Chapter 70, General Aid to Education Cut
As you are aware the budget submitted by Governor Romney increased Chapter 70 funding by approximately $73 million over projected 2003 levels for a total distribution of $3.331 billion. Also, the Governor’s funding for Chapter 70 merged several grant programs (class size, kindergarten and early literacy grants) some of which (kindergarten and early literacy) were restored by House Ways and Means.

The House Ways and Means budget cuts approximately $223 million more from Chapter 70 than did the Romney budget, thereby reducing Chapter 70 funding by $150 million from the 2003 level. It has been reported that about 170 school districts would have their aid reduced by up to 20% after the proposed House budget reduces those communities to their foundation levels. You may refer to the MASC website for your district’s Chapter 70 distribution.

School Building Assistance Funding for F.Y. 04 First Annual Payments Suspended
The Romney budget proposed to fund School Building Assistance racial imbalance projects at about $7 million, and non-racial imbalance projects at nearly $15 million. The House Ways and Means proposal contains no funding for the above referenced accounts.

In addition, an outside section of the House budget directs the Board of Education to not accept any applications for school building assistance until July 1, 2007.

Budget Contains Funding for Special Education Circuit Breaker
The F.Y. 03 budget funded the so-called 50/50 account to pay for certain costs of out of district special education at about $71 million. The Governor’s budget proposed to implement the circuit breaker law, which would reimburse in district special education programs at 75% of approved costs that exceed three times the state average per pupil foundation budget, and reimburse out of district programs at 50% of approved costs that exceed four times the state average per pupil foundation budget. The Governor proposed to merge the 50/50 account with an additional $45 million to bring the total appropriation to $115 million.

The House Ways and Means budget proposes to increase funding from the F.Y.03 50/50 account by nearly $60 million to fund the circuit breaker at $129.5 million. Furthermore, the House budget by striking the definitions of "in district" and "out of district" placements requires that approved instructional costs shall be reimbursed at 75% of costs that exceed four times the state average per pupil foundation budget. The House proposal similar to the Romney budget requires that the circuit breaker also fund eligible foster students at 100% of all approved costs that exceed four times the state average per pupil foundation budget.

Public School and Regional School Transportation
Both the Governor’s and House Ways and Means budgets propose the elimination of general school transportation funding, which in F.Y.03 amounted to $52 million. The Governor proposed to fund Regional School Transportation at $21 million which was increased by House ways and Means to $26.4 million. Regional transportation is now proposed to be funded at 50% from the recent 100% state funding.

Charter School Funding to Sending Communities Restored
The Romney administration proposed to eliminate the line item controlling the funding sent to sending charter school districts. House Ways and Means has significantly increased the prior level of sending districts charter school aid to $46.5 million.

MCAS Remediation Funds Cut by 80%
The Romney budget provided level funding of $50 million for MCAS remediation. The House Ways and Means has proposed a reduction to $10 million for such remediation.

Early Education, Adult Education, Kindergarten and Pothole Monies Restored by House
The Pothole account has not been funded since F.Y.01 and has been restored by House Ways and Means in the amount of $10 million. This fund is intended to meet unanticipated or extraordinary increases in the minimum required local contribution; to meet extraordinary increases in enrollment, and to
assist regional school districts in offsetting unanticipated funding losses.

Early childhood education grants were funded at about $94 million in F.Y.03. The Romney budget proposed moving most of this program to the Health and Human Services Secretariat. House Ways and Means proposes retaining the program within the department of education and proposes a $74 million level of funding.

The Romney budget eliminated Kindergarten Expansion grants which had been most recently funded at $28 million. The House has proposed restoring funding for these grants at $23 million.
Governor Romney proposed the elimination of early literacy programs as a separately funded account. The House restored the early literacy program and reduced the level of funding to $7.7 million. The House also included funding for early intervention literacy programs designed for pre-special education referral and funded the account at $1.9 million.

The Romney budget proposed transferring Adult Education responsibility to Higher Education. The House has funded Adult Basic Education services by level funding at about $28 million, and retained the jurisdiction of the Board of Education.

Student and School Assessment Grants Restructured
The House proposed a $200,000 increase to $18.8 million to fund the student and school assessment grant account. The proposed appropriation would result in an 80% reduction in grants and includes language targeting the remaining funds for students in the classes of 2003, 2004 and 2005 who score in level 1 on the MCAS exam and are at risk of not graduating.

Various Grant Programs and Office of Education Quality and Accountability Restored in House Budget
The House proposes restoring the Office of Education Quality and Accountability and its $2.5 million appropriation. This agency provides Education Reform Audits.

The education technology program was restored and its budget was slightly reduced to $770,000.
The House restored the school to work programs with proposed funding of $1.5 million, and the school to career program with proposed funding of $4 million.