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Home Additional Resources Gov. announces plan for use of education funds

Gov. announces plan for use of education funds

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March 27, 2009

Of the billions of dollars allocated to Massachusetts in the federal stimulus package over the next two fiscal years, an estimated $1.88 billion or more will be for education programs, including early education, K-12 education, and higher education.

While most of these funds may be used at the discretion of the governor, significant amounts are for direct allocation to school districts and will be available, at least in part, to help balance municipal and school budgets next year and in fiscal 2011.

Massachusetts is slated to receive $994.3 million in State Fiscal Stabilization aid, the largest education program in the federal package. The law requires that 82 percent of this amount be used to restore school aid to the higher of fiscal 2008 or fiscal 2009 levels, to fund K-12 school aid formula increases in fiscal 2010 and 2011, and to restore state support to public higher education accounts.

Funds also may be used to fund early childhood education programs. Any remaining funds from this portion of stabilization aid must be allocated to school districts based on the Title I formula. The balance is available for use at the discretion of the governor.

Gov. Deval Patrick has proposed to use $168 million from state stabilization payments to supplement Chapter 70 school aid in fiscal 2010 to ensure that all districts reach the “foundation” level of spending. The allocation of this amount for individual districts is based on the governor’s Chapter 70 proposals in his fiscal 2010 state budget recommendation, including his changes to the Chapter 70 formula.

The governor has also proposed allocating $162 million in federal education recovery funds to state colleges and universities to restore campus budgets and mitigate student fee hikes.

The governor has also announced the first of the two main direct allocations of new federal stimulus funds to local school districts. Schools are slated to receive $280 million over the next two years through IDEA, the federal special education program. School districts are also in line to receive $163 million in funding through the federal Title 1 program.

Full descriptions of the range of federal stimulus package education programs, including amounts for individual districts and rules governing the use of funds, are available at the Department of Elementary and Secondary Education Web site (www.doe.mass.edu).

Link to press release about governor’s pledge of $168 million in federal funds for local schools

Download list of districts in line to receive additional education funding under governor’s plan (60K PDF)