Chapter 70 General Aid to Education
In total, $3.139 billion is distributed in direct aid to school districts in S.2004, which represents an approximate $20 million increase over the budget as proposed by House Ways and Means and about a $92 million decrease from the Governor’s budget proposal. The proposed Senate budget is $120 million less than the F.Y.03 appropriation. The F.Y. 04 proposed Senate budget requires $2.912 billion to make up the difference between foundation and required local spending. Another $227 million is distributed to cities and towns to assure that no district experiences a cut of more than 15.5%. You may access your communities local aid figure through the MASC website.

Pothole Aid
In an attempt to ameliorate the reductions in Chapter 70 funding the Pothole account has been added to S.2004 and provides a $7 million proposed appropriation. 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. The House also included a Pothole account and provided $10 million funding.

Charter Schools
The Senate Ways & Means budget adjusts the charter school tuition formula by excluding capital costs in the calculation of average spending. This change brings charter school tuitions closer to the actual operating costs of sending districts. The House Ways & Means budget increased the level of sending districts’ charter school aid to $46.5 million. S.2004 does not provide any funding for charter school aid for sending communities.

Senate Establishes Chapter 70 Working Group
The working group shall be made up of the President of the Senate, the Senate Chair of the Jt. Committee on Education, the Chair of the Senate Committee on Ways and Means, the President Pro-tempore of the Senate and the Minority Leader, or their designees. The working group shall address matters including, but not limited to, aid and required local contributions determined under chapter 70 and shall consider how to allocate state funds equitably. The group shall submit recommended legislation to the Jt. Committee on Education by September 15, 2003.

MCAS Remediation
The Senate Ways and Means Committee has proposed to fund MCAS remediation at $45 million. The Romney budget provided level funding of $50 million for MCAS remediation; and House Ways and Means recommended a $10 million appropriation.

MCAS Sped Exclusion
The budget as passed by the House of Representatives was amended to include a provision that excluded special education students from the graduation requirement imposed by the MCAS exam. This amendment was adopted by a vote of 117 to 37. As you are aware, MASC at the last few delegate assemblies has overwhelmingly adopted resolutions which are in large part reflected in the House amendment. We therefore urge you to communicate with your Senators in support of the anticipated offering in the Senate of an amendment similar to the House amendment.

Public School and Regional School Transportation
The Senate Ways and Means budget provides no funding for general school transportation, but provides $30 million funding for regional school transportation. Both the Governor’s and House Ways and Means budgets also proposed the elimination of city and town school transportation, 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.

Lottery and Additional Assistance Cuts
S.2004 recommends that $661 million in lottery proceeds and $378 million in additional assistance be distributed to cities and towns as unrestricted revenue. These distributions represent across the board cuts of 6% ($69 million) from 2003 levels, or 15% ($184 million) relative to the original fiscal year 2003 lottery and additional appropriation, prior to mid-year emergency spending cuts.

Special Education Circuit Breaker Funding
This budget includes funding for the reimbursement system passed in fiscal year 2001 budget known as the special education "circuit breaker." It reimburses a share of costs over a threshold of $28,000: districts are responsible for all costs up to $28,000, but above that amount, the state will pay 75% of the costs.

In light of fiscal constraints, the Committee recommends a funding level of $115 million, some $20-25 million below the projected costs of the full 75% reimbursements. This funding level represents a commitment of $45 million in new money. The House version of the budget increased funding by $29.5 million, a $60 million apportionment of new money. The Governor proposed the same funding as the Senate.
Subject to pro-rating in fiscal year 2004, 100% of costs above the $28,000 threshold will be reimbursed for children placed in district by the state, including state wards, residents of Department of Social Services group homes, and the children of homeless families placed in temporary housing by the Department of Transitional Assistance.

A tuition freeze on out of district special education placements offers temporary relief to districts struggling with cuts to their budgets, with exceptions made for programs that in fiscal year in 2003 charged less than the full amount they were permitted to charge.

School Building Assistance Funding for F.Y. 04 Projects Included in S.2004
The House Ways and Means budget suspend the authorization for first annual payments in F.Y.04 for School Building Assistance. The Senate has provided up to $7 million for F.Y.04 school building projects to eliminate racial imbalance, and up to $15 million for school projects not subject to racial imbalance.
Kindergarten, Adult Education, Early Education, Class Size Reduction Grants and Elimination of Mandatory Tuberculosis Testing

Kindergarten grants were funded by S.2004 at the level of $19.5 million, which represents a decrease of approximately $3.5 million from the House Ways and Means budget.

The Romney budget proposed transferring Adult Education responsibility to Higher Education. The House and Senate Ways and Means Committee have funded Adult Basic Education Services at the level of about $28 million, and retained the jurisdiction of the Board of Education.

The Early Childhood Education grants were funded at about $94 million for F.Y.03. Both the Senate and the House have proposed funding of approximately $74 million.

Class size reduction grants are maintained at $18 million to assist the continuation of efforts to bring small class sizes and individualized attention to children in kindergarten to grade 3 in high poverty schools. The House Ways and Means budget did not fund this account.
For many years school employees were required to be tested for tuberculosis. S.2004 eliminates this mandate.

Early Literacy Grants Eliminated in S.2004
The House of Representatives provided $7.7 million in funding for Early Literacy Grants, while S.2004 eliminates this account.