FY20 Budget Development Update: HWM Recommendations & BESE Meeting Summary

FY20 Budget Development Update HWM Recommendations BESE Meeting April 23, 2019

Table of Contents I. Overview of Chapter 70 and Charter Reimbursements II. LEA Reimbursement Programs III. School Improvement Resources IV. DESE Administered Programs

FY20 House 1 Budget Overview I. Overview of Chapter 70 and Charter Reimbursements

Overview of Chapter 70 and Charter Reimbursements HWM FY20 Chapter 70 is $5.125 billion, a $218.7 million increase (4.4%) over FY19 HWM budget implements foundation budget rate changes, above inflation, in the areas identified by the FBRC based on the goal rates proposed in H.70 o HWM proposes faster implementation in some areas HWM budget proposes the same charter tuition reimbursement framework as House 1, adding $7 million in additional funding

HWM proposed rate changes above inflation in the four areas identified in the FBRC report Benefits and fixed charges: Closes 1/6thof the gap toward the H.70 goal rates, compared to 1/7thproposed in House 1 Economically disadvantaged deciles: Closes 1/6thof the gap toward the H.70 goal rates for deciles 6-10, compared to 1/7thproposed by House 1 o Does not fund the high needs concentration increment proposed in H.70 and House 1 English learners (ELs): Includes all reported ELs in foundation enrollment (without assessing ACCESS performance) and maintains the House 1 EL rates o Differentiated EL incremental rates by grade span, substantially increasing EL rate for high school students. Out-of-district special education: Closes 1/6thof the gap toward the goal rate proposed in H.70, compared to 1/7thin House 1

HWM rate changes compared to House 1 HWM $137.2M House 1 $129.9M Full funding of foundation and base aid requirements, reflecting current rate of inflation Further increase in Foundation Budget formula for health care, including benefits for retirees Additional increase in the factor for educating English language learners $37.2M $30.6M $15.1M $13.6M $12.2M $12.8M Increased support to districts serving highest concentration of economically disadvantaged students Minimum aid: House 1 $20/pupil, HWM $30/pupil $11.7M $7.9M Increase in funding to help districts meet rising out-of-district special education costs Introduction of a new enrollment category for students in Early College and Career Pathways $218.7M $200.3M Total increase $5.3M $4.3M N/A $1.2M

Local contributions The aggregate wealth model continues to be in effect. For municipalities with required contributions above targets, the requirement is reduced by 100 percent of the gap. Cities and towns with combined effort yields greater than 175% of foundation have required local contributions set at not less than 82.5 percent of foundation.

Charter school reimbursements restructured Return to a 3-year, 100%/60%/40% schedule for transitional aid Transitional aid more closely tied to enrollment growth Supplemental aid for districts with high charter tuition costs and relatively low Chapter 70 aid $23 million increase over FY19 with full phase-in of the reimbursement program by FY21 Facilities tuition rate is increased to $938 per pupil in FY20 and indexed to inflation in subsequent years o Facilities tuition continues to be reimbursed at 100%

FY20 House 1 Budget Overview II. LEA Reimbursement Programs

LEA Reimbursements Special Education Circuit Breaker oSpecial Education Circuit Breaker reimbursement is increased by $9.5M over FY19 level. Increase of $4M to support the Department of Developmental Services voluntary residential placement prevention programs. $5M in claims reimbursement funding beyond House 1. o71% estimated claims reimbursement rate.

LEA Reimbursements Transportation Reimbursements oRegional School Transportation increased by $5M over FY19. Estimated reimbursement at 78%-79%. oHomeless Student Transportation increased by $1M over FY19. Estimated reimbursement at 36%-37%. oNon-Resident Vocational School Transportation was not funded by HWM bill.

FY20 House 1 Budget Overview III. School Improvement Resources

School & District Assistance HWM did not support the Governor s sales tax modernization initiative to provide multi-year funding: o$50 million to help drive quality improvements in low-performing schools. o$30 million to help local school districts address their school safety need. Maintains FY19 increased level of $12.5M for Targeted Assistance into FY20.

School & District Assistance HWM did recommend a new district support account to provide: o$6M to address the academic needs of districts with high percentages of low-income students. o$10.5M in transitional aid to districts negatively and significantly impacted by the implementation of the economically disadvantaged measurement standard used in the Ch. 70 aid calculation. METCO Program is increased of $1.46M over FY19.

School & District Assistance After-Schools Grants increased by $1M. $2M for Supporting Healthy Alliances Reinforcing Education to fund an integrated student wellness grant program addressing non- academic barriers to student success.

FY20 House 1 Budget Overview IV. DESE Administered Program Highlights

DESE Administered Programs Teacher Certification Retained Revenue account increased by $400,000. Increase designed to support the Office of Professional Practices Investigations and the Office of Educator Licensure. Adult Basic Education increased by $4.75 million over FY19. New Digital Literacy and Computer Science education account funded at $1M.

FY20 House 1 Budget Overview Questions ?