The Massachusetts Board of Elementary and Secondary Education

Governor's FY2011 House 2 Budget Recommendations

To:	Members of the Board of Elementary and Secondary Education
From:	Mitchell D. Chester, Ed.D., Commissioner
Date:	February 19, 2010

Today, the Governor released his Fiscal Year 2011 Budget Recommendations "House 2" to the Legislature. The Governor's FY2011 Budget is based on slightly higher FY2011 projected revenues and the Department's (DESE) FY2011 total funding reflects these projected increased revenues.

The Governor's Chapter 70 recommendation of $4.048 billion is $178.5 million above the actual state funds distributed via the FY2010 Chapter #70 distribution formula. However, last years' Chapter #70 distribution included $168.0 million of federal ARRA Stabilization Funds, to bring the total Chapter #70 distribution to $4.038 billion. The total FY2010 Chapter #70 distribution of $4.038 billion is comprised of $3.870 billion from state funds and $168 million from federal ARRA Stabilization Funds.

The Governor's FY2011 total budget recommendation for DESE of $4.477 billion is essentially level funded when you account for the $168 million of federal ARRA Stimulus Funds that supplemented this years' Chapter #70 distributions. After accounting for the replacement of the FY2010 ARRA Stimulus funds, the Department's bottom line budget is $13.2 million above the current FY2010 post 9C amounts, with $10.5 million or 80% allocated to Chapter #70. The balance of the Department's budget increase of $2.7 is allocated specifically to 6 non-Chapter #70 accounts.

The Governor has recommended funding for DESE non-Chapter 70 accounts, totaling $428.7 million. This represents an increase of $2.7 million from our FY2010 post 9C account appropriated level of $426.0 million. Of the 31 DESE accounts that are funded in FY2010, 23 are level funded at the current FY2010 post 9C appropriated amounts. The remaining 8 accounts have variances from the FY2010 levels, six accounts are increased, one account is eliminated and one account is further adjusted (reduced) as part of the IT consolidation. The 8 accounts with variances are detailed below in the same order as listed on the enclosed two-page chart.

Below are the accounts with variances between the Governor's House 2 as compared to the current FY2010 post 9C amounts.

70100005 - DESE Administrative Accounts:An increase of $241.00.

70101022 - Certificate of Occupational Proficiency: A decrease of $20,995 representing the elimination of this program. This program was essentially eliminated this fiscal year with the FY2010 9C budget reductions of $188 thousand.

70280031 - Special Education in Institutional Settings: An increase of $572 thousand or 7.5% to fund special educational contracted services to students in DMR & DYS facilities.

70350001 - Adult Learning Centers: A transfer $128 thousand as part of further refinements to the FY2010 state-wide IT consolidation. These funds are transferred to the Executive Office of Education's IT Account.

70610008 - Chapter #70: A net increase of $10.5 million above the total state and federal ARRA funds distributed in FY2010.

70610012 - SPED Circuit Breaker Program: An increase of $1.9 million, representing a partial restoration of the $7.0 million FY2010 9C budget reduction.

70619200 - DESE IT/Data Collection: A transfer of $337 thousand as part of further refinements to the FY2010 state-wide IT consolidation. These funds are transferred from the Executive Office of Education's IT Account to the Department's Data Collection Account.

70619408 - Targeted Assistance: An increase of $26 thousand representing the restoration of the FY2010 9C budget reduction.

The Governor's Fiscal Year 2011 House 2 Budget, when filed with the House and Senate, starts the FY2011 budget process that culminates with a Fiscal Year 2011 Budget that is sent back to the Governor for his review and approval in late-June. I have included a two-page document that details the State's annual budget process.

We are available to help walk you through the House 2 recommendations. If you have any questions, please do not hesitate to contact me at #3100, Tony DeLorenzo at #6598 or Jeff Wulfson at #6500.

Attachments

C.	DESE Senior Staff DESE Managers