School Finance: Chapter 70 Program
FY12 Chapter 70 Aid and Net School Spending Requirements
July 11, 2011
On July 11 Governor Patrick signed the FY12 state budget which authorizes $3,990,504,093 million in Chapter 70 education aid to Massachusetts school districts. The calculations are identical to the preliminary Chapter 70 amounts published in January except for minor enrollment changes in a handful of districts. The formula replaces all of the $20.7 million in FY11 federal "sfsf" grants with Chapter 70 aid, and funds an additional $119.0 million in foundation aid. However, the $200.5 million in education jobs grants which were run through the formula in FY11 were one-time stimulus monies and are not folded into the FY12 base. This means that statewide, total aid falls from $4.072 billion to $3.991 billion, a reduction of $81.5 million or two percent.
Here are some of the key points about the FY12 calculations.
- The aggregate wealth model used in the formula since FY07 continues to be in effect. For municipalities with required contributions above their targets, the requirement is reduced by 20% of the gap (compared to 30% last year).
- Ninety-nine districts receive foundation aid to ensure that they do not fall below their foundation budgets.
- Almost three-quarters of the Commonwealth's 326 operating school districts see a net decrease in aid of between 5 and 7.5 percent. For many of them, the loss of education jobs grant funding is mitigated by the fact that the $200 million was eligible to be spread across more than one year. Districts applied for less than half of the $200 million for use in FY11 and are likely planning on using the remainder in FY12 and beyond.
- Foundation budgets are raised by an inflation factor of 1.78 percent.
- Enrollment fell by just 0.11 percent and cities in particular saw substantial increases.
- Newly-calculated equalized property valuations (EQV's) fell five percent from the previous period.
- Residents' incomes fell were six percent lower than the previous period.
- There are two new regional districts and one that expanded from grades 5 to 12, to PK to 12.
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.
White paper, describing the major components of the formula
Complete formula spreadsheet, showing the detailed calculations for each municipality and district.
Questions about the Chapter 70 program should be directed to: