Who is a member?
Our members are the local governments of Massachusetts and their elected and appointed leadership.
• Unrestricted municipal aid would increase by $42 million (4.3%)
• Chapter 70 education aid would increase by only $72 million (1.6%)
• Most other municipal and education accounts level-funded
Gov. Charlie Baker submitted a $39.55 billion fiscal 2017 state budget plan with the Legislature today, proposing a spending blueprint that would increase overall state expenditures by 3.5 percent, as the administration seeks to close a projected $635 million structural budget deficit by restraining spending across the board.
The governor’s budget includes a $42 million increase in Unrestricted General Government Aid and $72 million more for Chapter 70 education aid.
Most other municipal and education aid accounts in the governor’s budget proposal would remain at fiscal 2016 levels. This includes the special education circuit breaker, payments in lieu of taxes, regional school transportation, Shannon anti-gang grants, McKinney-Vento reimbursements and METCO funding. Kindergarten development grants would be level-funded, with language to have the state develop guidelines to have recipients focus on early literacy outcomes.
The governor would increase funding for charter school reimbursements by $20.5 million, yet proposes to revamp the reimbursement formula so that this increase would be targeted to those cities, towns and school districts where the charter cap exceeds 9 percent of net school spending because of underperforming test scores.
• Link to UGGA and Chapter 70 Aid amounts listed by community in the governor’s budget
• Link to the Division of Local Services’ preliminary fiscal 2017 Cherry Sheet amounts for each community based on governor’s budget (insert name of community and “2017” in the fiscal year field)
• Link to fiscal 2017 Chapter 70 aid and net school spending requirements for each city, town or regional school district, based on governor’s budget
Unrestricted municipal aid
House 2 (the governor’s fiscal 2017 budget bill) would provide $1.022 billion for UGGA, a $42 million increase over current funding. This fulfills one of Gov. Baker’s major campaign promises, to increase direct municipal aid by the same rate of growth as state tax revenues.
The 4.3 percent increase in UGGA would be the largest increase in discretionary municipal aid in nearly a decade. Every city and town would see its UGGA funding increase by 4.3 percent.
Chapter 70 school aid
The governor proposes a small 1.6 percent increase in Chapter 70 education aid, providing every city, town and school district with a minimum increase of at least $20 per student. The governor’s budget would continue to implement the target share provisions enacted in 2007.
The overall Chapter 70 increase would be significantly smaller than in recent years. Nearly 70 percent of cities and towns would only receive an increase of $20 per student under the governor’s budget. The MMA argues that this below-inflation increase is far too low and would force communities to reduce school programs or further shift funds from the municipal side of the budget.
The MMA will be asking legislators to support a funding increase for Chapter 70 school aid that ensures that all schools receive a suitable and appropriate increase in fiscal 2017, which the MMA believes should be at least $100 per student. The MMA also strongly supports implementation of the recommendations of the Foundation Budget Review Commission to update the Chapter 70 “foundation budget” minimum spending standards for special education and health insurance costs for school employees, and to add to the spending standard a measure of recognition for the cost of services for low-income, English Language Learner (ELL) and other students who would benefit from more intensive services. The commission recommended phasing in the changes over a four-year period, a position the MMA supports as well. Increasing minimum aid and fixing the inadequacies in the foundation formula are essential.
It should also be noted that House 2 contains language that would continue to allow communities to count retiree health insurance toward their net school spending, but only if they have done so beginning when the school finance law first went into effect in 1994, or if they have already voted to adopt the local-option provision in Section 260 of the fiscal 2015 general appropriations act to allow a phase-in of retiree health insurance costs in their net school spending calculation.
Special education circuit breaker
The governor’s budget would level-fund the Special Education Circuit Breaker program at $271.7 million. Because special education costs are expected to rise by 3.5 percent in fiscal 2017, this means that the governor’s budget likely underfunds reimbursements by approximately $10 million.
This is a vital account that every city, town and school district relies on to fund state-mandated services. The Legislature has fully funded the program for the past four years, and the MMA will again be asking lawmakers to ensure full funding in fiscal 2017.
Charter school reimbursements
The governor’s budget would add $20.5 million to charter school reimbursements, bringing funding up to $101 million. In fiscal 2017, all communities would receive 100 percent reimbursement for their increased charter school tuition payments above fiscal 2016 levels.
For most communities, the current five-year reimbursement schedule would be replaced with a one-year reimbursement of increased costs compared to the previous year. For underperforming school districts that have a charter cap that is higher than 9 percent of net school spending, the governor is proposing a three-year schedule, to reimburse those communities 100 percent in the first year, 50 percent in the second year, and 25 percent in the third year. Local officials will need to examine their own enrollment and tuition costs to determine how this new formula would affect them.
• Link to Division of Local Services’ preliminary Cherry Sheets for estimate of the tuition amount and reimbursement amount for each community
Regional school transportation
Gov. Baker’s budget would level-fund regional transportation reimbursements at $59 million, which the MMA argues would create a hardship for virtually all communities in regional districts.
Kindergarten grants and McKinney-Vento
The governor’s budget would level-fund reimbursements for the transportation of homeless students at $8.35 million. With this amount of funding, the account remains far below the full reimbursement called for under the state’s unfunded mandate law. Kindergarten development grants would be level funded at $18.6 million, with language to have the state develop guidelines to have recipients focus on early literacy outcomes.
PILOT and Shannon and library grants
The governor’s budget would level-fund payments in lieu of taxes at $26.77 million and Shannon anti-gang grants at $7 million. Library grant programs would be funded at $18.9 million, a reduction of $79,000.