FY2021 Chapter 70 Aid and Net School Spending Requirements

On December 11, 2020, Governor Baker signed the FY2021 state budget that authorizes $5,283,651,631 in Chapter 70 education aid to Massachusetts school districts. This budget increases aid by $107,648,979 or 2.08% over FY2020.

This funding commitment includes Chapter 70 increases for inflation and enrollment that will keep all school districts at foundation, under the law as it existed for FY2020.

Key points about the FY2021 program include:

1. The aggregate wealth model that has been used to determine local contribution requirements since FY2007 remains in place. For municipalities with required contributions above their targets, the equity component of the formula is reduced by 100% of the gap.
2. Foundation budgets are increased by an inflation factor of 1.99%.
3. Statewide foundation enrollment decreased by 1,598 students or -0.17%; 14 districts saw their foundation enrollment increase by over 5%.
4. Low income enrollment continues to be used in lieu of free and reduced-price lunch data, which is no longer available for all districts as a result of districts' participation in the USDA's Community Eligibility Program.
5. Assumed in-district special education enrollment percentages are held constant at FY2020 levels, 3.79% for non-vocational students and 4.79% for vocational students.
6. 113 operating districts receive foundation aid to ensure that they do not fall below their foundation budgets.

DESE has prepared the following materials to assist local officials in understanding the state aid calculations and local contribution requirements in this year's Chapter 70 program:

• Summary chart, showing foundation enrollment, foundation budget, Chapter 70 aid, and required local contributions for each school district.

• Summary chart for regional school districts, showing foundation enrollment and required local contributions for each member of the district.

• White paper, describing the major components of the formula in greater detail

• Complete formula spreadsheet, showing the detailed calculations for each municipality and district.

Questions about the Chapter 70 program should be directed to:

Rob Hanna
781-338-6525

Rob O'Donnell
781-338-6512

Last Updated: June 23, 2021