Archived Information

DOE Budget

FY04 State Budget Update

2/27/03

Governor Romney has released his budget recommendations for fiscal year 2004. The complete budget document is available on the Mass.gov website. A summary of the key elements for K-12 education is included below.

Local officials should understand that these proposals are subject to review and approval by the Legislature. It is likely that local budgets will need to be adjusted in the summer, after final enactment of the state budget, to reflect the inevitable changes which occur during the legislative process.

Overall, K-12 programs are essentially level funded in this budget compared to FY03.

Chapter 70 - The Governor has proposed a major restructuring and expansion of the chapter 70 program, with a $73 million increase in chapter 70 state aid. Detailed information on chapter 70 will be posted elsewhere on the DOE School Finance website.

Special education - The Governor's budget provides for implementation of the special education circuit breaker program on July 1, replacing the existing "50/50" and abandoned children programs. A funding level of $115 million is proposed, representing a significant increase in state support for special education services. A separate outside section changes the proposed reimbursement rates for FY04 only to 75% for in-district services and 50% for out-of-district services, as the state's fiscal situation does not allow full funding of the originally planned 80% and 65% rates. The budget also proposes a freeze on rate increases for approved private special education schools.

School construction - The proposed budget fully funds all previously awarded school construction grants, but does not provide any authorization for new grants for projects currently on the waiting list.

Charter school tuition reimbursements - Extra funding is provided through the chapter 70 formula to partially reimburse districts with growing numbers of charter school and school choice students.

Transportation reimbursements - Transportation costs in regional districts are funded at $20.85 million, representing a fifty percent reduction from FY03 funding levels. Reimbursements for transportation costs in all other districts have been eliminated.

Categorical grant programs - Several categorical grant programs are proposed for elimination, including grants for class size reduction grants, early literacy programs, and full-day kindergarten. To partially offset these reductions, the foundation budget under the chapter 70 program has been increased. A new grant program is proposed for full-day, English immersion kindergarten classes ($9 million).