School Finance: Chapter 70 Program
FY13 Chapter 70 Aid and Net School Spending Requirements
July 9, 2012
On July 8th, 2012, Governor Patrick signed the FY13 state budget which authorizes $4,171,079,892 in Chapter 70 education aid to Massachusetts school districts. Statewide aid increases above FY12 amounts by $180 million or 4.53 percent. Every operating district receives an increase of at least $40 per pupil over FY12.
The Legislature increased the amount of aid by $35 million over the House 2 preliminary numbers that were published in January. There were also a number of enrollment corrections submitted by five districts since January, which result in slight changes to some communities' minimum required contributions.
Here are some of the key points about the FY13 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 15 percent of the gap (compared to 20 percent last year).
- 115 operating districts receive foundation aid to ensure that they do not fall below their foundation budgets.
- 109 operating districts receive aid to phase in their target aid share. Districts with a combined effort yield (CEY) as a percent of their foundation budget of 107.5 percent or less are eligible for this aid. Those districts receive 25% of the difference between their target aid share and their Chapter 70 aid share.
- 180 operating districts receive minimum per pupil aid to ensure that they receive an increase of at least $40 per pupil over FY12.
- Foundation budgets are raised by an inflation factor of 3.65 percent.
- Enrollment fell by 0.3 percent although 122 districts saw increases of as much as ten percent. .
- Monomoy is a new K-12 regional school district comprising Chatham and Harwich. The Southwick-Tolland K-12 regional school district welcomes Granville as a new member.
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: