FY'26 Budget Document (December 10, 2024)

Wellesley Public Schools: Fiscal Year 2026 Budget

CIRCUIT BREAKER REVOLVING FUND (Fund 0029) Director/Program Coordinator:

Assistant Superintendent for Finance and Operations

Program Description:

Circuit Breaker (MGL Ch. 44:53A), the state special education reimbursement program, provides funding to districts for high-cost special education students. The Student Opportunity Act (SOA), Chapter 132 of the Acts of 2019, altered the reimbursement formula. A summary of the reimbursement changes is: 1. The “Approved Cost Threshold” is $52,419 in FY’25 and will increase annually using the foundation inflation index. 2. Reimbursement for out-of-district (OOD) transportation will be phased in over four years and is subject to appropriation. 3. Reimbursement for instructional costs and transportation is capped at 75%. Instructional costs will be prioritized for reimbursement with the balance used for OOD transportation reimbursement. State reimbursement rates, for instructional costs, have averaged 75% in recent years (see chart for specific years).

Fee Structure:

No fees associated with this program

Fund Restrictions:

Funds are primarily used to offset tuition costs but may also be used to compensate employees or pay for contracted services, equipment, and materials to serve the needs of students on an Individual Education Program (IEP). The Massachusetts Department of Elementary and Secondary Education (DESE) and the Massachusetts Department of Revenue (DOR) recommend districts carry forward revenue for one year i.e., FY’25 can be carried forward and spent in FY’26. E. Fund Balance Outside Guidelines School Committee determines carry forward amount annually.

Fund Balance Evaluation Rating:

Circuit Breaker

FY’22 Actual FY’23 Actual FY’24 Actual

FY’25 Proj.

FY’26 Proj.

Beg. Balance

$0

$0

$0

$0

$0

Revenue

State Payments

$3,365,781 $3,384,134

$2,923,316 $3,181,712

$3,181,712

Expenditure

Budget Offset Direct Expenses Ending Balance

$3,365,781 $3,384,134

$2,923,316 $3,181,712

$3,181,712

$0 $0

$0 $0

$0 $0

$0 $0

$0 $0

Reimbursement Rates

FY’22 Act.

FY’23 Act.

FY’24 Act.

FY’25 Proj.

FY’26 Proj. 75.00% 75.00% $52,419 2

Instruction

75.00% 75.00% 75.00% 75.00%

75.00% 75.00% 56.84% 44.00%

Transportation

Approved Threshold Amount

$47,363

$49,494

$51,721

$52,419

2 FY’26 Approved cost threshold amount is an estimate.

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