FY2021 Administrative Update on Chapter 70 Aid and Net School Spending Requirements

July 31, 2020

While critical information from the federal government is still needed in order to finalize a full fiscal year budget for the Commonwealth, the Baker-Polito Administration and the Legislature today committed to funding no less than the FY2020 level of funding for Chapter 70 education aid as a baseline amount for FY2021 funding.

This funding commitment includes Chapter 70 increases for inflation and enrollment that will keep all school districts at foundation, under the law as it existed for FY2020, providing an additional $107 million in aid or 2.1% over FY2020, increasing total funding from $5,176,002,652 to $5,283,313,579. This increase comes in addition to approximately $450 million in new federal supports for K–12 schools to assist with educating students during the pandemic.

The purpose of this administrative update is to provide certainty in local budget planning and fiscal management.

Key points about this administrative update include:

1. The aggregate wealth model that has been used to determine local contribution requirements since FY2007 remains in place. For municipalities with required contributions above their targets, the equity component of the formula is reduced by 100% of the gap.
2. Foundation budgets are increased by an inflation factor of 1.99%.
3. Statewide foundation enrollment decreased by 1,598 students or -0.17%; 14 districts saw their foundation enrollment increase by over 5%.
4. Economically disadvantaged enrollment continues to be used in lieu of free and reduced price lunch data, which is no longer available for all districts as a result of districts' participation in the USDA's Community Eligibility Program.
5. Assumed in-district special education enrollment percentages are held constant at FY2020 levels, 3.79% for non-vocational students and 4.79% for vocational students.
6. 112 operating districts receive foundation aid to ensure that they do not fall below their foundation budgets.

Here are links to more detailed information on this administrative update:

• Complete formula spreadsheet, showing the detailed calculations for each municipality and district

• Summary of Chapter 70 and COVID-19 related federal funding, showing Chapter 70 aid increases along with available Elementary and Secondary Emergency Relief (ESSER) funds and Coronavirus Relief Funds (CvRF) by district. Note that CvRF funds for Boston and Plymouth County districts are not included in the data presented in this spreadsheet because the City of Boston and Plymouth County are administering CvRF funds separately. Note also that neither $25 million in impending Remote Learning Technology grants to districts or $16 million dollars in discretionary ESSER funds are included in this spreadsheet.

The Department will continue to update this posting as more information becomes available. Questions about the Chapter 70 program should be directed to:

Rob O'Donnell
781-338-6512

Rob Hanna
781-338-6525

Last Updated: May 8, 2020