School Finance: Chapter 70 Program

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1. FY01 FOUNDATION ENROLLMENT: October 1, 1999 enrollment as reported on the Foundation Enrollment Report, School Choice Claim Forms and Charter School Claim Forms.

2. FY01 FOUNDATION BUDGET: Foundation Enrollment multiplied by the various components of the foundation formula (see blue sheets).

3. FY00 NET SCHOOL SPENDING: Minimum spending required in FY00, under the terms of Chapter 70.

4. SPENDING GAP: FY01 Foundation Budget minus FY00 Net School Spending: (2) - (3).

5. FY00 IMPACT AID: Estimated FY00 expenditures of P.L. 874 Impact Aid.

6. FY00 EXCESS DEBT: The FY00 long term debt obligation for school construction reduced by State School Building Assistance, that exceeded the FY99 state average of $130 per pupil.

7. FY01 EXCESS DEBT: The estimated FY01 long term debt obligation for school construction reduced by estimated FY01 State School Building Assistance, that exceeds the FY00 state average of $160 per pupil. As stipulated by sections 93 and 94 of the FY00 state budget, the initial calculation of FY01 excess debt is reduced by a) any FY00 supplemental aid that was generated by FY01 excess debt, and b) any excess debt amounts that would result in FY01 net school spending being less than the FY01 foundation budget.

8. 1998 EQUALIZED VALUATION: The Department of Revenue's 1998 estimate of each city and town's property tax base.

9. CY1989 AVERAGE INCOME: The U.S. Census estimate of the per-capita income in each city and town in calendar year 1989. The state average per-capita income was $17,224.

10. ADJUSTED EQUALIZED VALUATION: Equalized Valuation multiplied by the Average Income Per Capita divided by the State Average Income of $17,224: (8) X (9)/17,224.

11. FY00 GROSS STANDARD: The amount of local effort that would have been raised in FY94 with a school tax rate of $9.40, increased by the municipal revenue growth factor for each year between FY95 and FY01.

12. FY01 MUNICIPAL REVENUE GROWTH FACTOR: An estimate of the increase in available revenues calculated by the Department of Revenue for FY01 for each municipality. The maximum growth factor for FY01 Chapter 70 is 4.7222 percent.

13. FY01 GROSS STANDARD: FY00 Gross Standard of Effort multiplied by the FY01 Municipal Revenue Growth Factor: (11) X (12).

14. MINIMUM PER PUPIL @ $150: FY01 Foundation Enrollment times $150: (1) X $150.

15. FY01 STANDARD OF EFFORT: The lesser of the FY01 Gross Standard of Effort or FY01 Foundation Budget minus FY01 Base Aid minus FY00 Impact Aid minus FY01 $150 Per Pupil minus FY01 Choice Aid: (13) or ((2) - (27) - (5) - (14) - (32)).

16. FY93 LOCAL CONTRIBUTION: The local contribution in FY 93.

17. FY00 LOCAL CONTRIBUTION: The minimum local contribution required in FY00.

18. FY01 PRELIMINARY CONTRIBUTION: If the FY00 local contribution exceeds the FY01 gross standard and there is a positive spending gap, then the greater of the FY93 local contribution and the gross standard: if (4) > 0 and (17) > (13), then the greater of (13) or (16).

    Otherwise, the lesser of a) the FY00 local contribution increased by the growth factor and FY00 net excess debt, and b) the gross standard: the lesser of ((17) X (1 + (12)) + (6)) and (13).

    In addition, no community with FY00 net school spending above the foundation is allowed to drop below foundation. Its smallest allowable preliminary contribution is set at the foundation minus base aid minus $150 per pupil minus choice aid minus impact aid: (2) - (27) - (14) - (32) - (5).

19. FY01 STANDARD OF EFFORT GAP: The FY01 Standard of Effort minus the FY01 Preliminary Contribution: (15) - (18).

20. FY01 VALUATION RATIO: Adjusted Equalized Valuation divided by FY01 Foundation Enrollment divided by $477,815, the state average adjusted equalized valuation per pupil: (10)/(1)/$477,815.

21. FY01 OVERBURDEN PERCENTAGE:

    If the FY01 Valuation Ratio is less than or equal to 95% then 100%: If (20) < 95% then 100%.

    If the FY01 Valuation Ratio is greater than 95% and less than 120% then 195% minus the FY01 Valuation Ratio: If (20) > 95% and < 120% then 195% - (20).

    If the FY01 Valuation Ratio is greater than or equal to 120% then 0 percent: If (20) > = 120% then 0 %.

    If the Average Income is less than the state average, then 100%: If (9) < $17,224 then 100%.

22. FY01 GROSS OVERBURDEN: FY01 Standard of Effort Gap times the FY01 Overburden percentage: (19) X (21).

23. FY01 MINIMUM CONTRIBUTION: FY01 Preliminary Contribution plus the FY01 Standard of Effort Gap multiplied by 100 per cent minus FY01 Overburden Aid: (18) + ((19) X 1.0)) - (31). In addition, no district spending above the Foundation Budget will be allowed to reduce its spending below that level.

24. FY01 FOUNDATION GAP: The FY01 Foundation Budget minus FY01 Base Aid minus FY00 Impact Aid minus FY01 Choice Aid minus the greater of the FY01 Preliminary Local Contribution or the FY01 Standard of Effort: ((2) - (27) - (5) - (32) - > (18) or (15)).

25. FY01 EQUITY GAP: The difference between the FY01 Preliminary Contribution minus the FY01 Gross Standard of Effort, and the FY01 Preliminary Contribution plus the FY01 Base Aid plus the FY00 Impact Aid plus the FY01 $150 Per Pupil minus the FY01 Foundation Budget: ((18)-(13)) - ((18) + (27)+ (5) + (14)) - (2)).

26. NET MINIMUM CONTRIBUTION: FY01 Minimum Contribution minus FY01 Equity Aid minus FY01 Excess Debt: (23) - (30) - (7). No district spending above the Foundation Budget will be allowed to reduce its spending below that level. For towns affected by the spending cap for regional vocational districts (Section 126 of the FY00 state budget), the reductions are reflected in this column.

27. FY01 BASE AID: The combined amount of FY00 Base Aid, FY00 Foundation Aid, FY00 Choice Aid, FY00 Minimum Aid and FY00 Supplemental Aid. The other supplemental aid category in FY00, "Non-Recurring Supplemental Aid," is not included in this year's base aid, in accordance with language in the FY00 state budget.

28. FY01 MINIMUM AID: If FY01 Foundation Aid equals zero, then FY01 $150 per pupil: If (29) = 0 then (14).

    If FY01 Foundation Aid is greater than the FY01 $150 per pupil, the district will not receive Minimum Aid: If (29) > (14) then 0.

    Otherwise, the difference between FY01 $150 Per Pupil and the FY01 Foundation Aid: (14) - (29).

29. FY01 FOUNDATION AID: FY01 Foundation Gap times 100 percent: (24) X 1.0, which is the FY01 Foundation Percentage.

30. FY01 EQUITY AID: FY01 Equity Gap times 100 percent: (25) X 1.0.

31. FY01 OVERBURDEN AID: FY01 Gross Overburden times 100 percent: (22) X 1.0.

32. FY01 CHOICE AID: applies only to districts with FY00 net school spending below their FY01 foundation budgets. Choice Aid equals a sending district's estimated increase in school choice tuition between FY99 and FY00 as of December, 1999.

33. SUPPLEMENTAL AID: If other components of the formula did not already result in an overall Chapter 70 increase of $175 per pupil compared to final FY00 Chapter 70, then a district receives enough to bring it up to that level. Also, where formulaic calculations leave districts' required net school spending at levels slightly below their foundation budgets, additional aid fills those gaps.

34. TOTAL FY01 CHAPTER 70: The sum of Base Aid, Minimum Aid, Foundation Aid, Equity Aid, Overburden Aid, Choice Aid, and Supplemental Aid (27) + (28) + (29) + (30) + (31) + (32) + (33).

35. FY01 NET SCHOOL SPENDING: Required spending in FY01, the sum of net minimum contribution and Chapter 70 (26) + (34).

ADDITIONAL COLUMNS ON DISTRICT SUMMARY PAGES (white pages)

FY01 PROFESSIONAL DEVELOPMENT REQUIREMENT: the $125 per pupil minimum amount to be spent in FY01 for professional development activities. This item can be counted toward the net school spending requirement.

SECTION 3 C70 INCREMENT PRELIM FY01 to FINAL FY01: Section 3 of the final FY01 state budget stipulates how increases in Chapter 70 between Preliminary FY01 amounts and the final amounts published here should be made available to school committees for FY01 expenditure. A joint letter from the Department of Revenue and Department of Education will explain in more detail how this spending is to be authorized and accounted for.