Archived Information

School Finance: Circuit Breaker

Memorandum

First quarter payments for FY04 Circuit Breaker were processed last week. Along with this memo, we are posting a spreadsheet listing these payments on our website . As stated in the Commissioner's memo dated November 12, 2003, because this is the first year of data collection and we still need to verify a significant number of claims, we need to limit the first quarter payment to one-fourth of the estimated payment for the entire year. We will catch up with the planned payment schedule later in the year, as we complete our review of the initial submissions. In order to reconcile the first payment, detailed student information for your district can be found in the Department's Security Portal under the SPED File Exchange Dropbox.

Also, please keep in mind that the Department will be making some payments directly to private schools, which will reduce the amount of the direct payment to districts. Some districts have chosen to join the pilot program where districts will pay 100% of the residential tuition costs. Pilot participants will receive all reimbursements directly rather than a portion to be paid directly to the private schools. A listing of participating districts is also posted on our website.

While we are still anticipating DOR's issuance of an IGR on the subject of accounting, funds received from Circuit Breaker should be handled in accordance with Chapter 71B Section 5A(e) which states "...Upon receipt of reimbursements paid under this program by the municipal treasurer, in the case of local school districts, or the regional district treasurer in the case of regional school districts, such amounts shall be recorded by the municipality or district as additional appropriations to the school committee, without any further action being required on the part of the local appropriating authority."