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Funds Slashed for Special Ed Across Massachusetts
State education officials have notified school systems across Massachusetts that they will receive millions less in special-education money than many of them anticipated, bringing another piece of unwelcome news to districts already battered by a year of budget woes.
The state was scheduled to begin reimbursing districts this year for 75 percent of the costs of educating their most severely disabled students, including those in private day or residential programs. But in two memos received Monday and Oct. 14, state school finance officials and Education Commissioner David P. Driscoll told superintendents that they will receive just 27.6 percent, and will have to make up the rest.
This would have been the first year of the 75 percent reimbursement rate, which would have covered about 10,000 special needs children whose education costs exceed $29,000. State officials estimate the lower rate will save about $150 million.
While the number of eligible students is a small portion of Massachusetts' 150,000 special-needs students, the news set off waves of disbelief and anger, even among superintendents who had budgeted conservatively. It also comes seven weeks into a lean school year that, for many communities, features bigger classes and smaller staffs as districts slashed costs in light of the state's $3 billion budget gap.
For example, Newton public schools expect an immediate $350,000 hit -- and possibly one as big as $1.1 million if other expenses materialize, Superintendent Jeffrey M. Young said. The Natick School Committee this week deferred approving a new teacher contract because the new expenses raised questions about funding for raises. And the five-town Wachusett Regional School District in Jefferson will have to plug a $425,000 hole.
''Yet another thing,'' said Alfred D. Tutela, Wachusett Regional's superintendent of schools, who froze all but essential spending, hiring, and traveling after getting the news. ''It's easy to say in the budget business, `We're just going to cut, and it's sad to see we'll have to reduce people.' But the bottom line is, I don't want to reduce education.''
The 75 percent reimbursement is part of the state's so-called circuit breaker law passed three years ago to help districts pay for the growing expenses of special education. The goal was for the state to assume 75 percent of the expenses of students who need extensive care, ranging from one-on-one classroom aides to round-the-clock help.
But that goal could wind up costing the state as much as $270 million, state officials estimate. Facing other budget problems, the Legislature appropriated only $122 million, leading the Department of Education to shrink its reimbursement rate to cover the 10,000 students. And of that $122 million, the DOE already has spent $16 million to pay for last year's special education costs.
After the dust settled from the summertime state budget negotiations, state education officials realized they could not fund the 75 percent rate fully this year, said Jeff Wulfson, the DOE's associate commissioner for school finance. At the time, the DOE said, the department tried to make it clear to superintendents that they should not expect it.
Wulfson's office is now reviewing how many students qualify for the reimbursement rate. If the number drops, districts could see slightly higher reimbursements.
''This is an unfortunate growing pain,'' Wulfson said. ''We're trying to transition to a new program and doing it in the middle of a difficult fiscal year. . . . My bigger-picture perspective is I think it's a positive step that we're going to circuit breaker because I think that program was passed by the Legislature in recognition that special-ed costs have been skyrocketing, and the state did have an obligation to fund it at a higher level.''
Even with the lower than expected rate, Wulfson said, some districts should get more money this year than they did last year. That's because the old initiative paid 50 percent of the costs for only 1,300 students in residential care.
Wulfson acknowledged, however, that helping communities shoulder less of a burden in special education costs will take longer than many want. ''There won't be as much relief in the first year as people had hoped, but at least we now have a path that will get us there,'' he said.
In his memo, Driscoll told superintendents that ''every effort will be made to adequately fund it in the years to come,'' but did not say how that will happen.
Districts, meanwhile, are scrambling to cope with suddenly heftier bills.
Hudson Superintendent of Schools Sheldon H. Berman called the move to reduce the rate ''a broken promise.'' He said districts knew that they would not get 75 percent, but did not expect a rate as low as 27.6 percent.
''I'm hopeful the Legislature will come through and say, `Wait a second, this is untenable,' '' said Berman, whose district faces a $150,000 hit.
Natick School Committee chairman Henry Haugland said his district pushed back approval of a new teachers' contract, confronted with an additional $200,000 to make up after receiving less state special education money.
''It's really distressing to see the degree to which the Legislature and the governor really for years now have absolutely refused to do anything about helping school districts with some of these inordinately high special-ed costs,'' Haugland said.
In the end, districts that had remained skeptical of how much they would receive might end up faring the best. Boston for example, budgeted for significantly less than the $15.3 million it was owed under the 75 percent reimbursement.
''It doesn't create huge problems for us because of our low expectations,'' said John McDonough, chief financial officer for the Boston public schools. ''Unfortunately, those expectations have now been realized.''
— Anand Vaishnav
Funds slashed for special ed across Mass
Boston Globe
2003-10-22
http://www.boston.com/dailyglobe2/295/metro/Funds_slashed_for_special_ed_across_Mass_+.shtml
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