LEGISLATIVE ALERT
House Ways and Means Budget, H. 4000
House Ways and Means Recommends Additional Chapter 70 Monies
On April 13, 2005 The House Ways and Means Committee released its version of the state budget for F. Y. 06. Amendments to the budget are due on April 15 by 5 P.M., and debate on the budget is scheduled to begin on April 25 and is expected to last, at least, through the week.

The House Ways and Means Budget followed the Governor’s Budget in recommending an increase of $77 million in Chapter 70 funding. It is anticipated that the proposed increase in Chapter 70 will meet the foundation budget obligation of the Commonwealth, and also ensure that no school district receives less than it received in F.Y. 05. H. 4000 also proposed an increase of $2 million for kindergarten grants, including $1 million to expand the number of full day classrooms. House Ways and Means provides $1.1 million to establish a certificate of occupational proficiency for vocational school programs, as was recommended in the Governor’s Budget. H. 4000 increased by $1.5 million the funding for Adult Basic Education programs over the F.Y. 05 appropriation; however, the Governor had proposed an $8 million increase to this line item. H. 4000 also provides an increase of $1 million for school intervention and targeted assistance, an increase of $250,000 for classroom behavior and alternative education grants, and an increase of $150,000 for gifted and talented programs.
School Building Authority

One of the major successes of the prior legislative session was the establishment of a School Building Authority with revenue to reduce the backlog of over 400 projects, which are awaiting funding. Last year the legislature provided a bond authorization and other monies to establish the Authority. MASC was pleased with the appointment of the new Executive Director of the Authority Katherine Craven, who had previously served as the Counsel to the House Ways and Means and the Speaker of the House. In order to facilitate the clearing of the project backlog the House Ways and Means Budget proposed transferring an additional $93 million, which will help the Authority to meet its stated goal of providing funding to all projects on the approved list within three and a half years.
Special Education Circuit Breaker
Current law requires that the cost for special education instruction shall be reimbursed at 75% of all the approved costs that exceed 4 times the state average per pupil foundation budget. Reimbursements for eligible costs for certain special education placements rose from approximately 35% in fiscal year 2004 to approximately 70% in the current fiscal year. This account and its predecessor, the so called 50%/50% account, have traditionally run deficits during the year that require a supplemental appropriation. The Governor had proposed level funding the circuit breaker line item at $201.6 million, and House Ways and Means has also proposed level funding of that account. MASC will work towards fully funding this account during the F.Y. 06 budgetary process.
Charter School Reimbursements
The House Ways and Means Budget reimburses sending school districts for charter school tuition in the amount of $50 million pursuant to chapter 71, § 89. For F.Y. 05 this line item was funded at $37.7 million. The Governor had proposed the same funding as H. 4000, but had made $12.4 million contingent upon the removal of the charter school tuition cap for school districts that place in the lowest 10% of all districts statewide for two consecutive years, a contingency that was eliminated by the House.

The House Budget also includes $14.7 million to ensure that no charter school receives less funding in tuition payments in F.Y. 2006 than it received in F.Y. 2005.
MCAS Remediation and Test Expansion
In the F.Y. 05 budget MCAS Remediation Grants were funded at about $15 million. House 1 had proposed increasing the funding to $20 million. The House Ways and Means Budget recommends a reduction in this account to $10 million.

Funding for student and school assessments including the administration of MCAS has been increased from the $20 million recommended by the Governor to $23.3 million contained in House 4000. The increase in this account appears, in part, to allow for grants to districts to develop portfolio assessments for certain special education students.
Regional School Transportation and Out of District Vocational Transportation
Regional School Transportation has been level funded by House Ways and Means at the F.Y. 05 level of $38 million, which is below the statutorily required level of funding. It is anticipated that amendments will be offered to the budget to increase this line item.

The statute governing out of district vocational transportation was amended twice during F.Y. 05. Currently the statute (G. L. c. 74 § 8A) allows, subject to appropriation, for reimbursement to the full extent of the amount expanded for out of district transportation. House Ways and Means funded this account at $1.6 million.
Pothole Money
The so called Pothole account was funded in F.Y. 05 in the amount of $16.8 million. This account provides funding for school districts that experience extraordinary increases in enrollment and significant prior reductions in chapter 70, among other criteria. Neither the Governor’s Budget nor the House Ways and Means Budget has recommended funding for this account.




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