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School Finance: Chapter 70 Program

FY10 Chapter 70 Aid, Net School Spending Requirements, and Federal Stabilization Grants: Legislative Conference Committee Report

June 19, 2009

Last night the House and Senate budget conference committee released its recommendations for the FY10 state budget. The conference committee report is expected to be approved today by the full House and Senate and sent to the Governor for his review and approval. Governor Patrick is expected to sign the budget on Monday, June 29.

Although the budget will not be final until it is signed by the Governor, we recognize that municipalities and school districts are in the process of finalizing their own budgets for next year. To assist in this effort, we are providing this summary information about the conference committee's Chapter 70 recommendations.

The first table shows the foundation budget, required local contribution, and chapter 70 aid for each school district, based on the conference committee report. The second table shows, for regional school districts, the required local contribution for each of their member towns. These calculations assume the following:

  • Foundation budget inflation of 3.04%.

  • Adjustments to municipal revenue growth factors to reflect the reductions in unrestricted general local aid.

  • Continued phase-in of the aggregate wealth model first adopted in FY07.

  • Across-the-board cut of two percent in Chapter 70 aid for all operating districts (from FY09 levels).

As a result of the two percent across-the-board cut, 151 districts will have a net school spending requirement (Chapter 70 aid plus required local contribution) that is below the district's foundation budget target. This shortfall is shown in the last column of the first table. If the Governor approves the conference committee's Chapter 70 recommendations, then districts with a foundation budget shortfall can expect to receive FY10 federal stabilization funds in the exact amount of the shortfall. This will ensure that every district will have sufficient fiscal resources, from a combination of local, state, and federal dollars, to reach foundation.

After the budget is signed into law, we will post the complete workbooks with the detailed Chapter 70 calculations. We will also post the application forms for the FY10 federal stabilization funds at that time.

If you need any additional information, please contactJeff Wulfson(781-338-6500) orRoger Hatch(781-338-6527) in the Department's School Finance office.



Last Updated: June 19, 2009
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