School Finance: Chapter 70 Program
FY14 Preliminary Chapter 70 Aid and Net School Spending Requirements
January 23, 2013
Pursuant to section 6 of chapter 70 of the General Laws, the Commissioner of Elementary and Secondary Education is issuing the preliminary estimates of Chapter 70 school aid and net school spending requirements for FY14. These estimates are based on House 1, Governor Patrick's proposed state budget for the coming fiscal year. The proposal increases aid from $4.171 billion to $4.397 billion, an increase of $226 million or 5.4 percent. Every operating district receives at least $25 in additional aid per student, and 179 operating districts receive increases so that they can keep pace with increases in their foundation budgets.
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 and for the first time is fully implemented. For municipalities with required contributions above their targets, the equity component of the formula is fully phased in by reducing the requirement is reduced by 100% of the gap.
- 179 operating districts receive foundation aid to ensure that they do not fall below their foundation budgets.
- Foundation budgets are raised by an inflation factor of 1.55 percent.
- The foundation rate for out of district special education is increased by $10,000, from $25,848 to $35,848.
- Enrollment grew by .6 percent although forty seven percent of districts saw increases of as much as eleven percent. About half of this increase is due to the removal of the enrollment cap on pre-kindergarten regular education students.
- Lanesborough and Cheshire join Northern Berkshire as new vocational district members. Ayer joins Nashoba Valley. Dighton and Rehoboth re-join Bristol Plymouth.
- These are preliminary estimates subject to change as the House and Senate deliberate on the budget. Our purpose in providing these estimates at this time is to assist cities and towns in their own budget preparations for FY14. We advise you to construct your local budgets with sufficient flexibility to accommodate the changes that typically occur in the state budget process. The Commissioner will issue the final, official school spending requirements as soon as the Governor and Legislature approve either the FY14 state budget or an earlier local aid resolution. Those final numbers will then match the FY14 cherry sheets to be issued by the Department of Revenue.
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
Complete formula spreadsheet, showing the detailed calculations for each municipality and district.
Questions about the Chapter 70 program should be directed to: Melissa King firstname.lastname@example.org 781-338-6532