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Local Aid and Finance Education finance commission targets cost-cutting
Cost-cutting and reform measures are the centerpiece of recommendations released by a special commission on school finance that was charged with finding ways to pay for the next generation of education reform in Massachusetts.
While Readiness Finance Commission members talked about the need for new taxes to fund the governor’s sweeping education improvement goals, which were outlined last year in “Ready for 21st Century Success,” no tax proposals were included in the commission’s report.
In a statement accompanying the report, released on Dec. 31, the commission noted that the harsh impact of the recession on state finances has made it a priority over the next few years to preserve the educational advances already made, while “Readiness Project” initiatives would have to be more limited than planned.
“Massachusetts has been and must continue to be a leader in education reform in order to be competitive on an international stage,” said Commission Co-Chair Gloria Larson, president of Bentley University. “It is critically important for the health of the state’s economy that we boldly seek to achieve the most efficient and innovative educational system possible, and that sufficient support exists to prepare students for a dynamic and changing world.”
One key commission recommendation would remove health insurance “plan design” decisions from collective bargaining for entry into the state-administered Group Insurance Commission or any other plan with equivalent or better rates. This recommendation would not apply to employee-employer premium contribution rates, which would still be bargained.
The Readiness Finance Commission found that “significant savings can be achieved in the area of procuring health insurance” and that “it is essential to provide plan design authority to municipal managers if the state is going to tie any form of state education aid to a municipality’s implementation of cost-savings strategies in the realm of health insurance.”
The commission also proposed that all retired teachers be required to join the Medicare program prior to participating in any further municipal or school district health insurance program.
The commission report estimates total potential savings from these two health insurance recommendations at as much as $335 million annually.
The commission also recommended that the state improve how Medicaid reimbursements for special education costs are administered, to increase the amount received from the federal government and to give school committees greater control over the funds. Along with other plans to lower costs, changes to special education could potentially save more than $100 million, according to the report.
The commission also proposed greater regionalization of school services and procurement, and reducing energy costs.
The report includes a long-term look at funding strategies for Readiness Project goals, concluding that cost-cutting alone would not be sufficient to take public education to the next level of reform. While stressing the need to tie new revenues to cost-cutting and efficiency measures, many commission members are reported to have concluded that new taxes will be needed and that the sales tax might be the best option.
The 22-member Readiness Finance Commission, appointed by the governor last summer, is chaired by Larson and Suffolk Construction President and CEO John Fish. Salem Mayor Kim Driscoll serves as the municipal member on the commission.
• Link to the Readiness Finance Commission report and recommendations
• Ready for 21st Century Success report (876K PDF)
Local Aid and Finance Education finance commission targets cost-cutting
Education finance commission targets cost-cutting
Cost-cutting and reform measures are the centerpiece of recommendations released by a special commission on school finance that was charged with finding ways to pay for the next generation of education reform in Massachusetts.
While Readiness Finance Commission members talked about the need for new taxes to fund the governor’s sweeping education improvement goals, which were outlined last year in “Ready for 21st Century Success,” no tax proposals were included in the commission’s report.
In a statement accompanying the report, released on Dec. 31, the commission noted that the harsh impact of the recession on state finances has made it a priority over the next few years to preserve the educational advances already made, while “Readiness Project” initiatives would have to be more limited than planned.
“Massachusetts has been and must continue to be a leader in education reform in order to be competitive on an international stage,” said Commission Co-Chair Gloria Larson, president of Bentley University. “It is critically important for the health of the state’s economy that we boldly seek to achieve the most efficient and innovative educational system possible, and that sufficient support exists to prepare students for a dynamic and changing world.”
One key commission recommendation would remove health insurance “plan design” decisions from collective bargaining for entry into the state-administered Group Insurance Commission or any other plan with equivalent or better rates. This recommendation would not apply to employee-employer premium contribution rates, which would still be bargained.
The Readiness Finance Commission found that “significant savings can be achieved in the area of procuring health insurance” and that “it is essential to provide plan design authority to municipal managers if the state is going to tie any form of state education aid to a municipality’s implementation of cost-savings strategies in the realm of health insurance.”
The commission also proposed that all retired teachers be required to join the Medicare program prior to participating in any further municipal or school district health insurance program.
The commission report estimates total potential savings from these two health insurance recommendations at as much as $335 million annually.
The commission also recommended that the state improve how Medicaid reimbursements for special education costs are administered, to increase the amount received from the federal government and to give school committees greater control over the funds. Along with other plans to lower costs, changes to special education could potentially save more than $100 million, according to the report.
The commission also proposed greater regionalization of school services and procurement, and reducing energy costs.
The report includes a long-term look at funding strategies for Readiness Project goals, concluding that cost-cutting alone would not be sufficient to take public education to the next level of reform. While stressing the need to tie new revenues to cost-cutting and efficiency measures, many commission members are reported to have concluded that new taxes will be needed and that the sales tax might be the best option.
The 22-member Readiness Finance Commission, appointed by the governor last summer, is chaired by Larson and Suffolk Construction President and CEO John Fish. Salem Mayor Kim Driscoll serves as the municipal member on the commission.
• Link to the Readiness Finance Commission report and recommendations
• Ready for 21st Century Success report (876K PDF)
Written by MMA Legislative Director John Robertson
