Gendron letter details funding scenarios

Education Commissioner Susan Gendron told school superintendents Tuesday some of their state aid for next school year could be in jeopardy because of controversy over proposals in the two-year state budget, including an unpopular $1-a-pack hike in the cigarette tax.

“The deliberations surrounding the fiscal year 2008-fiscal year 2009 biennium budget are being impacted by several factors that have caused me to be very cautious in releasing proposed General Purpose Aid projections,” Gendron wrote.

As a result, school districts are receiving two sets of aid projections. One ramps up state aid as promised by $80 million for school year 2007-2008 in anticipation of hitting 55 percent of costs by school year 2008-2009. The other increases aid by around $60 million.

In her letter Gendron listed the issues causing her concern.

“The governor’s budget submission included a dollar increase on the cigarette tax to enable the state to meet it’s obligation in funding the implementation of the state share of 55 percent for the cost of education as defined by Essential Program and Services. The Taxation Committee has voted in opposition to the recommendation,” she said, putting an estimated $131 million of revenue at risk.

“The revenue forecast for fiscal year 2007 and fiscal 2008 was lowered yesterday by the Revenue Forecast Committee. This will create a need to adjust the budget for this year as well as next year,” Gendron continued.

And, she reminded superintendents that the governor also included $36 million in savings connected to his school consolidation plan that would have reduced the number of districts from 290 to 26.

“This continues to be discussed by the Education and Appropriation Committees,” Gendron said, with no plan yet approved. “As a result, we have prepared two very tentative subsidy calculations for your consideration in building your budgets,” Gendron said.

School districts have been waiting on the state aid projections to build their school budgets for the next school year, with Town Meetings already being held across the state. Some, like Sen. Peter Mills, R-Somerset County, have argued that the school aid be held back until the school consolidation plan is decided because once the money is released the state loses its leverage to make change.

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