Archived Information

DOE Budget

8/9/06

FY07 State Budget Update

The Governor signed the FY2007 state budget on July 8 (chapter 139 of the acts of 2006). Here is a summary of the major provisions relating to school finance and state aid programs. Information on changes to categorical grant programs will be distributed through the appropriate DOE program units.

Chapter 70

The final chapter 70 appropriation of $3,505.5 million represents a 6.6% increase over the FY06 funding level. Required local contribution and net school spending requirements for each district have been posted on this website.

The budget also includes $4.5 million for foundation reserve ("pothole") awards, and establishes some additional categories for eligibility. Application instructions and eligibility criteria for these funds are also posted on the website.

Special Education Funding

The circuit breaker program heads into its fourth year of operation with a $207.7 million appropriation. At this point in time we expect that the reimbursement rate for FY07 payments will be near the statutory 75% rate. We will provide an updated estimate after districts have finished reporting their FY06 costs.

The program again includes a $3 million reserve for districts experiencing extraordinary increases in their current year (FY07) costs. It also includes continuing funding for a pilot program to study the role of collaboratives in providing cost effective transportation services for special education students.

Tuition rates for approved private schools have been increased by 3.35% for inflation by the Operational Services Division.

Transportation Funding

Regional school transportation funding has been increased by 23.3%, to $55.5 million. Please note that the amounts listed for each district on the FY07 cherry sheets are only estimates, based on last year's claims. The actual FY07 entitlements and payments will be calculated later this year based on each district's actual FY06 spending as reported on the end-of-year financial returns. The appropriation includes $4ook for a study and pilot program to improve efficiency and requires the Department to conduct audits of Regional School transportation claims.

The transportation reimbursement program for students attending out-of-district vocational programs under chapter 74 has been funded at $2 million, an increase of 25% over the FY 06 funding level.

Charter School Reimbursements

The budget includes $73.79 million for the facilities component of the reimbursement formula and for tuition reimbursements to districts. This represents a 13.7% increase over the FY 06 funding level.