Archived Information

School Finance: Chapter 70 Program

MEMORANDUM

Net School Spending Requirement

As you know, the Commonwealth's school finance statute, Chapter 70 of the General Laws, establishes an annual minimum local contribution requirement for each Massachusetts school district. This local contribution, when added to a district's Chapter 70 aid, equals its "net school spending requirement." Failure to comply with this requirement may result in non-approval of a municipality's tax rate, enforcement action by the Attorney General, or loss of state aid.

The Department of Education is required to review and analyze the information submitted annually in each school district's End-of-Year Pupil and Financial Report to determine whether minimum local contributions and net school spending requirements for the prior and current years have been met. The Department's preliminary findings regarding your district's compliance with the requirements for fiscal years 2003 and 2004 are shown on the attached "Chapter 70 Net School Spending Compliance " sheets. These reports are being released to school districts once the Department's review of their financial data has been completed.

Professional Development

If you have any questions concerning compliance with either the net school spending or professional development requirements, please contact Roger Hatch in the School Finance unit at (781) 338-6527 (rhatch@doe.mass.edu). This information will also be available at http://finance1.doe.mass.edu/chapter70 on the School Finance area of the Department's web site in the near future.

Section 241 Maintenance Compliance

In order to maintain eligibility for school building assistance funds, a school district must spend at least 50 percent of its combined foundation maintenance and extraordinary maintenance targets each fiscal year (see 603 CMR 38.14). Your district's level of compliance in FY03 is shown in the last section of the Compliance Summary. FY04 budgeted amounts for maintenance are not reported in sufficient detail on Schedule 19 to estimate how close your district is to the FY04 requirement. However, I recommend that you review your spending plans in order to ensure that your final expenditures for the current year will meet the requirement.

Districts that did not meet the FY03 requirement may request waivers if the underspending was due to unanticipated or extraordinary changes in maintenance spending. Such circumstances may include, but are not limited to: opening of a new school building; closing of an existing building; completion of a major renovation project; significant reduction in utility costs; significant maintenance work performed by municipal or district employees; significant maintenance work performed under energy management contracts; or significant numbers of students tuitioned to other districts. Waivers require the approval of the Board of Education and the Deputy Commissioner of the Department of Revenue's Division of Local Services. Requests for FY03 waivers must be submitted by February 27, 2004, to Jay Sullivan, School Business Services, Massachusetts Department of Elementary and Secondary Education, 350 Main Street, Malden, MA 02148. Waiver requests must clearly explain the circumstances, provide any necessary supporting documentation, and be signed by the district superintendent. Districts that did not meet the 50% requirement and that have not submitted a waiver request by the February 27^th deadline will be deemed in non-compliance.

If you have any questions concerning the Section 241 maintenance requirement, please contact Jay Sullivan by e-mail at jsullivan@doe.mass.edu or by phone at 781-338-6594.

Thank you for your continuing support and cooperation as we work together to improve educational opportunities for all Massachusetts public school students.

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