MARS General MeetingNashoba Valley, Feb 12, 2013

Chapter 70 And State Budget UpdateRoger Hatch, Jay Sullivan, Christine Lynch, ESE

House 1: Key Points About Chapter 70

Massachusetts Department of Elementary and Secondary Education

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Aid rises $226 million (5.4%) to $4.397 billion Aggregate wealth model is fully implemented Below-effort communities’ requirements

ramped up Out-of-district sped rates raised by $10,000 Capping of regular ed pk pupils eliminated 179 operating districts receive foundation aid $25 per pupil minimum aid increase

Local Contributions

Massachusetts Department of Elementary and Secondary Education

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House 1 Chapter 70 proposal fully implements the effort-reduction targets for the first time.

241 communities with excess effort are reduced by 100% of that excess, amounting to $202 million in lower required contributions.

110 communities are below their targets and are moved closer by their municipal revenue growth factors, plus an additional 2 percent if below by 2.5 to 7.5% (n=44) an additional 3 percent if below by more than 7.5%

(n=20) The additional contributions total $28 million.

Progress Toward Target Contributions

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Progress Toward Target Contributions

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Implications for Regional Districts Will these numbers hold in Legislature? Proposed changes can create dramatic

differentials in increases or decreases in assessments in some regionals

Regional districts need to go beyond rote explanations for why the numbers fall out the way they do—ESE WILL help!

Pay attention to the regional allocation

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Key Factors in School Funding Formula

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Foundation Budget• Enrollment• Wage Adjustment

Factor• Inflation

Local Contribution• Property value• Income• Municipal Revenue

Growth Factor

These six factors work together to determine a district’s chapter 70 aid.

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Example: Bourne and Upper Cape Cod

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Bourne: Below, Above, Now Exactly AT Target

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Bourne’s Overall Contribution Drops, but at Upper Cape It Rises

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Regional Allocation Explains the Increase

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Calculating Chapter 70 Aid

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• Base aid = FY13 c70 ($4.173 billion).

• Add together the base aid and the required local contribution.

• If the combined amount is less than foundation budget, then foundation aid provides additional funding for districts to spend at foundation levels. (179 operating districts)

• Each district received at least $25 per pupil in additional aid over FY13.

10 ARLINGTON

Aid Calculation FY14

Prior Year Aid

1 Chapter 70 FY13 8,109,496

Foundation Aid

2 Foundation budget FY14 46,899,313

3 Required district contribution FY14 37,130,874

4 Foundation aid (2 -3) 9,768,439

5 Increase over FY12 (4 - 1) 1,658,943

6 Minimum $25 per pupil increase 0

Non-Operating District Reduction to Foundation

7 Reduction to foundation 0

FY14 Chapter 70 Aid8 sum of line 1, 5 and 6 minus 7 9,768,439

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Urbanized centers receive largest increases per pupil

Biggest Increases in Aid Per Pupil

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Progress Toward Target Aid Share

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Progress Toward Target Aid Share

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Academic Regional Districts FY07 and FY14

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Vocational Regional Districts FY07 and FY14

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Minimums Come Full Circle

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Chapter 70 Preliminary Fy14

Minimum Contributions Per Pupil, Cape Cod Regional Vocational

foundation foundation foundation minimum minimumlea member city or town enrollment budget per pupil contribution per pupil

20BARNSTABLE 168 2,532,411 15,074 2,089,239 12,436

41BREWSTER 42 633,103 15,074 522,310 12,436

55CHATHAM 23 346,699 15,074 286,027 12,436

75DENNIS 93 1,401,871 15,074 1,156,544 12,436

85EASTHAM 14 211,034 15,074 174,103 12,436

126 HARWICH 85 1,281,279 15,074 1,057,055 12,436

172 MASHPEE 55 829,063 15,074 683,977 12,436

224 ORLEANS 14 211,034 15,074 174,103 12,436

242PROVINCETOWN 4 60,296 15,074 49,744 12,436

300 TRURO 5 75,369 15,074 62,179 12,436

318 WELLFLEET 4 60,296 15,074 49,744 12,436

351 YARMOUTH 147 2,215,860 15,074 1,828,085 12,436

Regional Districts With Equal Contributions Per Pupil Preliminary FY14

Berkshire Hills $8274 Berlin Boylston 7688 Concord Carlisle 8483 Dennis Yarmouth 8312 Dover Sherborn 7755 Nauset 8013 Martha’s Vineyard 9152 Monomoy 7853 Southern Berkshire 7905 Cape Cod 12436

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Chapter 70 Websitehttp://finance1.doe.mass.edu/chapter70/

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FY14 link

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Circuit Breaker

Massachusetts Department of Elementary and Secondary Education

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Funded at FY13 amount ($230m) Estimate reimbursements at between

65-70% Remember your mix of pupils served

determines reimbursement, be aware of pupils “aging out” as well as new pupils served

Transportation

Homeless Transportation funded at $6.05m Estimate reimbursement between 45-50%

Regional Transportation level funded at $44.5mEstimate reimbursement between 50-55%

Out of District Vocational Transportation funded at $250kEstimated reimbursement between 5-8%

Massachusetts Department of Elementary and Secondary Education

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Contact Info Chapter 70 Melissa King, 781-338-6532 mking@doe.mass.edu

Roger Hatch, 781-338-6527 rhatch@doe.mass.edu

Circuit Breaker & Transportation Jay Sullivan, 781-338-6594

jsullivan@doe.mass.edu

Regional Districts and Collaboratives Christine Lynch, 781-338-6520 clynch@doe.mass.edu

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