FY20 Budget Development Update – SWM Recommendations BESE Meeting – May 21, 2019

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

I. Overview of Chapter 70 and Charter Reimbursements FY20 SWM Budget Overview I. Overview of Chapter 70 and Charter Reimbursements

Overview of Chapter 70 and Charter Reimbursements SWM FY20 Chapter 70 is $5.176 billion, a $268.4 million increase (5.5%) over FY19 SWM budget implements foundation budget rate changes, above inflation, in the areas identified by the FBRC SWM budget proposes a charter tuition reimbursement framework more closely resembling the statutory framework, an increase of $10 million over FY19 to $100 million $ 6 million less than House 1 $13 million less than HWM Rob O’D

SWM proposed rate changes above inflation in the four areas identified in the FBRC report Benefits and fixed charges: Closes 1/7th of the gap toward the H.70 goal rates, the same as House 1 and compared to 1/6th proposed in HWM Economically disadvantaged deciles: Establishes new goal rates for deciles 6-10, and closes 1/7th of the gap toward these rates Decile 6 goal equals 77% of the statewide average foundation budget per pupil Decile 10 goal equals 100% English learners (ELs): Establishes a goal rate of $2,537 for all grade spans and closes 1/7th of the gap toward this goal Does NOT consider ACCESS performance when identifying ELs, same as HWM Does NOT differentiate EL rates by grade span In-district special education: Closes 1/7th of the gap between 3.75% and 4% for non-vocational students and 1/7th of the gap between 4.75% and 5% for vocational students Out-of-district special education: Closes 1/7th of the gap toward the goal rate proposed in H.70, compared to 1/7th in House 1 Rob H

Aid impact of SWM rate changes compared to HWM and House 1 Full funding of foundation and base aid requirements, reflecting current rate of inflation $30.0M $37.2M $30.6M Further increase in foundation budget formula for health care, including benefits for retirees -$1.4M $15.1M $13.6M Additional increase in the factor for educating English language learners $80.7M $12.2M $12.8M Increased support to districts serving highest concentration of economically disadvantaged students $13.5 $11.7M $7.9M Minimum aid: House 1 $20/pupil, HWM and SWM $30/pupil PLUS hold harmless $4.6M $5.3M $4.3M Increase in funding to help districts meet rising out-of-district special education costs $4.7M N/A Increase in funding to help districts meet rising in-district special education costs $1.2M Introduction of a new enrollment category for students in Early College and Career Pathways $268.4M $218.7M $200.3M Total aid increase over FY19

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. Rob O’D

Charter school reimbursements restructured Return to a 3-year, 100%/60%/40% schedule for transitional aid Transitional aid tied to year-over-year tuition growth NOT long-term enrollment growth No supplemental aid for districts with high charter tuition costs and relatively low Chapter 70 aid $10 million increase over FY19 Facilities tuition rate is increased to $938 per pupil in FY20 and indexed to inflation in subsequent years Facilities tuition continues to be reimbursed at 100% Rob O’D

II. LEA Reimbursement Programs FY20 SWM Budget Overview II. LEA Reimbursement Programs

Special Education Circuit Breaker LEA Reimbursements Special Education Circuit Breaker Special Education Circuit Breaker reimbursement is increased by $25.7M over FY19 level. Increase of $4M to support the Department of Developmental Services voluntary residential placement prevention programs. $21.2M in claims reimbursement funding beyond House 1. 75% estimated claims reimbursement rate.

Transportation Reimbursements LEA Reimbursements Transportation Reimbursements Regional School Transportation increased by $5M over FY19. Estimated reimbursement at 78%-79%. Both Homeless Transportation and Non-Resident Vocational School Transportation are level funded in SWM bill.

III. School Improvement Resources FY20 SWM Budget Overview III. School Improvement Resources

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

IV. DESE Administered Program Highlights FY20 SWM Budget Overview IV. DESE Administered Program Highlights

DESE Administered Program Highlights Teacher Certification Retained Revenue account increased by $430,000. Increase designed to support Professional Practices Investigations, Educator Licensure and Educator Preparation. Adult Basic Education increased by $4.95 million over FY19.

FY20 SWM Budget Overview Questions ?