Home Local Aid and Finance Gov. to rescind $18M school transportation cut

Gov. to rescind $18M school transportation cut

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December 30, 2009

The Boston Globe reported today that Gov. Deval Patrick plans to rescind a $18 million cut made earlier in the year to reimbursements to regional school districts for a portion of student transportation costs.

Administration and Finance Secretary Jay Gonzalez told the Globe that he hopes to announce a plan next week.

The cut to reimbursements was made by the governor in October, using his authority to unilaterally reduce spending, following a reduction in the state tax forecast for fiscal 2010 and a projected $600 million shortfall for the year.

The cut to transportation aid had caused regional school districts to plan for layoffs and service cuts to balance their budgets.

Gonzalez said that favorable tax collection amounts through December might provide enough revenue to pay for the restored transportation aid, or cuts in other state budget accounts would be needed to pay for it.

“The governor has asked me to figure out a way to restore that cut,” Gonzalez told The Globe. “I’m looking at what options we have.”

Tax revenue collections have improved since September, and the state has won several one-time tax settlement cases, alleviating some of the need for further cuts.

“There were lots of cuts the governor didn’t want to have to make, and if there were an opportunity to reverse some, that’s something we’d look at,” Gonzalez said in the Globe interview. “But at this point this is the only cut that, regardless of the budget situation, we’re going to work to find a solution to.”