Rep: Lynn school spending solution near

LYNN – The city is on its way to resolving a multi-million-dollar spending conflict that triggered a state threat to withhold vital school money.State Rep. Robert Fennell announced Wednesday that a Massachusetts House vote sets the stage for the city, beginning next year, to greatly ease its net school spending problem by counting retired teacher health insurance costs as part of a complicated state spending formula.The legislative remedy, proposed by Fennell and adopted by the House, also provides the city with immediate relief by allowing any penalties associated with Lynn?s net spending shortfall – including a potential $300,000 penalty for this year – to be waived.?Past penalties would be waived, saving our city a large financial impact,” Fennell said.Under state education law, cities and towns must meet minimum local public school spending requirements set by the state in return for receiving state tax dollars.Fennell?s four-year, phase-in plan to resolve the shortfall is supported by state education officials and needs final legislative approval and local review.?The objective is to address a long-term inequity Lynn has faced. We?ve recommended for some time that this be addressed,” said Deputy Education Commissioner Jeff Wulfson.Local concerns over net spending escalated this winter with a letter from state Education Commissioner Mitchell Chester warning Lynn could lose some of its state public school Chapter 70 money if it did not resolve an $8.5 million spending imbalance.Local and state officials met to find a legislative solution to the problem even as Mayor Judith Flanagan Kennedy warned inaction could trigger city government layoffs. Kennedy also sharply criticized the state?s insistence that Lynn officials “opted out” of a provision in 1994 allowing the city to include retired teachers? health insurance in net spending calculations.State senators worked on solutions to the net spending problem, and Fennell said House Speaker Robert DeLeo?s involvement helped craft a solution for the city.?Without his input this would not have been accomplished,” Fennell said, adding, “I can?t thank him enough for listening to our concerns and his willingness to find a solution to this situation.”Wulfson said “a handful” of other cities and towns face spending shortfall problems related to retiree health insurance calculations, including Methuen and Palmer. He said most communities commit local tax dollars to school spending “significantly above” state spending requirements – but not Lynn.?In recent years, the council appropriated at or below what the actual requirement is,” Wulfson said.