To: Massachusetts school committee members and superintendents
From:  Stephen J. Finnegan, Esq.
Date:  January 30, 2001


SUBJECT: House I: Governor Cellucci’s Budget Recommendations

$171 Million Increase to Chapter 70

The state budget, submitted by Governor Cellucci, contains a $171 million increase in Chapter 70. Required school spending from state and local governments now stands at $7,465 per student.

Under separate legislation not yet filed, the Governor has stated that the foundation budget will be augmented to better reflect the demands of special education and educational technology, and to better target state aid to those communities with growing enrollments and limited ability to pay. The anticipated legislation will also attempt to simplify the formula. The $171 million of additional Chapter 70 aid, as contained in House I, is being distributed pursuant to the new formula. It has been reported that approximately 10 percent of the municipalities will receive no increase in funding for FY02 due to the new formula distribution. As you are aware, there is a Foundation Budget Review Commission, which is currently meeting to recommend changes in the Foundation Budget. MASC's Immediate Past President Nancy Stinger is a member of this Commission, and we will keep you apprised of their findings. It is important to note that the proposed distribution contained in the Governor's budget is not the final word on this matter.

Forty-six New Projects Funded through School Building Assistance

The Governor's budget contains an increase of $47 million to the School Building Assistance account. The proposed new monies will fund 46 new school projects (9 Level 1 projects and 37 Level 2).

Increase in Racial Imbalance Funds
While the Governor's budget does not directly fund the two line items used in past budgets to represent so-called "Chapter 636" funding, the combination of a
$3M increase in "programs to eliminate racial imbalance" and a new $13.2M program of grants for education improvement  (parental outreach, school choice,
and other educational improvement activities) appear to cover the same ground as Chapter 636.

Regional School Transportation Fully Funded

Last year was the first time in many years that regional school transportation was fully funded. MASC and certain vocational groups were able to secure over three year’s full funding of regional transportation and we are pleased to see the state's continuing commitment in this area, with a proposed increase of $2.4 million.

Funding for MCAS Remediation Increased

MCAS remediation funds will be increased by $6 million to a total of $46 million. The Governor proposes to change the current expenditure grant process to a formula distribution. This change will automatically distribute assistance based upon the number of students scoring in Level I on the MCAS exams.

Office of Educational Quality and Accountability

This budget recommendation includes $3.9 million for the Office of Educational Quality and Accountability. This is an independent office designed to monitor and ensure that all of the Commonwealth's school systems meet the Administration's call for high standards and academic excellence.

Technology money not available in FY2002 budget

The Governor has proposed adding $30 per student to the foundation budget for technology but not until FY2003 and this budget proposes a repeal of the $55M trust fund established in the FY2001 budget. If both of these actions occur there will be no state funding for technology at the district level this year.

Special Education Changes

The Governor has proposed four significant changes in this budget package relating to special education.

The funding formula definitions will change as follows:
• Assumed tuitioned-out special education allotment: add   9.5 percent of pre-school enrollment.

• Assumed in-school special education enrollment: FY2002   increase from 3.5 percent to 3.75 percent of foundation enrollment. FY2004 increase from 3.75 percent to 4.0 percent of foundation enrollment.

The Special Education Pooled Risk Program created in the FY01 budget will be repealed.

The Special Education Zero-Interest Loan Program created in the FY01 budget will be repealed.

The Special Education "Circuit Breaker" program created in the FY01 budget to begin in FY03 will be moved up to begin in FY02.

New and Expanded Initiatives

• $2.5 million for the Teacher Induction Mentoring program for the development of a mentoring program for new teachers.

• $1.2 million for one-time stipends to students who receive Koplik certificates of academic mastery.

• $1 million for Teacher Differentiated Compensation to help recruit and retain teachers in critical areas.

• $800,000 to establish two Commonwealth Teaching Centers for the preparation of teachers. This initiative also includes the creation of two campus-based
charter schools.

• $4.5 million for increased funding for student and school assessment.

• $4.0 million to provide free, nutritious breakfasts to all students in elementary schools where more than 60 percent of the students are eligible for free or
reduced-price meals.

• $1.25 million for matching grants to recruit and train mentors.

• $500,000 for the Attracting Excellence to Teaching program to increase loan assistance to teachers.

• $350,000 for teen dating violence prevention grants.

Office of School Readiness

The new office of school readiness within the DOE will oversee $150M in early childhood education grants, Kindergarten grants, and early literacy grants.

Changes in House Leadership

Speaker of the House Tom Finneran (D-Boston) has announced Committee assignments for the 2001-2002 session.  Key changes include Rep. Sal DiMasi (D-Boston) moving from Assistant Majority Whip to Majority Whip and Rep. Lida Harkins (D-Needham) filling DiMasi's former job.  Rep. John Rogers (D-Norwood) replaces Rep. Paul Haley (D Weymouth), who is leaving the Legislature, as chair of the House Ways and Means Committee.  Rep. Peter Larkin  (D-Pittsfield) replaces Harkins as the House Chair of the Joint Committee on Education, Arts, and Humanities. Larkin moves to Education from the chair of the Committee on Commerce and Labor where he has worked on issues related to child labor laws and workforce training. Rep. Larkin has sponsored legislation that would change graduation requirements for vocational students to be focused on vocational competency.