopefully that will be an on-going

6 basis. I don't think you are putting yourself

7 in a wrong position by accepting Commissioner

8 Gallagher's --

9 MR. BLOCKER: I like the part you said, it

10 wasn't a hammer.

11 The reason I exercise caution, because the

12 way we involve our community, even though the

13 idea was driven from the top, the how was

14 driven from the bottom.

15 And the difference I see there is if I go

16 back and require somebody to be a conversion

17 school, that's me driving it from the top. But

18 if the community says: This is what we want to

19 do, then what I am saying is I am willing to

20 put the resources and the infrastructure in

21 place to work with them.

22 The difference is this good application we

23 have is literally driven from the people. And

24 I didn't want to be chopped down on that.

25 So I am hearing you are right, you are


111
1 saying you are not using a hammer and be opened

2 minded about it, you got a superintendent that

3 is willing to be open-minded about it.

4 TREASURER GALLAGHER: Let me just say that

5 the concern I think I have -- I won't speak for

6 the rest -- is that we have seen a movement from

7 the bottom of a school, a principal, the teachers,

8 the parents, all very interested in having a

9 conversion. And it gets stomped at the school

10 board level.

11 And so what we want to do is see to it

12 that the top is willing to look, because they

13 have contracted with us, to look; and if it

14 comes up, there is going to be a positive

15 feeling on the board and with the

16 superintendent as opposed to what we have seen

17 as negative, is the best way I can say it.

18 GOVERNOR BUSH: Thank you. I think it's a

19 yes.

20 Can I ask one more question. This relates

21 to the recently signed school code rewrite

22 where the social promotion rules were modified.

23 And I was curious to know, I didn't see any --

24 it's kind of a negative performance goal, so I

25 could see why you wouldn't want to put it in


112
1 there.

2 But what is the strategy as it relates to

3 dealing with the gap between kids that are

4 being held back and the kids that are reading

5 at level one in third and fourth grade?

6 MR. BLOCKER: Well, first --

7 GOVERNOR BUSH: Because you've got a pretty

8 big number there that's not uncommon with the big

9 urban school districts.

10 MR. BLOCKER: Obviously, we are going to

11 follow the law as reference to the retention

12 policy as it stands in the State of Florida.

13 But the conversations I had with my school

14 board is if by policy you all fix the road,

15 then staff needs to deal with the potholes.

16 And in this particular case, I would say that

17 when we go after, aggressively go after the

18 achievement gap, a lot of things are going to

19 fall in place.

20 Because you are talking about moving kids

21 out of level one above; you are looking at

22 moving more kids in the level three and more

23 kids from level three above.

24 There is a lot of things ancillary to

25 that. You are talking about numbers of


113
1 minority children and your honors and AIP

2 classes; you are talking about kids that --

3 giving everybody the chiefland focus. So I

4 believe when you focus on all the right things,

5 other things will fall in place.

6 GOVERNOR BUSH: Specifically, though, going

7 forward next year, there is the potential if --

8 what I would hope would happen is that there be an

9 assessment, diagnosis, remediation cycle that

10 starts in August and never really ends so that we

11 lessen -- because it's a huge issue, and it's been

12 pointed out I think rather eloquently by your

13 newspaper, what the challenge is, and it spurred

14 us into action, to be honest with you, and I think

15 we all have to respond.

16 MR. BLOCKER: We have been working on this

17 for the better part of the year, so I will let

18 Dr. Manuel share that with you.

19 MS. MANUEL: We have in our academic

20 expectations that the superintendent is rolling

21 out that we will look at every level one child,

22 we'll assess where they are. The AIP, Academic

23 Improvement Plan, is already in place; we'll write

24 that for every one of those children.

25 What we are going to also point out to


114
1 schools is the flexibility they have in

2 increasing time. They must find an alternative

3 way to teach reading, by giving them more time,

4 first of all.

5 We have a new focus on the methods we use

6 to teach reading. And then in our urban

7 schools, the superintendent started an urban

8 cohort group to really focus in on our most

9 at-risk children, look at the types of teachers

10 we hire there, give principals an opportunity

11 to have first choice for the best teachers for

12 those schools, and so on.

13 GOVERNOR BUSH: Excellent.

14 TREASURER GALLAGHER: Teachers of those

15 schools get additional money?

16 MR. BLOCKER: We are working through some

17 things now. We are finalizing a study of that,

18 but our review of it shows we had to do things

19 differently at those schools. We had to -- but

20 money is only part of it.

21 A teacher grows professionally and

22 appreciates what they are doing when they feel

23 supported and when the environment supports

24 them. In other words, people want to like

25 where they work.


115
1 The kids aren't the reason there is a high

2 turnover at those schools sometimes. So we are

3 looking at dealing with the total environment.

4 So we have been focussing on what we call the

5 Urban Cohort for the most of this year; we have

6 actually torn it apart, talked to every

7 principal, surveyed the teachers, worked with

8 them, did some additional evaluation of them

9 and back to them.

10 They have already formed sort of a

11 fraternal comradery amongst themselves to help

12 support themselves.

13 And we realize at the district level we

14 are going to have to realign some resources in

15 order to provide that. We are very serious

16 about achievement, and we are looking at the

17 areas where we are having problems and we are

18 hitting all of those areas.

19 GOVERNOR BUSH: Commissioner.

20 TREASURER GALLAGHER: One of the things in my

21 opinion that you can do --

22 GOVERNOR BUSH: Go ahead.

23 TREASURER GALLAGHER: All those things are

24 important; there is no doubt about it. But I

25 think the incentive for people to want to


116
1 participate in all those things -- because that's

2 work; everything you said there is work, for the

3 principals and for the teachers. And it's a whole

4 lot of additional work than it is in one of the

5 suburban schools that the parents are involved in.

6 And so what we have done -- and it's

7 tough -- we have asked these principals and

8 these teachers to be parents, because they

9 don't have the parenting that some of the

10 suburban kids have. That's a lot of work.

11 It's a tremendous amount of effort. There is

12 some very dedicated people that are doing it

13 and I think they ought to get a financial

14 incentive for it.

15 MR. BLOCKER: I am not disagreeing with you.

16 TREASURER GALLAGHER: And I think that you

17 ought to include that in your plan.

18 There are teachers that aren't going to do

19 that, no matter how much you pay them, because

20 they can't take the challenge on. There are

21 others that are dedicated and willing to do it

22 and they ought to have some incentive there. I

23 think it should be part of that cohort.

24 GOVERNOR BUSH: Superintendent Blocker has

25 asked for a waiver for the collective bargaining


117
1 process.

2 MR. BLOCKER: You know what I was -- I didn't

3 want to get into too much detail on the record.

4 GOVERNOR BUSH: You have my full support.

5 TREASURER GALLAGHER: I think you will get

6 support from the unions to do this, because they

7 recognize it's additional work.

8 GOVERNOR BUSH: In fact, in some districts

9 that actually has been negotiated and the unions

10 have been very cooperative. It was just a joke,

11 in case someone --

12 COMMISSIONER BRONSON: Governor, I also, to

13 meet some of these goals that we have seen

14 outlined here; one of other issues that seems to

15 be coming a bigger player in Orange, Osceola and

16 Brevard County is the availability of ESAU

17 teachers; and especially the quality and those who

18 are willing to get out there and try to change

19 over, if you will, from their native language to

20 English, trying to make that gap of that learning

21 process, whether they are really going to get a

22 whole year's of education; if they can't speak the

23 language or don't understand English. To me, that

24 is a big player, no matter whether it's Orange

25 County or whatever school it is, if you don't have


118
1 the quality teachers.

2 Are you getting the type teachers you need

3 for the ESAU programs? I know Osceola was

4 having some problems getting enough teachers

5 for a while. Is Orange County having the same

6 problem?

7 MR. BLOCKER: It's a challenge. We are not

8 achieving at the level we'd like. We actually are

9 going to places like Puerto Rico to recruit

10 teachers. It is a challenge. We are able to meet

11 most of our teacher -- fill most of our teaching

12 positions. We have a turnover of approximately a

13 thousand a year. But we don't -- it's not a very

14 deep pool.

15 As a matter of fact, when you talk about

16 the charter district and waiving rules, we

17 actually hear a lot of complaints from our ESAU

18 teachers in reference to the time it takes them

19 to get certified; if we recruit them especially

20 from out of field, they don't meet the Florida

21 requirements at that time.

22 GOVERNOR BUSH: What is the problem, because

23 we may be able to help?

24 MR. BLOCKER: Basically, passing the exams

25 that needs to be done. And over a period of time


119
1 you can waive it, but it's like -- takes four

2 years down the road, and they kind of go through

3 that anxiety for four years while trying to adjust

4 to a new teaching assignment.

5 And if we can make life a little easier

6 along that line by blessing it a little earlier

7 and giving them some additional support in the

8 right areas, I think that would go a long way

9 to make it easier, because it's my belief that

10 every teacher knows another teacher, and they

11 become a recruiter. And if they say Orange

12 County is teacher friendly, then our problem

13 goes away.

14 GOVERNOR BUSH: Any other discussion? We are

15 seeking -- is there a motion?

16 COMMISSIONER CRIST: Motion to approve.

17 COMMISSIONER BRONSON: Second.

18 TREASURER GALLAGHER: I have an amendment to

19 discuss.

20 GOVERNOR BUSH: One amendment, correct?

21 TREASURER GALLAGHER: If we are going to

22 change the criteria to FCAT criteria.

23 GOVERNOR BUSH: Okay. That's true.

24 TREASURER GALLAGHER: So it's two.

25 GOVERNOR BUSH: Is there a second?


120
1 COMMISSIONER BRONSON: Second.

2 GOVERNOR BUSH: Moved and seconded. Without

3 objection, it's approved as amended. Thank you

4 very much. Well, done. Really commend for you

5 the community activity.

6 MR. PIERSON: Item 5 is amended rule

7 6A-6.0319, special instruction programs for

8 students who are gifted. This rule was amended

9 after publication and needs to be approved as

10 amended.

11 COMMISSIONER CRIST: Moved.

12 TREASURER GALLAGHER: Second.

13 GOVERNOR BUSH: Moved and seconded. Without

14 objection, it's approved.

15 Was there any discussion, is anybody here

16 to discuss it? I am sorry? It's pretty

17 amazing that there was no opposition. Good

18 work.

19

20

21

22

23

24

25


121
1 GOVERNOR BUSH: Secretary Struhs, what a joy

2 to see you.

3 TREASURER GALLAGHER: Motion on the minutes.

4 GOVERNOR BUSH: Is there a second?

5 GENERAL MILLIGAN: Second.

6 GOVERNOR BUSH: Moved and second. Without

7 objection, it's approved.

8 Item 2.

9 MR. STRUHS: Item 2, the staff is

10 recommending to the Board of Trustees that you

11 approve the application for the purchase of

12 approximately 1100 square feet of filled

13 state-owned submerged lands.

14 This is a case that goes way back to 1988.

15 We have a consent final judgment. The judgment

16 directs us to make this recommendation to you

17 to accept this application by the owner, by the

18 adjacent owner, to buy the land for a fee of --

19 TREASURER GALLAGHER: I move that we

20 authorize the conveyance to be found in the public

21 interest and approve our, according to our goals,

22 rule, for three times the appraised value.

23 GENERAL BUTTERWORTH: What's the appraised

24 value?

25 TREASURER GALLAGHER: 52,800.


122
1 GENERAL BUTTERWORTH: I second the motion.

2 MR. STRUHS: Before you vote on that, let me

3 draw your attention to some things that are in the

4 consent final judgment so you are aware of them.

5 Indeed, you are quite correct, if you

6 follow the Board of Trustees rules, that's

7 precisely the figure you would arrive at.

8 According to the consent final judgment,

9 if the sale offer that's made to Mr. Blackburn

10 is greater than the $15,000, he does have the

11 option to then remove the seawall and restore

12 the property. So just as long as you are aware

13 of that condition.

14 COMMISSIONER GALLAGHER: That's fair.

15 GOVERNOR BUSH: Explain to me why it is -- is

16 this the property where the two adjoining

17 properties had seawalls out, and how did that

18 happen?

19 MR. STRUHS: I have no idea.

20 GOVERNOR BUSH: Good answer.

21 TREASURER GALLAGHER: So the two -- I didn't

22 see that from the picture I saw. You are telling

23 me two adjacent properties are out further than

24 the --

25 GENERAL MILLIGAN: Exactly. When he came in


123
1 with his request to build the seawall, he designed

2 the seawall, or at least the request was to the

3 rear. But there were adjacent seawalls; one that

4 he owned on his piece of property and the one

5 adjacent on what would be the right side looking

6 toward the water.

7 Additionally, if you look at the

8 photographs, all of the seawalls that you can

9 see, at least in the photographs which are not

10 certainly all of them, are all lined up; and so

11 when he built his, he built his I think

12 consistent with the other seawalls but

13 inconsistent with his request for permit.

14 MR. STRUHS: That's correct.

15 GENERAL MILLIGAN: But he was certainly

16 consistent with the surrounding community.

17 GENERAL BUTTERWORTH: My staff is advising me

18 he is consistent with himself; because one of

19 those other seawalls is his.

20 GENERAL MILLIGAN: Absolutely. I said, it

21 was on his piece of property where he lives but

22 the one that was adjacent on the right, which he

23 did not own, and the one adjacent to it, and I

24 think the one even further down from the

25 photographs I saw, were all lined up like ducks in


124
1 a row.

2 GOVERNOR BUSH: I just am worried --

3 TREASURER GALLAGHER: I am looking at photo

4 three on my sheet. Do you have that, Colleen?

5 MR. STRUHS: We can offer you a photograph

6 here, if you would like.

7 GOVERNOR BUSH: That's not going to fit.

8 TREASURER GALLAGHER: That's his property in

9 the middle?

10 GENERAL MILLIGAN: That's the permit, the one

11 on the left is where he lives.

12 TREASURER GALLAGHER: Go to the one that has

13 the logs in it. Go to three. That's hard to tell

14 anything. I couldn't tell which is sticking out

15 more. One more.

16 My understanding is that the front

17 property toward the bottom of the picture is

18 his, and the one above it is the next door, and

19 the property we are talking about purchasing is

20 the one that is surrounded by the logs. Is

21 that incorrect?

22 GENERAL MILLIGAN: That's incorrect.

23 TREASURER GALLAGHER: So his property is the

24 one north, on the top of the photograph?

25 GENERAL MILLIGAN: No, that's his property


125
1 that you are looking at with the logs, as I

2 understand it. That's the one where his house is.

3 GOVERNOR BUSH: That's not the subject

4 property?

5 GENERAL MILLIGAN: But that's not the subject

6 property.

7 If you go back to that broader picture,

8 which I think was the first one you had up

9 there -- this is the -- the piece of property

10 on the right side of that picture is the one

11 that he did. His wall is further to the right,

12 and you can't see it.

13 TREASURER GALLAGHER: Does he own the one

14 further to the right?

15 GENERAL MILLIGAN: Yeah, that's where he

16 lives. That's where his house is. He just evened

17 it out.

18 GOVERNOR BUSH: The question is why wasn't he

19 given the right to do that in the beginning?

20 GENERAL MILLIGAN: That's a legitimate

21 question, I think.

22 TREASURER GALLAGHER: Do we know?

23 GOVERNOR BUSH: I think we may have an

24 answer.

25 TREASURER GALLAGHER: Which is? Do we have


126
1 an answer?

2 MR. STRUHS: This goes back to -- this goes

3 back to a permit that was issued in 1988.

4 TREASURER GALLAGHER: The question is why was

5 the permit --

6 MS. VIELHAUER: His permit application was to

7 build it in a different location than he did.

8 GOVERNOR BUSH: I understand that; that's why

9 we are possibly fining him.

10 TREASURER GALLAGHER: Why? Did they, did the

11 engineers make a mistake? Did you all tell him

12 this is where the your land stops, so you have to

13 put it here, so that's what his drawing said?

14 MS. VIELHAUER: Correct, we permitted it at

15 the mean high waterline. That's where he was

16 supposed to build it and he did not.

17 TREASURER GALLAGHER: How does the mean high

18 waterline end up on his piece of property 11 feet

19 behind where the other ones are?

20 GOVERNOR BUSH: Exactly.

21 MS. VIELHAUER: The other seawalls were old.

22 They were build in 1950, '60s.

23 GOVERNOR BUSH: Don't you see --

24 TREASURER GALLAGHER: But that doesn't make

25 commons sense to me. Why would we make a guy move


127
1 his back 11 feet? Why wouldn't we have, for good

2 public policy, have a seawall be straight?

3 MR. STRUHS: Just as a point of reference, I

4 can tell you that this very year, 2002, we are

5 dealing with a similar situation in Volusia

6 County. And the management at the department

7 today views these issues I think in a far more

8 pragmatic and common sense way.

9 Because, in fact, we have a situation

10 where somebody is seeking to build a seawall.

11 And if you were to use sort of a mean high

12 waterline, it would be landward of the existing

13 seawalls.

14 And we have made the argument in that case

15 that common sense, as well as arguably just

16 good engineering, would dictate that you

17 actually keep them in alignment and join those

18 seawalls together.

19 So that's the practice that we are engaged

20 now. I can't explain --

21 COMMISSIONER GALLAGHER: I understand, let's

22 go to where we are now.

23 So now have this fellow put his

24 application in today, and your engineers look

25 and see that mean high waterline is where it


128
1 was in those days; the two seawalls are 11 feet

2 forward of that.

3 And so what is the process? You want the

4 seawall to be straight. Does he buy the land?

5 Do you give it to him? What happens today?

6 MR. STRUHS: Today if he came in and made

7 this application --

8 TREASURER GALLAGHER: Today he came in, he

9 wants to put a seawall up. Would you give him a

10 permit to put the seawall up 11 feet back or would

11 you give him a permit to put the seawall up

12 aligned with the other seawalls?

13 MR. STRUHS: Pending normal review and --

14 COMMISSIONER GALLAGHER: All the stuff,

15 right.

16 MR. STRUHS: The turtle folks, the fish and

17 wildlife and everything.

18 TREASURER GALLAGHER: All that stuff is done.

19 MR. STRUHS: With all that done, what I would

20 recommend is that the permit be issued to build

21 the seawalls in alignment.

22 TREASURER GALLAGHER: Right.

23 MR. STRUHS: That would then require --

24 COMMISSIONER GALLAGHER: What would he have

25 to do? Do we have to sell him some property?


129
1 MR. STRUHS: Yes.

2 TREASURER GALLAGHER: How would we price

3 that?

4 MR. STRUHS: We would price it using the

5 formula and the Board of Trustees rules. We would

6 get an appraised value of it.

7 TREASURER GALLAGHER: And he would pay --

8 MR. STRUHS: My guess is the Board of

9 Trustees could do whatever you wish, but my guess

10 is you would probably sell it to the adjacent

11 landowner, the applicant, for the appraised value.

12 In this instance, in this instance, the

13 rules, the Board of Trustees rules advise you

14 to charge three times the appraised value

15 because it was -- you are seeking -- the

16 purchase is being sought after the land was

17 filled.

18 TREASURER GALLAGHER: What you are doing

19 right now, say in Volusia County, you are going

20 through all the -- you are getting to the end of

21 the line; everybody approves the land being

22 transferred; actually probably water being

23 transferred, whatever is being transferred to make

24 the line straight and being filled; and you are

25 charging them the appraised value? Do these not


130
1 come to us? They must come to us because you have

2 to have five votes.

3 MR. STRUHS: Right.

4 TREASURER GALLAGHER: So you have some in the

5 works come to us and you are going to recommend

6 appraised value?

7 MR. STRUHS: I don't know yet. What we are

8 recommending in terms of the -- not in the

9 proprietary side, but in terms of the regulatory

10 side, recommending that seawalls be built keeping

11 them in alignment.

12 GOVERNOR BUSH: If it wasn't for the fact

13 that this guy had a permit that said otherwise and

14 he probably wacked a bunch of mangroves down and

15 filled it, and everything, this is really a case

16 of really stupid government. I am really glad to

17 see that you are being smarter about it.

18 But the fact is, irrespective of how

19 stupid whoever it was that made that decision

20 was, this guy accepted it. And then was he --

21 does anybody back in 1988 remember in his

22 conversations on this agenda item, has he said

23 I didn't know better? Or what I have been told

24 is he knew better.

25 MR. STRUHS: There have been a whole variety


131
1 of claims and counterclaims, all been litigated.

2 GOVERNOR BUSH: He is not here?

3 TREASURER GALLAGHER: I stand by my motion.

4 I just wanted to know where we are.

5 MR. STRUHS: I am not here to defend

6 decisions in 1988 but --

7 GOVERNOR BUSH: In the process of negotiating

8 this or the court cases, litigation, has he

9 admitted that he had a permit to do something

10 different than what he did? He did?

11 MS. VIELHAUER: Yes, he has.

12 GENERAL BUTTERWORTH: He already lost two

13 court cases on this and the court has already

14 ruled.

15 GOVERNOR BUSH: It's a lot of money.

16 GENERAL MILLIGAN: It is a lot of money,

17 although apparently this guy could care less from

18 what I understand.

19 But that shouldn't be on the basis that we

20 decide how much we should charge for this piece

21 of property.

22 GOVERNOR BUSH: Do you have an amendment?

23 GENERAL MILLIGAN: I do. I think that while

24 I appreciate the $52,800 is what you would charge

25 him if he did something that was really, let's say


132
1 stupid, but we were stupid.

2 The whole thing was poorly done and just

3 makes no sense to put the seawall -- when we

4 approved putting the seawall.

5 So I would amend the motion to go back to

6 what you all recommended, which was a $15,000

7 price on the piece of property. 15,000.

8 GOVERNOR BUSH: Is this a substitute motion?

9 TREASURER GALLAGHER: Can we have a

10 discussion?

11 GOVERNOR BUSH: Yeah. I was just trying to

12 see if there was a second.

13 COMMISSIONER CRIST: I will second it.

14 TREASURER GALLAGHER: The reason that I made

15 the 52-8 is we have a rule basically that says you

16 will pay three times the appraised value for this

17 when, in fact, trying to get it straightened out

18 after the fact.

19 I am not saying it's a wonderful price;

20 that's just what our rule is. And if we start

21 negotiating that down, we will be setting a

22 precedent and that -- although I agree with

23 everything you say, General, it's a bad slip to

24 go in my opinion, and the courts will start

25 looking at and people will be able to appeal


133
1 what we are doing from our rule and everything

2 else. So that's why I did what I did.

3 GENERAL MILLIGAN: I have no problem with

4 setting a precedent, recognizing good judgment and

5 common sense.

6 MR. STRUHS: Governor and Members, I would

7 just, for your advice, remind you that your choice

8 is not necessarily 15,000 or 52-8. That, in fact,

9 you can determine the price.

10 GOVERNOR BUSH: We need five votes for

11 whatever we agree to, which looks like an

12 interesting challenge here.

13 GENERAL BUTTERWORTH: Looks like it might be

14 a long day.

15 I think we did ask for some comments from

16 residents in the general area. And my notes

17 show you met before, Governor, that some of the

18 objections concerned about environmental

19 impacts, degradation of the area and also

20 mangrove destruction, which we don't know a lot

21 of those areas also; so we are, in essence,

22 maybe rewarding this person where we should not

23 be.

24 So I stick with Commissioner Gallagher and

25 I think this person deserves this penalty.


134
1 GOVERNOR BUSH: There is a substitute motion.

2 There is a substitute motion and a second.

3 Is there anymore discussion on that?

4 All in favor of General Milligan's motion

5 say aye.

6 GOVERNOR BUSH: Aye.

7 COMMISSIONER BRONSON: Aye.

8 COMMISSIONER CRIST: Aye.

9 GENERAL MILLIGAN: Aye.

10 GOVERNOR BUSH: All opposed.

11 GENERAL BUTTERWORTH: No.

12 TREASURER GALLAGHER: No.

13 GOVERNOR BUSH: Motion fails, had four votes.

14 We are back to the --

15 COMMISSIONER BRONSON: Governor, this is one

16 of these issues that I dealt with for seven years

17 on the Senate on Natural Resources, and I am going

18 to tell you -- of course, this goes back to '88,

19 but I know of a lot of places in this state where

20 people bought land, they got the deeds to their

21 property, during storm tides and other things

22 their property has washed out away from where

23 their property line was, which in some cases the

24 state goes in and through the minutia of the state

25 process, says this is submerged land, when


135
1 technically that's washed out land under storm

2 conditions.

3 You are going to have these coming up from

4 time to time. I know people put in storm walls

5 and still had -- because they were not done

6 adequately -- and still had an undercurrent

7 take their land as much as two and three feet

8 out behind the wall and wash it out into a lake

9 under storm conditions.

10 TREASURER GALLAGHER: That falls under

11 accretion. That's a different set of rules.

12 GOVERNOR BUSH: Let's don't talk about that.

13 COMMISSIONER BRONSON: I am just saying --

14 GOVERNOR BUSH: We need Secretary Harris here

15 for that.

16 COMMISSIONER BRONSON: -- there is still a

17 lot of people, based under some of the original

18 deeds of this state, that are making some claims

19 on property that the state is claiming is

20 submerged lands. I am telling you it's not an

21 easy process; it's not an easy issue at all.

22 And to go back and do an offset -- I might

23 tell you, and I am not an engineer, but I can

24 tell you what happens when you have an offset

25 wall from where the other walls are; when storm


136
1 tides go in, it all rushes into that one point.

2 That's just the way it works. And, therefore,

3 that property owner is in danger.

4 GOVERNOR BUSH: All right. We have a motion.

5 You have a motion, Commissioner?

6 TREASURER GALLAGHER: Just so everybody knows

7 where we are. If this motion fails, tell us what

8 happens.

9 I think he has to take it down.

10 GENERAL BUTTERWORTH: We have a court order.

11 MR. STRUHS: Yes, if the Board of Trustees

12 chooses or fails to not sell the land, then

13 Mr. Blackburn is required under the court order to

14 remove the seawall and remove the --

15 TREASURER GALLAGHER: Which, by the way, is

16 his choice anyway. He can purchase this for the

17 $52,800, or he can take the seawall down, if we

18 give him that option. If we don't vote for this,

19 he does not have an option, is that correct?

20 MR. STRUHS: That's correct; if you do not

21 agree to sell it for whatever price you determine

22 is fair, although by court order we have to

23 recommend 15 --

24 GOVERNOR BUSH: Which you did.

25 MR. STRUHS: Which we did. If you choose not


137
1 to sell it, regardless of whatever price you set,

2 then he is in fact required to remove the seawall

3 and remove the --

4 GOVERNOR BUSH: That was helpful.

5 COMMISSIONER BRONSON: I have a question

6 based on the fact we are about to go through

7 another motion here.

8 What do we do with the court's final

9 judgment in 1996? How is that affected by what

10 we are doing here today?

11 TREASURER GALLAGHER: We were told about it

12 and we just rejected it, the price at least.

13 GOVERNOR BUSH: Why the heck did it take so

14 long to get us from 1996?

15 COMMISSIONER GALLAGHER: There was an appeal.

16 MS. VIELHAUER: Actually as of 1996, the

17 consent final judgment was in place and we were

18 under the belief that he was going to follow

19 through on those commitments. We did not learn

20 until 2000, 2001, that he had, in fact, not done

21 that.

22 GOVERNOR BUSH: So there was a judge that

23 ruled that he should pay 15 grand and he didn't do

24 it?

25 MR. STRUHS: No, the judge ruled that he


138
1 should apply to the Board of Trustees to purchase

2 the land, and we would recommend a price of

3 $15,000.

4 GOVERNOR BUSH: And he didn't do that?

5 MR. STRUHS: When did he apply?

6 MS. VIELHAUER: Correct. He submitted a

7 one-page letter shortly after the consent final

8 judgment but was not a complete application; so

9 his complete application was not submitted until

10 this past summer, less than a year ago.

11 TREASURER GALLAGHER: There is a whole

12 litany --

13 GOVERNOR BUSH: I saw some of it. Any --

14 there is a motion, and I believe there is a

15 second. There is a second by General Butterworth.

16 GENERAL MILLIGAN: One other quick comment.

17 According to Dana here, if it's offered to him at

18 15, he has to buy it. He doesn't have a choice;

19 is that right?

20 GOVERNOR BUSH: He can tear down the --

21 GENERAL MILLIGAN: No.

22 MR. STRUHS: No.

23 TREASURER GALLAGHER: He has a choice.

24 GENERAL MILLIGAN: No, he doesn't have a

25 choice.


139
1 MR. STRUHS: If he applies, as he has, to

2 purchase the land and you agree to sell it at

3 $15,000, then the deal is done.

4 GOVERNOR BUSH: That is ancient history; we

5 just lost that vote.

6 GENERAL MILLIGAN: We can revisit a lot of

7 things in this business, I suppose.

8 GOVERNOR BUSH: We could.

9 GENERAL MILLIGAN: It's only if it's in

10 excess of 15,000 does he have the option to not

11 buy it and tear it down.

12 MR. STRUHS: That's correct.

13 GENERAL MILLIGAN: Whether it's 15,000 or

14 less I presume --

15 COMMISSIONER BRONSON: If he bought it at the

16 apprised value, which is higher than 15, he

17 still -- would have that same option, either not

18 pay it and tear down the wall.

19 GENERAL MILLIGAN: Anything over 15 he has

20 the option to turn it down.

21 MR. STRUHS: As one final detail, the current

22 appraised value is probably a little more than

23 17,000. The 15,000 was the price set by the

24 judge, which was probably about the appraised

25 value at the time of the consent final judgment.


140
1 GOVERNOR BUSH: All right. Any other

2 discussion? All in favor of Commissioner

3 Gallagher's motion say aye.

4 TREASURER GALLAGHER: Aye.

5 GENERAL BUTTERWORTH: Aye.

6 GOVERNOR BUSH: Opposed?

7 COMMISSIONER BRONSON: No.

8 COMMISSIONER CRIST: No.

9 GENERAL MILLIGAN: No.

10 GOVERNOR BUSH: No.

11 COMMISSIONER BRONSON: I have a motion,

12 Governor. My motion would be to submit this at

13 the appraised value, which is I believe 17-6, that

14 we charge at least the appraised value for the

15 property.

16 GOVERNOR BUSH: Is there a second?

17 COMMISSIONER CRIST: Second.

18 GOVERNOR BUSH: This is a substitute motion

19 or new motion, since the other ones have been

20 rejected?

21 TREASURER GALLAGHER: This is a fresh new

22 one.

23 GOVERNOR BUSH: I am sorry, you have a --

24 TREASURER GALLAGHER: Price at the appraised

25 value.


141
1 GENERAL BUTTERWORTH: I have a question.

2 David, obviously this case is a little unusual.

3 We have somebody here who obviously violated his

4 own permit, knowingly did it, went right in your

5 face and right in the face of the courts and

6 everything else.

7 How much lawyer time literally, how many

8 lawyer hours do we really have into this case

9 and assigning $200 an hour, how much time do we

10 really have into this case in lawyer time?

11 MR. STRUHS: Of course --

12 TREASURER GALLAGHER: This guy put us

13 through.

14 GENERAL BUTTERWORTH: This guy put us

15 through.

16 MR. STRUHS: Of course, the answer is I don't

17 know, but we could make a rough estimate that it

18 would be at least $50,000.

19 GENERAL BUTTERWORTH: It must be more than 50

20 hours.

21 TREASURER GALLAGHER: Just by each one of

22 these multiple hearings that happened over that

23 period of time, you have that.

24 GOVERNOR BUSH: Also, if the department's

25 policies weren't so idiotic to suggest you have a


142
1 different standard for your neighbors than you do

2 for the applicant, we wouldn't have had any court

3 costs.

4 COMMISSIONER BRONSON: That's part of my

5 default motion here, is the fact it's not all

6 falling right on the head of this one individual.

7 I don't know how much involvement, Governor, the

8 engineering firm had in it. I would assume they

9 were as accurate as they thought they could be on

10 it. But it seems like there is a comedy of errors

11 here, unfortunately, on both sides of this issue.

12 That's why I made the motion on the 17-6.

13 MR. STRUHS: One of the things I would like

14 to do is just provide some historical context on

15 Commissioner Bronson's point, I think it's on

16 point.

17 This all occurred before there was a deed.

18 This occurred back in the days when there was a

19 Department of Environmental Regulation that

20 dealt with regulation, and then there was a

21 Department of Natural resources that dealt with

22 the proprietary issues.

23 The fact that Florida took those two

24 separate departments that gave us a result like

25 this and merged them into a single department,


143
1 this was the kind of -- this was the example

2 that led to the formation of the department,

3 thinking that by turning it into a single

4 department we would avoid this situation in the

5 future.

6 GOVERNOR BUSH: Okay. Is there a second on

7 Commissioner Gallagher's substitute amendment?

8 GENERAL BUTTERWORTH: Second.

9 GOVERNOR BUSH: All in favor of the

10 substitute, which once again is for how much?

11 TREASURER GALLAGHER: 34,000.

12 GOVERNOR BUSH: $34,000 say aye.

13 TREASURER GALLAGHER: Aye.

14 GENERAL BUTTERWORTH: Aye.

15 GOVERNOR BUSH: All opposed?

16 COMMISSIONER BRONSON: No.

17 COMMISSIONER CRIST: No.

18 GENERAL MILLIGAN: No.

19 GOVERNOR BUSH: No.

20 GOVERNOR BUSH: Okay.

21 GENERAL BUTTERWORTH: Move deferral.

22 GOVERNOR BUSH: We can't go to the amendment?

23 GENERAL BUTTERWORTH: I am sorry.

24 GOVERNOR BUSH: Let's try the Bronson

25 amendment.


144
1 GENERAL BUTTERWORTH: Sorry about that. I

2 looked at the time over there.

3 GOVERNOR BUSH: There is a motion and a

4 second I believe already on Commissioner Bronson's

5 amendment which is to pay $17,000.

6 COMMISSIONER BRONSON: 17 -- 17-6, appraised

7 value.

8 GOVERNOR BUSH: All in favor say aye.

9 COMMISSIONER BRONSON: Aye.

10 COMMISSIONER CRIST: Aye.

11 GENERAL MILLIGAN: Aye.

12 GOVERNOR BUSH: Aye.

13 GOVERNOR BUSH: All opposed?

14 TREASURER GALLAGHER: No.

15 GENERAL BUTTERWORTH: No.

16 GOVERNOR BUSH: General Butterworth.

17 GENERAL BUTTERWORTH: I move deferral.

18 GENERAL MILLIGAN: Second.

19 GOVERNOR BUSH: There is a motion and a

20 second. All in favor say aye.

21 CABINET MEMBERS: Aye.

22 GOVERNOR BUSH: I think we won something

23 there.

24 COMMISSIONER BRONSON: We are back to square

25 one.


145
1 MR. STRUHS: Item 3 is a great item; it's

2 boys and girls clubs, monitoring programs and free

3 medical clinics and a playground and it's one that

4 we really like.

5 GOVERNOR BUSH: Is there a motion?

6 COMMISSIONER BRONSON: So moved.

7 GENERAL MILLIGAN: Second.

8 GOVERNOR BUSH: Moved and seconded. Without

9 objection, it's approved.

10 MR. STRUHS: Thank you very much.

11 Item 4 is not unlike item 3 in that it's

12 just a great piece of public policy.

13 The reason we brought this one to the

14 board is ordinarily we would have done a

15 50-year lease and you would not have had it on

16 your agenda.

17 Because they are seeking a federal

18 government grant from Housing and Urban

19 Development, HUD requires a 75-year lease and

20 because we can only do a 50-year lease we have

21 to do it bring back to you for your approval.

22 We are recommending approval. This is a

23 marvelous facility, and it's already providing

24 real benefits at that property and other areas

25 the south Florida.


146
1 COMMISSIONER BRONSON: Motion on item 4.

2 GENERAL BUTTERWORTH: Second.

3 GOVERNOR BUSH: Moved and seconded. Without

4 objection, it's approved.

5 MR. STRUHS: Item number 5, we are

6 recommending approval of an option agreement to

7 acquire 3,225 acres within -- and I understand

8 there is a North Florida pronunciation of this

9 word -- Goethe State Forest by Department of

10 Agriculture and Consumer Services.

11 TREASURER GALLAGHER: Move to approve 5.

12 GENERAL BUTTERWORTH: Second.

13 GOVERNOR BUSH: Moved and seconded. Without

14 objection, it's approved.

15 MR. STRUHS: Item 6 is the McKeithen option

16 agreement. We are seeking to do three things.

17 One is to execute the option agreement to

18 acquire 65.6 acres, to designate the University

19 of Florida as the managing agency and to

20 confirm the management policy statement.

21 Dr. Jan Matthews is here from the Department of

22 State to speak to this issue.

23 The reason we are recommending approval of

24 this is this site is the site of some

25 exceptional preColombian examples of ceramics,


147
1 and we have already done a lot of research

2 there through the University of Florida.

3 GOVERNOR BUSH: Is there a motion?

4 GENERAL BUTTERWORTH: Move.

5 COMMISSIONER BRONSON: Second.

6 GOVERNOR BUSH: Second. Without objection,

7 it's approved.

8 MR. STRUHS: Thank you.

9 Item number 7, item number 7 is one of the

10 string of related items that we've brought to

11 the board as part of the acquisition of land

12 along the Oklawaha River corridor in reservoir

13 properties.

14 I would just remind you of the obvious,

15 that is that we are in the midst of settlement

16 negotiations on other similar and adjacent

17 properties; and any discussions obviously that

18 occur here in the public session may very well

19 affect our ability to negotiate advantageous

20 terms for the state for the remaining two.

21 Just to put it in context, there are nine

22 parcels here. Three of them were purchased

23 outright at the very beginning. Three were

24 purchased and approved by the Board of Trustees

25 through settlements. This one is now pending


148
1 before you, and there are two remaining.

2 GOVERNOR BUSH: Commissioner Gallagher.

3 TREASURER GALLAGHER: I want to understand

4 something. Is this land and all the ones you are

5 talking about land that has been flooded because

6 of the reservoir?

7 MR. STRUHS: Yes, it is.

8 TREASURER GALLAGHER: And we have purchased

9 some of these parcels from people?

10 MR. STRUHS: Yes, we have.

11 TREASURER GALLAGHER: -- on some kind of a

12 deal. And if, in fact, we had eliminated Rodman

13 Dam, which this board historically has tried to do

14 a few times, what would have happened to the land?

15 MR. STRUHS: Well, the land would be --

16 TREASURER GALLAGHER: It would now not be

17 merged anymore?

18 MR. STRUHS: That's correct.

19 TREASURER GALLAGHER: What would happen;

20 they'd own it and that would be it, right?

21 MR. STRUHS: That's correct.

22 But the point I think in part is when that

23 the project was deauthorized, I believe in

24 1991, they have lost -- the owners have

25 arguably lost the value of that land, at least


149
1 in part, because of the inundation for the last

2 dozen years.

3 TREASURER GALLAGHER: Here's something I

4 don't understand. When the Cross Florida Barge

5 Canal is authorized, they build a dam, they put a

6 lock in and these peoples' lands are under water.

7 MR. STRUHS: Yes.

8 TREASURER GALLAGHER: Since -- when did they

9 put the dam in, 1968 or something?

10 MR. STRUHS: '66, I think.

11 TREASURER GALLAGHER: Okay. '66. Everybody

12 is happy? Why didn't they want money back then?

13 GOVERNOR BUSH: They did get money.

14 GENERAL MILLIGAN: We already paid this guy

15 money.

16 TREASURER GALLAGHER: That's where I am

17 coming to. If we already bought it once, why are

18 we buying it a second time?

19 MR. STRUHS: Let me address that. If I can

20 take these one at a time, it would be easier for

21 me.

22 The Florida Canal Authority -- in 1966,

23 when the Florida Canal Authority was acquiring

24 the flowage easements for the construction of

25 the reservoir, they, in fact, in some cases


150
1 bought the land fee simple, and other examples

2 such as this one they purchased an easement, a

3 flowage easement. There may be some debate as

4 to whether or not the folks back in 1966 paid

5 too much.

6 GOVERNOR BUSH: What did they pay?

7 MR. STRUHS: I don't know exactly.

8 GOVERNOR BUSH: They paid appraised value?

9 GENERAL MILLIGAN: They paid $440,360.

10 GOVERNOR BUSH: Is that equal to at that time

11 the fee simple title equivalent?

12 MR. STRUHS: I guess my point is we can tell

13 you here exactly how much they paid, but the issue

14 isn't what they paid; the issue is what did the

15 state purchase? And I think that's a very

16 important distinction.

17 GOVERNOR BUSH: Answer the first question,

18 then you answer the question you want to.

19 What is the -- when we bought the land,

20 the flowage easement, did we pay the equivalent

21 of a fee simple title?

22 MR. STRUHS: No, but my guess is it would

23 probably be very close to that because, in fact,

24 most of the value of the land was actually being

25 taken up because of the easement.


151
1 GOVERNOR BUSH: I thought that would have

2 been the logical thing to do. We got an easement,

3 but we paid the equivalent of buying the land.

4 Now we are back, it looks like we are paying

5 190 percent of the appraised value. Triple.

6 TREASURER GALLAGHER: Let me ask you this

7 question. We paid an acquired flowage easement,

8 right?

9 MR. STRUHS: That's correct.

10 TREASURER GALLAGHER: And --

11 MR. STRUHS: It was done through

12 condemnation.

13 TREASURER GALLAGHER: Right. We put a dam

14 up. Right? And we created a reservoir. For

15 whatever reason, that's what government did. And

16 we still have the dam up and there is still water

17 flowing over this land. Right?

18 MR. STRUHS: That's correct.

19 TREASURER GALLAGHER: So just because it got,

20 the Barge Canal got deauthorized, why does that

21 mean that all of a sudden we are supposed to buy

22 the land?

23 MR. STRUHS: Because in 1997 the Seventh

24 Circuit Court ruled that with the deauthorization

25 of the project, that essentially constituted a


152
1 reversion of the property to the original owners.

2 TREASURER GALLAGHER: If we sat here and said

3 we are going to recondemn it based on what we

4 already bought it for, they get nothing.

5 MR. STRUHS: Of course, you got the fact that

6 between 1991 and 2002-- right? I am sorry,

7 Commissioner, your question?

8 TREASURER GALLAGHER: If we, as a state,

9 said: Look, we already paid for this, we

10 condemned it once, the courts now said that:

11 Okay, the reason you condemned it doesn't exist

12 anymore, so you've either got to give them back

13 the land, which we tried to do by taking the dam

14 down, we are not taking the dam down, so we

15 obviously made a state decision to keep that

16 reservoir. Therefore, we keep the land, and we

17 recondemn it and they've already been paid for it.

18 MR. STRUHS: But according to courts, we have

19 to repurchase it.

20 GOVERNOR BUSH: Why would we repurchase it at

21 180 percent of the appraised value?

22 MR. STRUHS: This gets into the area that we

23 can talk about it in great detail, but it will

24 obviously affect the remaining two.

25 GOVERNOR BUSH: I hope you are getting a


153
1 sense that we are helping you with the next buyers

2 because we are pushing the price down in my

3 opinion. You are marking it up, we are marking it

4 down. I think we are helping you a lot.

5 GENERAL BUTTERWORTH: Governor, if possible,

6 unless this is time-sensitive, if we could defer

7 this for two weeks and perhaps have someone from

8 David's shop and my shop talk to everybody here.

9 COMMISSIONER BRONSON: That's --

10 GENERAL BUTTERWORTH: I am worried about the

11 ones down the road.

12 COMMISSIONER BRONSON: That sounds like a

13 good idea, but at the same time, Governor,

14 General, I would like to get a reading from you

15 also as a Cabinet Member here before I make a

16 vote; the fact we are in this mess is because we

17 started out on a project that we condemned the

18 land and offered a price to the land owner for a

19 purpose, which that purpose was never delivered;

20 and, therefore, sometimes these people did not

21 want to give up this land, but had to because it

22 was a condemnation process by the state.

23 And they are saying, they are either going

24 to come back and say: You have created a mess

25 on my property that you didn't deliver on, and


154
1 that probably is why they are asking more

2 money.

3 But the fact is we need to know because

4 this is going to affect every other piece that

5 we ever condemned, that there may be a change

6 on down the road. I need to know before I

7 vote: What is our obligation here?

8 TREASURER GALLAGHER: I would like to take a

9 look at this and hold off on it and not vote on it

10 because there are a lot of unanswered questions

11 for me. This is going to set a precedent, and I

12 just have a problem buying things two or three

13 times.

14 For me, I would like to take -- I would

15 like to -- if we've got to give it back, it's a

16 lot cheaper to just take the dam down and give

17 them their money back.

18 GOVERNOR BUSH: Go talk to Senator King. The

19 state policy has not changed; it's just a little

20 difficult to implement if -- we haven't changed

21 our policy; we, in fact, continue to argue for

22 that, and I don't know what damages would have to

23 be given to a property owner after we drain the

24 dam or the pool or whatever it's called, and the

25 property would be dramatically different, that's


155
1 for sure.

2 MR. STRUHS: There are two questions --

3 GENERAL BUTTERWORTH: Three miles of

4 waterfront property.

5 MR. STRUHS: There is now two questions

6 pending and I want to be able to respond to both

7 of them.

8 The Attorney General asked the question:

9 Is there a issue or risk if the item is

10 deferred?

11 The answer is yes. Our understanding is

12 that the Millers could, with a failure to act

13 on it today, arguably they could walk away from

14 this settlement proposal.

15 GOVERNOR BUSH: Are the Millers here?

16 MR. STRUHS: Their representative says they

17 would be willing to extend for another two weeks.

18 GOVERNOR BUSH: Okay. That answers that.

19 MR. STRUHS: That answers that. The second

20 issue --

21 GOVERNOR BUSH: I don't think there is a

22 second issue.

23 MR. STRUHS: There was a second issue --

24 TREASURER GALLAGHER: Let's just hold off two

25 weeks and we'll talk about all those issues over


156
1 two weeks. I move to hold this --

2 GOVERNOR BUSH: General Butterworth has made

3 a motion for deferral. There is a second. Any

4 other discussion?

5 Without objection, the item is deferred.

6 We had some interesting items on your agenda,

7 David.

8 MR. STRUHS: Thank you.

9 GOVERNOR BUSH: You are most welcomed.

10 Department of Administration.

11 GENERAL MILLIGAN: Governor, before we do

12 that, before everybody departs, the issue raised

13 on the payment of former members of the Parole

14 Commission is set in law. And to change that will

15 require a statute change.

16 And I will talk to Commissioner Henry,

17 Chairman Henry I guess is the right term,

18 Chairman-elect Henry, and encourage him to do

19 an assessment of what a fair value would be and

20 then pursue it.

21

22

23

24

25


157
1 GOVERNOR BUSH: Okay. State Board of

2 Administration.

3 MR. HERNDON: Item number 1 is the minutes.

4 GENERAL BUTTERWORTH: Moved.

5 TREASURER GALLAGHER: Second.

6 GOVERNOR BUSH: Moved and seconded. Without

7 objection, it's approved.

8 MR. HERNDON: Item number 2 is approval of

9 the fiscal sufficiency of an amount not exceeding

10 $200 million, State of Florida full faith and

11 credit state Board of Education Bonds.

12 GOVERNOR BUSH: Can we have a little -- just

13 a second. Thank you.

14 Item 2.

15 MR. HERNDON: Is approval of fiscal

16 sufficiency of an amount not exceeding $200

17 million, State of Florida full faith and credit

18 State Board of Education Public Education capital

19 outlay bonds.

20 GENERAL MILLIGAN: I move item 2.

21 TREASURER GALLAGHER: Second.

22 GOVERNOR BUSH: Moved and seconded. Without

23 objection, it's approved.

24 MR. HERNDON: Item number 3 is approval of a

25 fiscal determination of an amount not exceeding


158
1 $13,535,000 tax exempt Florida Housing Finance

2 Corporation Revenue bonds for Grande Court at

3 Boggy Creek Apartments in Osceola County.

4 TREASURER GALLAGHER: Motion.

5 GENERAL MILLIGAN: Second.

6 GOVERNOR BUSH: Moved and seconded. Without

7 objection, it's approved.

8 MR. HERNDON: Item number 4 is approval of a

9 fiscal determination of amounts not exceeding

10 11,020,000-dollar tax exempt and 1,895,000-dollar

11 taxable Florida Housing Finance Corporation

12 Housing Revenue Bonds for the Hampton Pointe

13 Apartments in Charlotte County.

14 TREASURER GALLAGHER: Motion.

15 GENERAL MILLIGAN: Second.

16 GOVERNOR BUSH: Moved and seconded. Without

17 objection, it's approved.

18 MR. HERNDON: Item number 5 is approval of

19 fiscal determination of an amount not exceeding

20 $2.8 million tax exempt and 380,000 taxable

21 Florida Housing Finance Corporation Housing

22 Revenue Bonds for Lindsey Gardens Phase III in

23 Indian River County.

24 GENERAL MILLIGAN: Move item 5.

25 TREASURER GALLAGHER: Second.


159
1 GOVERNOR BUSH: Moved and seconded. Without

2 objection, it's approved.

3 MR. HERNDON: Item number 6 is approval of

4 fiscal determination of amounts not exceeding

5 $8,070,000 senior tax exempt, 2.76 million

6 subordinate tax exempt, and 2.970 senior taxable

7 Florida Housing Finance Corporation Housing

8 Revenue Bonds for the Palms at Vero Beach

9 Apartments in Indian River County.

10 TREASURER GALLAGHER: Move.

11 GENERAL MILLIGAN: Second.

12 GOVERNOR BUSH: Moved and seconded. Without

13 objection, it's approved.

14 MR. HERNDON: Item number 7 is approval

15 fiscal determination amounts not exceeding

16 $9,690,000 tax exempt and $3,090,000 taxable

17 Florida Housing Finance Corporation Housing

18 Revenue Bonds for the Peacock Run Apartments in

19 St. Lucie County.

20 GENERAL MILLIGAN: Motion on 7.

21 TREASURER GALLAGHER: Second.

22 GOVERNOR BUSH: Moved and seconded. Without

23 objection, it's approved.

24 MR. HERNDON: Item number 8 is approval of

25 fiscal determination of amounts not exceeding


160
1 $6,040,000 senior tax exempt, $2,200,000

2 subordinate tax exempt and $2,745,000 Senior

3 Taxable Florida Housing Finance Corporation

4 Housing Revenue Bonds for Valencia Trace

5 Apartments in Orange County.

6 TREASURER GALLAGHER: Move.

7 GENERAL MILLIGAN: And I will second 8, and

8 will note that we are doing a lot better on these

9 things. It's taken a long time to see competitive

10 bid bond efforts in this area and glad to see it's

11 happening.

12 GOVERNOR BUSH: We ought to get Mark Kaplan

13 to come.

14 GENERAL MILLIGAN: He has done a good job

15 there. I think that would be a great idea,

16 Governor.

17 GOVERNOR BUSH: We should probably do that.

18 I will remind myself to get him to come. Would he

19 come to -- he should probably come to the Cabinet

20 meeting, not to the State Board, since it's on

21 both side and maybe some Cabinet members would

22 like to him.

23 Moved and seconded. Without objection,

24 it's approved.

25 MR. HERNDON: Item number 9 is a statistical


161
1 report for informational purposes only that was

2 provided to you yesterday reflecting the status of

3 the PEORP program as of this date.

4 Again, let me point out that enrollment

5 doesn't officially open for the group one

6 employees until June 1, but we have mailed a

7 little over 99 percent of all the first

8 employee traunch kits, and for the second

9 traunch of 282,098, .7 percent have been mailed

10 or about 440,000 kits have been mailed.

11 We now have about 14 or so thousand people

12 who've exercised a preelection period choice,

13 and 30,000 people who are signed up for

14 workshops.

15 So again, we are moving along in

16 recognition of the fact that human nature,

17 being what it is in deferring these decisions

18 until later on, we hope to see enrollment and

19 workshop sign up, and so forth, accelerate as

20 we get closer to the time.

21 GOVERNOR BUSH: That's just for information?

22 MR. HERNDON: That is for information

23 purposes only.

24 Item number 10 is also for informational

25 purposes, and we amended several of these items


162
1 at the suggestion of your staff to make it

2 clear; and that is to simply give you a status

3 report on the bundled providers on contract

4 negotiations which are essentially the items

5 that we have outstanding. Actually there are

6 two items.

7 One is the stable value and the status of

8 that particular product. And I am pleased to

9 say that it looks like virtually all of the

10 problems as it relates to that last remaining

11 stable value product have gone away.

12 We still have a few I's to dot and T's to

13 cross to make it a final official situation,

14 but it looks like all liquidity issues, and so

15 forth, that had previously been of concern have

16 been resolved.

17 As it relates to the specific bundled

18 provider contracts themselves, we now are we

19 think closing in on getting signatures on all

20 of the these bundled provider contracts. We

21 have asked the parties to be prepared to sign

22 them prior to June 1, which is when enrollment

23 actually begins.

24 We have negotiations essentially completed

25 with three of the firms. One firm has a couple


163
1 of minor points; the other remaining firm has

2 some broader issues, but we had a lengthy

3 conference call with them and we think we

4 resolved most of those concerns.

5 TREASURER GALLAGHER: These provider

6 contracts are going to be pretty much identical,

7 is that correct?

8 MR. HERNDON: Yes, sir, they are identical.

9 Obviously the names are a little bit different and

10 the description of the products, and so forth.

11 But other than that, it's pretty much boiler plate

12 material.

13 That's for information only, too,

14 Governor.

15 Item number 11 is request approval of the

16 Florida State Board of Administration's budget

17 for fiscal year 2002-2003.

18 I understand you have an interest in

19 postponing some of this, and in the interest of

20 time, if you would rather me not go through the

21 explanation now or whatever is your pleasure.

22 GOVERNOR BUSH: What I requested was -- I

23 have no problems with the -- my concern relates to

24 the PEORP out-year budgets; I would like to see

25 that before we approve the next fiscal year's


164
1 budget. It's just a lot of money, that my

2 assumption was that there would be a decline after

3 the initial recruitment and education process,

4 that it would stabilize at a lower rate.

5 So before we -- I feel comfortable about

6 seeing some runs going out in the outyears.

7 The rest of it is related to the CAT Fund and

8 other things, I have no problems.

9 MR. HERNDON: CAT Fund, prepaid college

10 tuition and bond finance; if you are supportive of

11 those, we can get those off the deck.

12 TREASURER GALLAGHER: I move to approve all

13 the budgets, with the exception of the PEORP. I

14 guess that ties in with SBA. So let's do --

15 GENERAL MILLIGAN: That's something Tom and I

16 talked about this yesterday. The SBA is the

17 defined benefit and defined contribution. And I

18 kind of take exception to separating the two.

19 COMMISSIONER GALLAGHER: Let me amend that

20 and say the FHCA, Hurricane CAT Fund, Bond

21 Finance, Florida College Savings Program, which

22 includes both prepaid and savings, let's move

23 those three.

24 GENERAL MILLIGAN: And I second that.

25 GOVERNOR BUSH: Moved and seconded. Without


165
1 objection, it's approved.

2 MR. HERNDON: And item number 12 is to

3 request approval of a resolution relating to the

4 Florida Retirement System Retirement Plan Choice.

5 This is a resolution going out to the employers to

6 encourage that they let their employees

7 participate in the program to and make choices.

8 TREASURER GALLAGHER: We have a resolution to

9 pass, right? That's a resolution?

10 MR. HERNDON: Yes, sir.

11 GENERAL MILLIGAN: We already signed it. Do

12 we have to second it?

13 TREASURER GALLAGHER: I don't know. Moved.

14 GENERAL MILLIGAN: Second.

15 GOVERNOR BUSH: Moved and seconded. Without

16 objection, it's approved.

17 GENERAL MILLIGAN: You are not going to talk

18 about the audit committee? You want to defer

19 that?

20 MR. HERNDON: I will do that when we come

21 back and talk about the budget, unless you want to

22 talk about it further now?

23 GENERAL MILLIGAN: No, that's fine.

24 (The proceedings concluded at 12:10 p.m..)

25


166
1

2 CERTIFICATE OF REPORTER

3

4

5

6 STATE OF FLORIDA )

7 COUNTY OF LEON )

8

9 I, SANDRA L. NARGIZ, RMR, CRR, certify that I

10 was authorized to and did stenographically report the

11 proceedings herein, and that the transcript is a true

12 and complete record of my stenographic notes.

13 I further certify that I am not a relative,

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

15 nor am I a relative or employee of any of the parties'

16 attorney or counsel connected with the action, nor am I

17 financially interested in the action.

18 WITNESS my hand and official seal this 27th

19 day of May, 2002.

20

21

22 ______________________________

23 SANDRA L. NARGIZ, RMR, CRR
100 SALEM COURT
24 TALLAHASSEE, FL 32301
850-878-2221
25