Archived Information

School Finance: Chapter 70 Program

MEMORANDUM

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 reviews and analyzes the information submitted annually on 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. Each district's compliance reports are being released to its school and municipal officials once the Department's review of its data has been completed The Department's preliminary findings regarding your district's compliance with the requirements for fiscal years 2004 and 2005 are shown on the attached "Chapter 70 Net School Spending Compliance" sheets.

Compliance with net school spending is also reported and periodically updated on our web site:

• Chapter 70 Net School Spending Compliance, FY04

• Chapter 70 Net School Spending Compliance, Budgeted FY05

There was no professional development spending requirement in FY04 or FY05. The Section 241 maintenance spending requirement does remain in effect. Districts will receive guidance from the new School Building Authority as to how that requirement will be handled under the new SBA law.

If you have any questions concerning this information, please contact Roger Hatch in the School Finance unit at (781) 338-6527 (rhatch@doe.mass.edu).

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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