Archived Information

School Finance: Circuit Breaker

FY99 Special Education Loan Program

Purpose: To provide financial loans to school districts facing extraordinary and unanticipated special education costs in FY99.

Funding available: $266,891 appropriated in line item 7061-0015 of the FY99 general appropriation act.

Loan repayment terms: Funds will be awarded in the form of three-year, no interest loans payable to the Commonwealth of Massachusetts. One-third of the principal amount will be due and payable on March 31, 2000; one-third on March 31, 2001; and one-third on March 31, 2002.

Eligibility requirements: Funds from this program may be used to offset eligible costs of special education services. Eligible costs are those which meet the following three criteria:

1. The costs are for special education services provided in accordance with an approved IEP.

2. The costs were unanticipated. The district must demonstrate that the costs could not have been anticipated at the time the FY99 budget was approved because they relate to either (i) students who moved into the district, or for whom the district assumed responsibility, subsequent to the adoption of the budget; or (ii) new services for an existing student whose IEP was written or amended subsequent to the adoption of the budget.

3. The costs are excessive. This can be demonstrated in one of two ways:

   1. The annualized cost for a particular student exceeds $22,100, or
   2. The total of all unanticipated special education costs exceeds one percent of the district's net school spending requirement for FY99.

Application process: Applications should be in the form of a letter sent to:

Jeff Wulfson
Chief Financial Officer
Massachusetts Department of Education
75 Pleasant Street
Malden, MA 02148

Please indicate the total amount requested, and provide appropriate documentation as to eligibility. Applications on behalf of local school districts must be signed by the mayor, city or town manager, or chairman of the board of selectmen, as appropriate. Applications on behalf of regional school districts must be signed by the superintendent. Applications will not be accepted by e-mail or facsimile.

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

Local approvals of debt obligations: The muncipality or regional school district 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 municipality or regional school district 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 Jeff Wulfson by phone (617-388-3300 ext. 706) or by e-mail (jwulfson@doe.mass.edu).