School Finance and District Support

FY19 Updated and FY20 DESE Education Aid Program Projections

To:	Secretary Michael Heffernan, Executive Office for Administration & Finance Secretary James Peyser, Executive Office of Education Chair Michael Rodrigues, Senate Committee on Ways and Means Chair Aaron Michlewitz, House Committee on Ways and Means Chair Jason tewis, Joint Committee on Education Chair Alice H. Peisch, Joint Committee on Education
From:	Bill Bell, Senior Associate Commissioner for Administration & Finance
Date:	March 15, 2019

The Department of Elementary and Secondary Education (DESE), has updated its current FY19 education aid reimbursements and forecasted amounts for FY20. These figures are derived from the FY18 District End of Year Financial Report, and projections based on the State Board of Elementary & Secondary Education's charter authorizations and the Governor's FY20 House 1 charter reimbursement proposal for the 2019-2020 school year. DESE hopes this information will assist with the development and finalization of the FY20 General Appropriations Act (GAA).

Regional school transportation (7035-0006)

FY19 estimated claims

$89,198,679

FY19 appropriation

$68,878,679

FY19 estimated reimbursement percentage

77.2%

FY20 projected claims

$92,320,633

FY20 projection assumes a 3.5% increase in claims.

Non-resident vocational transportation (7035-0007)

FY19 estimated claims

$4,115,126

FY19 appropriation

$250,000

FY19 estimated reimbursement percentage

FY20 projected claims

$4,259,156

FY20 projection assumes a 3.5% increase in claims.

Homeless transportation (7035-0008)

FY19 estimated claims

$26,361,702

FY19 appropriation

$9,099,500

FY19 estimated percentage

34.5%

FY20 projected claims

$27,284,362

FY20 projection assumes a 3.5% increase in claims.

Special education circuit breaker (7061-0012)

FY19 estimated net claims

$403,703,403

FY19 estimated net claims entitlement (75%)

$307,897,733

FY19 available funds

$305,278,033

FY19 estimated payments

$305,278,033

FY19 estimated reimbursement percentage

74.2%

FY20 projected net claims

$427,755,339

FY20 projected net claims entitlement (75%)

$326,533,329

Estimates and projections include students reimbursable at 100% rate.
FY20 projection excludes extraordinary relief and other earmarks.
FY20 projection assumes a 5.65% increase in net claims and an 11.6% growth in students reimbursable at 100%.

Charter tuition reimbursement (7061-9010)

FY19 estimated charter tuition

$643,615,642

FY19 estimated reimbursement entitlement

$162,211,730

FY19 appropriation

$90,000,000

FY19 estimated percentage

56%

FY20 projected charter tuition

$717,599,825

FY20 projected reimbursement entitlement

$137,667,919

FY20 projection includes proposals/or new and expanded schools approved by the Board of Elementary and Secondary Education as well as a new method for reimbursing school districts for charter school tuition costs. This approach changes the current 6 year reimbursement schedule (100%/25%/25%/25%/25%/25%) to a 3 year schedule (100%/60%/40%) and adds supplemental funding for districts with higher charter tuition costs (greater than 9% of net school spending) and relatively low Chapter 70 aid.

If you need any additional information regarding these projections, please contact Associate Commissioner Jay Sullivan, Director of School Finance Rob O'Donnell, or me.

Thank you for your ongoing support and assistance to the Department's mission.

cc: Commissioner Jeffrey C. Riley
Deputy Commissioner Jeff Wulfson

Last Updated: March 15, 2019