Chapter 208 of the Acts of 2004 transferred the State School Building Assistance Program from the Department of Elementary and Secondary Education to a newly created Massachusetts School Building Authority (MSBA). A new state funding mechanism has been established that has significantly changed the disbursement of state school construction funds.
Prior to FY06, the Department of Elementary and Secondary Education would determine the payment schedule and therefore would populate the End of Year Financial Report (EOY) with the amount of state school construction aid distributed to cities, towns and regional school districts in each fiscal year. Cities, towns and regional school districts would then report their annual expenditures for school construction/renovation projects on each year's EOY Report.
Since the Department of Elementary and Secondary Education no longer calculates and disburses these funds, all districts will be required to report both the revenue and expenditures for school construction projects on the annual EOY report.
Report all state revenues received/earned from the MSBA under the following categories in B. Revenue from State Aid — Mass School Building Authority — Construction Aid — Line 130
Expenditures supported through the state's school construction grant program are capital in nature. These expenditures can be funded from various sources.
The city, town or regional school district bonded the total cost of an approved project over a 20-year period. Report annual expenditures for principal and interest in the 8000 series.
The city, town or regional school district bonds a portion of the total project cost over a 20-year period. The balance of the project cost was supported through annual city, town or regional school district appropriations. Report annual principal and interest payments on the loan in the 8000 series. Report expenditures made from city, town or regional school district appropriations to pay any part of the project cost in the appropriate category of the 7000 series.
The city, town or regional school district issued BANS over the last four fiscal years to support the total cost of an approved school construction project. The city, town or regional school district received a lump sum payment from MSBA and used these funds to pay down the BANS. Report the expenditure to pay down the BAN in the 7000 series.
The city, town or regional school district expends funds from local appropriation for a school construction project. State construction aid received from MSBA was used to support the balance of the expenditure. Report the total (from state and local sources) expenditure in the appropriate category of the 7000 series.
Last Updated: September 7, 2021
Massachusetts Department of Elementary and Secondary Education
75 Pleasant Street, Malden, MA 02148-4906
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