Archived Information

School Finance: Circuit Breaker

FY 2001 Special Education Loan Program

PURPOSE: To provide financial loans to local school districts, regional school districts, and Commonwealth charter schools facing extraordinary special education costs in FY'01.

AVAILABLE FUNDING: $1,000,000 appropriated in line item 7061-0025 of the FY 01 general appropriation act.

LOAN REPAYMENT TERMS: Funds will be awarded in the form of five-year, no interest loans payable annually to the Commonwealth of Massachusetts, with one-fifth payable on March 31, 2002 and one-fifth each succeeding March 31, through 2006. Repayments will be deducted from quarterly local aid distributions, or from quarterly tuition payments for Commonwealth charter schools.

ELIGIBILITY REQUIREMENTS:Districts may borrow up to the amount by which the current year's estimated special education expenses exceed 110% of the district's average special education expenses for the last three years. Eligible expenses include instructional costs and private special education school tuition as described in the Department's Guidelines for Student & Financial Reporting but do not include transportation costs. The three-year average expenses by district are posted on the DOE School Finance web site.

APPLICATION PROCESS: Applications should be in the form of a letter from the superintendent or director sent to:

Jay Sullivan
Director, School Business Services
Massachusetts Department of Education
350 Main St.
Malden, MA 02148

Applications will not be accepted by e-mail or facsimile.

Please indicate in the application letter: (a) the district's total estimated special education expenses (as defined above) for FY'01; and (b) the requested loan amount. Applications must be accompanied by a certified copy of the vote of the school committee, or board of trustees for Commonwealth charter schools, approving the application.

Eligible applicants will receive preliminary approval from the Department within fourteen days of receipt. For final approval and disbursement of funds, the municipality or regional school district must obtain and document all necessary local approvals, as described below.

LOCAL APPROVALS OF DEBT OBLIGATIONS: Applicants must comply with all requirements established by statute, local charters, and regional agreements with respect to the authorization of debt. Within 90 days following the Department's preliminary approval of the application, the applicant shall provide to the Department of Education notes certified by the director of accounts in the Department of Revenue. No funds will be disbursed until the receipt of such notes. The Commissioner of Education may extend the 90-day deadline when needed to accommodate town meeting schedules.

APPLICATION DEADLINE: None. Applications will be considered and approved on a first-come, first-served basis as long as funds are available.

FOR FURTHER INFORMATION: Contact Jay Sullivan at 781-338-6594 or jsullivan@doe.mass.edu.