School Budget Basics- State Funding 101

School Funding Basics:State Funding 101

MURSD Regional School CommitteeNovember 7, 2011

What is Chapter 70?

It is the state’s program to provide aid to public elementary and secondary schools

It also establishes a minimum spending requirement for each school district and minimum requirements for each municipality’s share of district cost

One of the hallmarks of Chapter 70 is the establishment of the Foundation Budget

Foundation Budget

History: Established in FY94, modified in FY07

Original Intent: “To develop an adequate- but not excessive- level of funding.” It is a minimum funding level

The Foundation Budget formula looks at 11 different funding categories, 13 different enrollment subpopulations, & geographical location in MA to develop a per pupil budget

The amount varies from district to district: $9,729 is avg for FY12 (high- $11,539 in Boston, low- $7,988 in Marion)… MURSD’s is $8,584 per pupil

Required Local Contribution

Chapter 70 also provides for a Required Local Contribution: based upon 2 factors-

The previous year’s required contribution

The municipality’s wealth (based upon aggregate personal income levels and property valuations)

• DESE has established a target local share of 59% and target aid share of 41%

Net School Spending

Also known as the “Net School Spending Requirement”

Net School Spending =

Required Local Contribution + Chapter 70 Aid

Required Net School Spending =Required Local Contribution + Chapter 70 Aid

MURSD: Local Contribution vs. Ch. 70

AidYear Ch. 70

Funding (%)

Req. Local Cont. (%)

Req. Net Sch. Spend

Actual Net Sch. Spend

FY04 $ 7,820,674 (52.8%)

$ 6,993,990 (47.2%)

$14,814,664 $16,768,757

FY05 $ 8,768,548 (54.4%)

$ 7,359,617 (45.6%)

$16,128,165 $18,651,175

FY06 $ 9,708,625 (55.1%)

$ 7,917,147 (44.9%)

$17,625,772 $20,406,325

FY07 $10,852,173 (56.2%)

$ 8,448,890 (43.8%)

$19,301,068 $22,181,930

FY08 $11,687,998 (56.6%)

$ 8,956,960 (43.4%)

$20,644,958 $24,436,132

FY09 $11,227,445 (54.3%)

$ 9,449,432 (45.7%)

$20,676,877 $23,950,830

FY10 $12,295,995 (54.8%)

$10,147,020 (45.2%)

$22,443,015 $24,501,200

FY11 $11,793,702 (52.7%)

$10,574,513 (47.3%)

$22,368,215 $24,428,996

FY12 $11,857,016 (51.8%)

$11,066,163 (48.2%)

$22,923,179

MURSD Budgets & Net School Spending, FY93- FY11

Actual Net School Spending- MURSD vs. State Avg, FY02-

11

FY02

FY03

FY04

FY05

FY06

FY07

FY08

FY09

FY10

FY11

102.0%

104.0%

106.0%

108.0%

110.0%

112.0%

114.0%

116.0%

118.0%

120.0%

107.6%

112.9%113.2%

115.6% 115.8% 114.9%

118.4%

115.8%

109.2% 109.2%108.7%

109.4%

110.9% 111.3%

113.0% 113.3%114.3% 114.0%

116.2%

MURSDState Avg