The Massachusetts Board of Elementary and Secondary Education
House Ways and Means Committee's FY12 Budget Recommendations
Yesterday, the House Ways and Means Committee (HW&M) released its Fiscal Year 2012 Budget Recommendations. The HW&M budget plan is based on slightly higher FY12 projected revenues for the Commonwealth from projected current year collections and the Department's (ESE) total FY12 funding reflects these projected increased revenues.
The HW&M FY12 total budget recommendation for DESE of $4.481 billion represents an increase of $214 million above the FY11 spending authority (General Appropriations Act (GAA) and FY11 Supplemental Budget) of $4.267 billion. The appropriation levels recommended by HW&M for increases are consistent with budget priorities identified by the Board. The bulk of this increase relates to Chapter 70 (7061-0008), which accounts for $139.3 million, and the special education Circuit Breaker program (7061-0012), $80 million.
The following summarizes the HW&M budget in relation to the Board of Elementary and Secondary Education's budget priorities for FY12:
Secure Funding for Local School Districts
HW&M has recommended $3.991 billion for Chapter 70 state aid (7061-0008), representing an increase of $139.3 million over FY11 and $0.3 million above House 1. This significant increase ensures that all districts will continue to receive at least their foundation level of funding. It does not, however, offset the loss of the $200 million one-time federal Education Jobs grants that districts received in FY11 as a supplement to Chapter 70 state aid. The net result is a reduction of two percent in overall Chapter 70 (state + federal) funding. Some districts may see larger cuts, while others may see smaller cuts or even increases, depending on their foundation budget requirements. Many districts are already planning to carry over a portion of their Education Jobs grant into FY12 to help mitigate this situation.
HW&M recommends an increase of $80 million in the special education Circuit Breaker program (7061-0012), which, similar to the Chapter 70 foundation aid situation, was supplemented in FY11 (and FY2010) by ARRA IDEA federal funding (approximately $280 million over the course of the 2 years). The Circuit Breaker recommendation returns the FY12 funding level to $213 million, nearly that of FY2009, which was $215 million. The HW&M recommendation is consistent with House 1.
HW&M provides an increase of $1.66 million for Charter School Tuition Reimbursements (7061-9010)
HW&M supports the Reserve for Shortfall of Federal Impact Aid, 7061-0033, established in FY11 in the amount of $1.3 million.
Reinstate MCAS History and Social Science Test Requirement
HW&M did not provide funding to reinstate this requirement.
Increase Funding for English Language Learner Programs
HW&M level funded this account (7027-1004) at $0.355M.
Consolidated Literacy Line Item Account
HW&M did not support the consolidation of the three literacy accounts into the Consolidated Literacy Program (7010-0033). The programs are level funded at the FY11 appropriation levels.
Ensure DESE Capacity to Close the Proficiency Gaps and Manage Programs
Supports to Close the Achievement Gap (7061-9404) are level funded at the FY11 value of $9.1 million. The House 1 increase of $0.561 million was not supported.
Targeted Assistance to Schools and Districts (7061-9408) is being level funded at the FY11 value $6.74 million. The House 1 increase of $0.951 million was not supported.
HW&M did not create dedicated funding for the administration of the Charter School Program.
HW&M level funded the Office of School and District Accountability at the FY11 value of $0.939 million. There is no additional funding to do more district performance reviews.
The Department's main administration account is level funded at the FY11 value of $12.676 million.
Special Education in Institutional Settings (7028-0031) was funded below its FY11 level by $0.130 million.
The Educator Certification (7061-9604) account is replaced by the Teacher Certification Retained Revenue (7061-9601) account and is funded $0.102 million below our FY11 spending level. This further reduction from the current funding level will further negatively affect the processing times for educator licenses.
Other Account Information
HW&M did not support the House 1 increase of $0.290 million for the School Breakfast Program. It is level funded at the FY11 appropriation of $4.1 million.
The Educator Certification (7061-9604) account is replaced by the Teacher Certification Retained Revenue (7061-9601) account and is funded $0.102 million below our FY11 spending level.
The METCO account (7010-0012) was funded $1.5 million below its FY11 funding level.
The YouthBuild Programs (7061-9626) and Alternative Education (7061-9614) were eliminated in the HW&M recommendations.
Connecting Activities (7027-0019) was not funded in the HW&M recommendations; however, a FY11 supplemental funding level of $2M will be carried forward into FY12.
The remaining DESE accounts are basically level funded at the FY11 amounts.
The attached chart compares the HWM FY12 House 1 budget to the current FY11 GAA and the Governor's House 1 recommendations. Variances are identified by appropriation.
If you have any questions regarding this budget, please feel free to call me.
Enclosure
