The State University System of Florida (SUS) will be lucky to receive $20M of the $145M in Public Education Capital Outlay (PECO) funds it has requested for 2012-2013.Florida’s PECO Revenue Estimating Committee has lowered its projection for the program’s maximum amount in response to a decline in the Gross Receipts Tax forecast. PECO funds come from utility taxes and go to public education building projects.
PECO money has become scarce due to the Great Recession, which has tanked the housing market and led to the closure of numerous businesses. Floridaians are also using a variety of methods to shave their energy costs, including purchasing more energy efficient appliances. These problems are all taking a heavy toll on the tax collections to go toward the PECO fund.
“It's intensified right now because of the economy, but there is a general trend too,” Amy Baker, coordinator of the Legislature's Office of Economic and Demographic Research, told the News Service of Florida. “Habits are changing. People who buy a different kind of light bulb will continue to buy a different kind of light bulb.”
Gov. Rick Scott vetoed the entire PECO appropriation FAMU received during the 2011 legislative session, which was $2,014,769 for electrical and technology upgrades. Scott also vetoed millions of campus infrastructure upgrade dollars designated for UF, USF, FAU, UCF, and UNF.
Money for campus electrical and technology upgrades continues to be FAMU’s top PECO priority. FAMU officials have warned that without the money, critical building code and safety improvements will be stalled. The university is already $9M behind in necessary upgrades due to the outcome of last year’s legislative session.
FAMU is also seeking $6,049,000 to finish up Pharmacy Phase II. The university has received $25,000,000 toward the total $31,049,000 required for the project.
Without support from PECO, construction projects at FAMU and other SUS institutions will be much more dependent upon private loans and the Capital Improvement Trust Fund (CITF) fees that are paid by students.
Pictured: The renovation of the Gore Educational Complex, a PECO-funded project.