Operating Budget

Fiscal Year 2011-2012

Primary Purpose
The Florida Prepaid College Board is committed to helping Floridians save for future qualified higher education expenses by providing a cost-effective, financially sound Prepaid College Plan and College Savings Program.

The Stanley G. Tate Prepaid College Plan became operational in 1988 and allows Florida families to prepay the cost for college tuition, required fees and dormitory housing for their children and grandchildren. When a participating family’s child or grandchild attends college the Board will pay the Florida public college or university the actual fees assessed by the institution at the time of admission. Should the student elect to attend a private college, attend a college out-of-state or attend an eligible technical school, the Board will pay the value of the Plan at the time of admission.

Florida’s College Savings Program was implemented in 2002, following federal enactment of Section 529 of the Internal Revenue Service Code. The savings program is similar to a mutual fund except it allows families to defer income taxes on investment earnings and, if the earnings are used for qualified education expenses, they are tax free. Families choose to invest in any of five customized investment options and decide how much and how often they want to save for college. The funds accumulated in each family’s account can be used for any qualified college expense including tuition, fees, housing, books, food and even graduate or professional school, in Florida or out of state.

Organization Overview
The Board establishes policy and actively oversees the investment and financial performance of the programs. There are 14 positions (FTE) authorized by the Board, including an Executive Director appointed to oversee the day-to-day operations of the Board and its programs.

In order to perform its responsibilities in the most effective and efficient manner, the Board contracts with various private companies to provide professional support services for both programs, including actuarial services, investment management services, records administration services, financial services and legal services. Approximately, 90% of the proposed operating budget for 2011-2012 is used to fund these services.

FY 2011-12 Budget