Florida school officials held out hope that Gov. Charlie Crist's plan to hold back 4 percent of agencies' operating budgets the school districts might be spared. Lobbyists talked about the proposal in terms of "if" it will apply to public schools, rather than when.

Education Commissioner Eric J. Smith has put all doubts to rest with a memo to superintendents in which he tells them to budget accordingly.

I am recommending that school districts develop 2008-09 budgets that reflect contingency funding plans that reduce total Florida Education Finance Program (FEFP) expenditures by approximately 2 percent in order to achieve a statewide reduction of 4 percent in state funding. Contingency plans for all other state funded programs, such as Workforce Development and Voluntary Prekindergarten, should continue to include an expenditure reduction of 4 percent. This will allow districts to maintain fiscal stability until the actual status of revenue collections is known.

To see the governor's office memo to agency directors outlining the hold back, click here.