School Finance: Chapter 70 Program
FY10 "One-Time Adjustment" Waivers
The FY10 state budget authorized the Massachusetts Department of Revenue (DOR) to implement a waiver to reduce certain communities' Chapter 70 required local contributions. Communities were only eligible if
Their final FY08 school expenditures turned out to be lower than the amounts used in the Chapter 70 formula when it was calculated during the winter and
They were subject to the "one-time adjustment" provision of the FY10 formula which raised contributions for below-target communities up to 95 percent of the amount that had been spent out of local resources in FY08.
Waivers have been granted by DOR to thirteen cities and towns. In total, required contributions fell by $5,977,898 from the original amounts. Because many of the communities are regional school members, the reductions affect 24 local and regional districts.
For fourteen districts the reductions drop the amount of net school spending and any SFSF grants calculated in June, to an amount that is below their foundation budgets. As a result, $4,525,914 in additional state fiscal stabilization fund (SFSF) grants are needed, bringing the FY10 total from that account to $172,175,259.
A listing of each the thirteen communities compares the initial contributions used in Chapter 70 to the final calculation. The waiver represents 95 percent of the difference, which is allocated among the various districts each municipality belongs to in proportion its total foundation budget.
A separate listing shows the 24 districts that are affected, and any additional SFSF grant money needed to spend at foundation.
These figures do not include any of the other three types of waivers which DOR makes available. Criteria and eligibility for all waivers are described in a July Informational Guideline on the DOR website.
Questions can be directed to Roger Hatch, Office of School Finance, firstname.lastname@example.org.