Is state funding guaranteed this time?  Is it a political promise?  Do we have something in writing? We have a commitment in writing from the MSBA, click here.  There have been many changes to the state’s aid program.  This time, the Massachusetts School Building Authority (MSBA) has a dedicated funding source from the sales tax.  Today the program operates on “pay as you build” basis, where formerly towns had to borrow construction funds and wait years for reimbursement.  Other schools further along in the process are receiving their checks as expected.  If the project is approved, Wayland and the MSBA will execute a contract, the Project Funding Agreement, and payments will begin immediately.  However, this grant is not transferable to an alternate project and will expire if the project is not approved by the end of January.

Will the Governor’s funding cuts affect Wayland’s $25 million grant?  The MSBA says these funding cuts will not affect their program, and they have already anticipated lower sales tax revenues in their planning.  Click here to read the MSBA’s Response to Budget Inquiries.  MSBA officials have assured the HSBC that future cuts would not affect project commitments already made, only the potential for future project commitments.  Emily Mahlman, Director of Communications at the MSBA, sent an email to Town Administrator Fred Turkington in which she said, “The Wayland project will not be impacted.”  For more on her email, read this Letter to the Crier, 11-09-09.

Why is Wayland getting a smaller reimbursement than other towns?  The state’s rate calculation includes an “ability to pay” factor, so less affluent towns get a higher rate than more affluent towns.   At 40% of eligible costs, Wayland’s grant is the maximum for a town with our demographics.  For future projects, the state has reduced its base rate to 31%.  Click here for information about the MSBA’s rate calculation.

Why isn’t the whole project eligible for state aid?  Some costs are not covered at all by the state’s grant program, such as waste water treatment plants, permitting, and moving and storage.  Other costs are capped, such as hazardous waste removal and site preparation.  Wayland’s total project budget of $70.8 million includes $8.3 million of ineligible and excluded costs, so our grant was based on 40% of $62.5 million, or $25 million.  For more about the project budget, click here.  For details about the MSBA’s regulations, click here.

Could we get state aid for a different project?  The current grant of $25 million is not transferable to a different project.  According to the state regulations, the grant process would need to be repeated.  No town has yet failed to approve a Project Scope and Budget Agreement, so it is unclear how much flexibility the MSBA would allow in completing tasks.  Click here to read the MSBA’s policy statement about a failed vote. They say it “likely will result in the school district being required to submit a new Statement of Interest to the MSBA and await a second invitation from the MSBA to enter the feasibility study phase of the MSBA’s process.”  In addition, the state has reduced its base reimbursement rate from 40% to 31% for future projects, so any grant would be at a lower rate.  Finally, the MSBA agreed with Wayland that the proposed solution is the preferred solution for the educational need.  It is uncertain whether they would participate in an alternate project that did not meet their guidelines. 

If the state backs out and doesn’t sign the Project Funding Agreement, can we cancel the whole process?  This has not happened with other communities so it is difficult to speculate.  However it is not the intention of the HSBC or the School Committee to proceed without state aid.

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