School Finance: Chapter 70 Program
FY18 Chapter 70 Aid and Net School Spending Requirements
July 17, 2017
On July 17, 2017, Governor Baker signed the FY18 state budget which authorizes $4,746,953,714 in Chapter 70 education aid to Massachusetts school districts. This budget increases aid by $118 million or 2.5 percent. Every operating district receives at least $30 in additional aid per student, and 97 operating districts receive increases so that they can keep pace with increases in their foundation budgets. 15 districts receive transitional relief to assist them changes made in low income enrollment.
Here are some of the key points about the proposal:
- The aggregate wealth model used in the formula since FY07 continues to be in effect. For municipalities with required contributions above their targets, the equity component of the formula is reduced by 85% of the gap.
- 97 operating districts receive foundation aid to ensure that they do not fall below their foundation budgets.
- Foundation budgets are increased by an inflation factor of 1.11 percent.
- Enrollment increased by 0.13 percent; forty-four percent of districts saw increases of as much as 31 percent.
- Economically disadvantaged enrollment continues to be used in lieu of free and reduced price lunch data, which is no longer available for all districts as a result of districts' participation in the USDA's Community Eligibility Program.
- In response to the Foundation Budget Review Commission's report, the "benefits and fixed charges" rate was raised by 15% of total recommended increase.
The Department of Elementary and Secondary Education has prepared the following materials to assist local officials in understanding the state aid calculations and local contribution requirements in this year's Chapter 70 program:
Summary chart, showing foundation enrollment, foundation budget, Chapter 70 aid, and required local contributions for each school district.
Summary chart for regional school districts, showing foundation enrollment and required local contribution for each member of the district.
Powerpoint presentation, describing the major components of the formula.
White paper, describing the major components of the formula in greater detail.
Complete formula spreadsheet, showing the detailed calculations for each municipality and district.
Questions about the Chapter 70 program should be directed to: