Archived Information

School Finance: Chapter 70 Program

Final Chapter 70 Aid and Net School Spending Requirements for FY03

July 30, 2002

The Governor signed the FY03 state budget on July 29. The budget includes a $40 million net increase in Chapter 70 aid for K-12 school districts. Click here for summary charts showing the final Chapter 70 aid, required local contributions, and net school spending requirements for local school districts and regional school districts. Detailed reports describing how this year's aid and contributions were calculated are available in an Excel spreadsheet.

• The enrollment growth aid program and the supplemental aid program for districts with schools for the deaf have both been folded into the Chapter 70 program.

• Every district has been held harmless to its FY02 Chapter 70 aid.

• Every district has received sufficient aid to meet its foundation budget target.

• Required local contributions are based on the Governor's proposals in House 1 (published on this website under preliminary FY03 estimates). Some adjustments have been made to the previously-published local requirements to reflect corrections to data submissions.

• The "target share" proposals to address historical inequities in the Chapter 70 calculation have not been adopted or funded.

• The $125 per pupil spending requirement for professional development activities has been retained.

Towns whose Chapter 70 aid is higher than the amount estimated in the House Ways & Means budget may appropriate the increase using an expedited process. This process requires a request from the school committee; a recommendation from the local appropriation, finance, or advisory committee, if any; and approval by the board of selectmen or town council. The amount of the increase eligible for this approval process is shown on the above summary charts. An advisory from the Division of Local Services describes how the votes are to be taken and how the additional funds should be accounted for.

Cities and towns are reminded that Chapter 70 requires each municipality to appropriate the full amount of the net school spending requirement. The so-called "95%" rule, which allows the Department to waive penalties if actual net school spending is at least 95% of the requirement, is intended to help districts deal with unexpected spending shortfalls during the year. It does not allow districts to appropriate less than the full amount of the spending requirement.

Even though the preliminary figures for FY03 Chapter 70 aid published in February are out of date, the accompanying calculations of foundation budgets and required local spending are still applicable, so we have left all of the preliminary FY03 materials posted.