Massachusetts' public schools are ranked the best in the nation,
but how do you keep that competitive edge? And how do you pull up
the achievement scores in all schools? To attain those goals, it's
increasingly important that schools be able to take advantage of
information technology. In times of tight budgets, it's also
critical that they be able to do this cost-effectively. The
Massachusetts School Building Authority (MSBA), a quasi-independent
government authority that is overseen by a seven-member board of
directors chaired by State Treasurer Deborah Goldberg, is
partnering with the Massachusetts Department of Elementary and
Secondary Education (DESE) and the Massachusetts Office of
Information Technology (MassIT) to fund information technology
upgrade projects in public schools across the commonwealth to help
meet the challenge. The MSBA program will support the Digital
Connections Partnership Schools (DCPS), an existing information
technology grant program that is currently managed by DESE and
MassIT. The combined program will allow qualifying schools to
implement 21st century digital learning programs through the use of
enhanced technology and increased broadband access, and to do it
with grants from the DCPS and/or zero percent interest loans from
the MSBA that leverage Federal Communications Commission (FCC)
e-rate rebates. The result of these three branches of state
government working collaboratively produced an outstanding
opportunity for school districts.
First, some of the history of that collaboration:
"Digital learning" is the thoughtful and deliberate use of
informational technology to support teaching and learning. It
allows teachers to (1) tailor the learning environment to afford
students more control over the place, time, content, and method of
instruction, (2) offer differentiated learning paths for students
based upon demonstrated competency in a subject or skill, (3)
provide students access to a greater range of learning
opportunities and course options, (4) promote greater student
engagement and collaboration with peers, (5) network and share
knowledge, and (6) intervene more quickly with struggling students.
Its use will be central to the education of our students, going
forward, and every school needs to become digitally ready as
quickly as possible.
To support this need, in 2014 the Legislature appropriated
$38,000,000 to the Executive Office for Administration and Finance
as part of an information technology financing initiative. The
funding was set aside for potential grants "to assist public school
districts in improving student instruction and assessment through
the use of information technology [including] enhanced information
technology infrastructure and increased broadband access … " and to
achieve that objective, the legislature directed DESE and MassIT to
establish an IT grant program that would "maximize access of
broadband to public school districts." In response, DESE and MassIT
established the DCPS to manage that funding. (Ch. 257 of the Acts
of 2014, Section 2B, line item 1599-7062).
The overriding objective of the DCPS is to increase Broadband
Connectivity to and within K-12 public schools through the
following process:
- The IT grant program supports public school IT improvement
projects through grants, local matching contributions and discounts
for IT infrastructure costs that are available to communities under
the FCC's Universal Service E-Rate Program.
- Grant funds are allocated proportionately to urban, suburban
and rural grant pools.
- Applicants are assigned to an appropriate grant pool.
- Applications are compared and ranked based upon the quality of
each applicant's vision and plan for successfully implementing a
digital learning program.
- Applicants provide a local matching contribution that is
proportional to their MGL CH. 70 program contribution. Those
contributions range from 30 to 70 percent of the estimated cost of
a project.
- FCC E-Rate discount rebates are used to offset a portion of the
cost of the IT infrastructure costs. Rebates are available to pay
for 20 to 90 percent of a community's total IT infrastructure cost
depending upon economic need and rural status.
- MassIT manages all contract payments to IT infrastructure
providers and then applies for, collects and returns available
e-rate rebates to applicants.
In 2015, the DCPS began approving projects for the IT grant
program. Initially, 247 schools from 98 districts applied for IT
grants and, of those applicants, 47 schools in 17 districts were
designated as finalists and 200 schools in 81 districts were
designated as semi-finalists or candidates. Finalists received
grants; their projects were approved, and $7,837,153 in technology
upgrades were completed using $4,240,000 from grants and $3,597,153
from local matching funds. The average project value was $461,009.
Semi-finalists and candidates did not receive grants and even
though $7 million of IT grant funding had been released by the
Executive Office for Administration and Finance, it became clear as
of July 2016 that more IT grant funding was needed as soon as
possible so that all schools could quickly become digital
learning-ready. It was then that the MSBA, DESE and MassIT joined
forces to dramatically increase support for the existing
program.
MSBA Background
The MSBA is a quasi-independent government authority created by
the legislature in 2004 to reform the process of funding capital
improvement projects in the commonwealth's public schools. Its
charge is to effectively manage "the commonwealth's investments in
school building assets [by] promoting positive educational
outcomes, ensuring the health, safety, security and wellbeing of
students, easing and preventing overcrowding, maintaining good
repair, efficient and economical construction and maintenance,
financial sustainability of the school building assistance program,
thoughtful community development, smart growth and accessibility."
(MGL c. 70B, Sec. 1). To accomplish this goal, the MSBA is given a
statutorily dedicated revenue stream of one penny of the state's
6.25 percent sales tax which the MSBA leverages to borrow funds
which are used to provide "grants and loans to cities and towns
for the planning and construction of school building and school
facility projects." (MGL c. 70B, Sec. 3, emphasis supplied).
Indeed, the MSBA works hand in hand with local communities to plan
for and fund a large portion of the cost of the design and
construction of affordable, sustainable and energy efficient
schools across Massachusetts. Given that mission and the MSBA's
expertise and resources, the MSBA was happy to join with the DCPS
to effectively support the program.
Since the DCPS was seeking alternative funding sources, the
MSBA, DESE and MassIT worked to create a funding structure which
could support the IT grant program without causing any concomitant
damage to the overall MSBA School Building Assistance Program. The
solution had to be practical (the average amount needed to fund the
cost of a school's IT infrastructure could not support the cost of
hiring bond counsel to manage and opine on the legality of a bond),
legal (allowed under the MSBA enabling statute) and immediate (the
program needed to move forward as quickly as possible). The
solution was the MSBA IT Loan Program, which is structured as
follows:
- The MSBA will provide zero percent interest loans to applicants
to pay for IT infrastructure on the basis of need as determined by
DESE.
- The loans will be limited to DESE approved projects that have a
total estimated IT-infrastructure cost of at least $10,000 but no
greater than $2.5 million.
- $10 million will be made available for loans each year for a
period of five Years, from FY 2017-2022. The total amount available
will be $50 million.
- Loans will be made using funds that are available for general
use because they are not classified as "restricted" under the
requirements established by the General Accounting Standards
Board.
- MassIT will determine the total cost of procuring and
installing IT infrastructure for each approved project.
- Borrower applicants will provide the MSBA with all required
appropriation documentation and will sign a loan agreement with the
MSBA. Each agreement will conditionally assign all loan proceeds to
MassIT and will include a provision that allows the MSBA to
intercept the borrower applicant's state aid if a loan payment is
not made.
- The form of note used by a district will be submitted under the
State House note service for certification by the director of the
Bureau of Accounts of the Division of Local Services in the
Massachusetts Department of Revenue. The certification service is
attractive because it does not require an official statement or
full disclosure. However, the director will withhold certification
if the laws relating to municipal indebtedness have not been
complied with or if it appears that the proceeds of the note are
not to be used for the purpose specified in the vote authorizing
the loan.
- MassIT will use the loan proceeds to make direct payments to IT
infrastructure providers.
- When the work is completed, MassIT will apply for and collect
available e-rate reimbursements from the FCC and return those
rebates to the borrower applicants.
- Borrower applicants will pay all amounts due the MSBA within
the terms of the loan agreement.
The DCPS will soon begin approving IT infrastructure projects
and the MSBA will concomitantly begin loaning funds to approved
participants. Everyone involved with the MSBA and the DCPS program
is excited by the combined potential of the DCPS IT Grant Program
and the MSBA IT Loan Program's potential. State Treasurer and MSBA
Chairperson Deborah Goldberg remarked that the MSBA is "excited to
collaborate with DESE and MassIT through this loan program; by
making these loans available to school districts across the state,
the MSBA is providing assistance for much needed IT infrastructure
improvements for the thoughtful use of technology to support
teaching and learning." Similarly, Governor Charlie Baker stated
that "we are thrilled to begin this important and unique
partnership with the Massachusetts School Building Authority to
improve connectivity across public school districts in the
commonwealth." In addition, DESE Commissioner Mitchell Chester
stated that "in order to provide a world-class education, our
students and educators need access to 21st century technology [and]
I'm thrilled that our agencies have partnered to upgrade school
technology infrastructure for the benefit of our students." Karthik
Viswanathan, the head of MassIT's Office of Municipal & School
Technology, indicated that "MassIT is … happy to help schools
leverage the strength of the commonwealth at the local level by
providing IT expertise and economies of scale." The result of this
collaboration will enable our teachers and our students to reap the
myriad benefits of a digitally driven 21st century education.