School Finance: Chapter 70 Program
FY14 Chapter 70 Aid and Net School Spending Requirements
July 12, 2013
On July 12th, 2013, Governor Patrick signed the FY14 state budget which authorizes $4,301,214,591 in Chapter 70 education aid to Massachusetts school districts. This budget increases aid by $130 million or 3.1 percent. Every operating district receives at least $25 in additional aid per student, and 73 operating districts receive increases so that they can keep pace with increases in their foundation budgets.
The Legislature decreased the amount of aid by $96 million over the House 1 preliminary numbers published in January, resulting in significant changes to both local contributions and aid. There were also a number of enrollment corrections submitted by districts since January, which result in additional changes to some communities' minimum required contributions.
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 required local contribution is reduced by 15% of the gap.
- 73 operating districts receive foundation aid to ensure that they do not fall below their foundation budgets.
- 104 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 140 percent or less are eligible for this aid. Those districts receive 25 percent of the difference between their target aid share and their Chapter 70 aid share.
- 203 operating districts receive minimum per pupil aid to ensure that they receive an increase of at least $25 per pupil over FY13.
- Foundation budgets are raised by an inflation factor of 1.55 percent. No other changes are made to the foundation budget.
- Enrollment grew by 0.4 percent although forty three percent of districts saw increases of as much as eighteen percent.
- Lanesborough and Cheshire join Northern Berkshire as new vocational district members. Ayer joins Nashoba Valley. Dighton and Rehoboth re-join Bristol Plymouth.
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: