The Special Education Circuit Breaker account was put into effect in 2004 so that the Commonwealth would help defray the expense to local school districts for providing legally mandated special education supports and services to children with severe disabilities.
Special education is paid for from four major sources — the general funds of the town, federal special education grants (IDEA grants), Chapter 70 funds, and the state circuit-breaker grant. The state’s Special Education Circuit Breaker program reimburses local school districts for a portion of their costs above a certain threshold for educating severely high-needs special education students. The threshold for eligibility is tied to four times the state average foundation budget per pupil as calculated under the Chapter 70 education funding law. The state is required to pay up to 75 percent of the costs above that threshold.
Lincoln D. Lynch III, Ed. D., Superintendent of Walpole schools states:
“Dear Colleagues:
We greatly appreciate your advocacy to support passage of the amendment to increase Circuit Breaker funding. The Massachusetts House of Representatives passed supplemental funding. DESE confirmed the existing language in the H.4366, when added to in unused Extraordinary Relief balance, will be sufficient to raise the FY’18 CB Reimbursement percentage to 72%. The recent attention to the importance of CB to all school districts by MASS, MASC and MMA, will bode well for favorable action for CB funding within FY’19 state budget.
For those interested in the details, data for the following calculations have been provided by Jay Sullivan, DESE Associate Commissioner, School Finance and District Support Center. You will notice the Special Indicator (1.B.) reimbursement (for homeless, state wards and abandoned child) is static at 100% reimbursement and therefore not subject to the calculation to determine the funding amount necessary to generate the 72% reimbursement percentage for school districts.
Lincoln Lynch, our M.A.S.S. Finance Adviser (left) is shown with former Interim Commissioner Jeff Wulfson and former Deputy Commissioner Jeff Nellhous before he left for a private sector position.
1. Circuit Breaker calculation to reach 75%:
A. Net Claims Reimbursed in FY18 $ 383,163,649 (all eligible expenses submitted for reimb)
B. Less: Special Indicator -17,921,277 (100% reimb for homeless, state wards, abandoned children)
C. Net (amount applicable to 75%) 365,242,372 (C=A-B)
D. Amount needed for 75% 273,931,779 (C x .75 = amount districts to receive 75%)
E. Plus: Special Indicator (SI) +17,921,277 (not reimb at 75%, because reimb @ 100%)
F. Earmarks (EM) +14,521,474
G. Total budget needed $ 306,374,530 (for districts to receive 75% +E+F)
2. Circuit Breaker calculation to reach 72%:
A. Net Claims Reimbursed in FY18 $ 383,163,649 (all eligible expenses submitted for reimb)
B. Less: Special Indicator -17,921,277 (100% reimb for homeless, state wards, abandoned children)
C. Net (amount applicable to 72%) 365,242,372 (C=A-B)
D. Amount needed for 72% 262,974.508 (C x .72 = amount districts to receive 72%)
E. Plus: Special Indicator (SI) +17,921,277 (not reimb at 72%, because reimb @ 100%)
F. Earmarks (EM) +14,521,474
G.Total budget needed $ 295,417.259 (for districts to receive 72%+E+F)
There is sufficient funding (3.I.) to reach the 72% reimbursement level for school districts (2.G.). The ultimate goal to reach the 75% as prescribed in the law, amounts to an additional $ 7,643,349 or (1.G. – 2.G.)
