1. MARS General Meeting Nashoba Valley, Feb 12, 2013 Chapter 70 And State Budget Update Roger Hatch, Jay Sullivan, Christine Lynch, ESE

2. House 1: Key Points About Chapter 70 Massachusetts Department of Elementary and Secondary Education 2  Aid rises $226 million (5.4%) to $4.397 billion  Aggregate wealth model is fully implemented  Below-effort communities’ requirements ramped up  Out-of-district sped rates raised by $10,000  Capping of regular ed pk pupils eliminated  179 operating districts receive foundation aid  $25 per pupil minimum aid increase

3. Local Contributions Massachusetts Department of Elementary and Secondary Education 3  House 1 Chapter 70 proposal fully implements the effort-reduction targets for the first time.  241 communities with excess effort are reduced by 100% of that excess, amounting to $202 million in lower required contributions.  110 communities are below their targets and are moved closer by their municipal revenue growth factors, plus  an additional 2 percent if below by 2.5 to 7.5% (n=44)  an additional 3 percent if below by more than 7.5% (n=20)  The additional contributions total $28 million.

4. Progress Toward Target Contributions 1/23/2013 4

5. Progress Toward Target Contributions 1/23/2013 5

6. Implications for Regional Districts  Will these numbers hold in Legislature?  Proposed changes can create dramatic differentials in increases or decreases in assessments in some regionals  Regional districts need to go beyond rote explanations for why the numbers fall out the way they do—ESE WILL help!  Pay attention to the regional allocation 1/23/2013 6

7. Key Factors in School Funding Formula 1/23/2013 Foundation Budget Enrollment Wage Adjustment Factor Inflation Local Contribution Property value Income Municipal Revenue Growth Factor These six factors work together to determine a district’s chapter 70 aid. 7

8. Example: Bourne and Upper Cape Cod 1/23/2013 8

9. Bourne: Below, Above, Now Exactly AT Target 1/23/2013 9

10. Bourne’s Overall Contribution Drops, but at Upper Cape It Rises 1/23/2013 10

11. Regional Allocation Explains the Increase 1/23/2013 11

12. Calculating Chapter 70 Aid 1/23/2013 Base aid = FY13 c70 ($4.173 billion). Add together the base aid and the required local contribution. If the combined amount is less than foundation budget, then foundation aid provides additional funding for districts to spend at foundation levels. (179 operating districts) Each district received at least $25 per pupil in additional aid over FY13. 12

13. Urbanized centers receive largest increases per pupil

14. Biggest Increases in Aid Per Pupil 1/23/2013

15. Progress Toward Target Aid Share 1/23/2013 15

16. Progress Toward Target Aid Share 1/23/2013 16

17. Academic Regional Districts FY07 and FY14 1/23/2013 17

18. Vocational Regional Districts FY07 and FY14 1/23/2013 18

19. Minimums Come Full Circle 1/23/2013 19 Chapter 70 Preliminary Fy14 Minimum Contributions Per Pupil, Cape Cod Regional Vocational foundation minimum leamember city or townenrollmentbudgetper pupilcontributionper pupil 20BARNSTABLE1682,532,41115,0742,089,23912,436 41BREWSTER42633,10315,074522,31012,436 55CHATHAM23346,69915,074286,02712,436 75DENNIS931,401,87115,0741,156,54412,436 85EASTHAM14211,03415,074174,10312,436 126HARWICH851,281,27915,0741,057,05512,436 172MASHPEE55829,06315,074683,97712,436 224ORLEANS14211,03415,074174,10312,436 242PROVINCETOWN460,29615,07449,74412,436 300TRURO575,36915,07462,17912,436 318WELLFLEET 460,296 15,074 49,744 12,436 351YARMOUTH1472,215,86015,0741,828,08512,436

20. Regional Districts With Equal Contributions Per Pupil Preliminary FY14  Berkshire Hills $8274  Berlin Boylston 7688  Concord Carlisle 8483  Dennis Yarmouth 8312  Dover Sherborn 7755  Nauset 8013  Martha’s Vineyard 9152  Monomoy 7853  Southern Berkshire 7905  Cape Cod12436 1/23/2013 20

21. Chapter 70 Website http://finance1.doe.mass.edu/chapter70 / 1/23/2013 FY14 link 21

22. Circuit Breaker Massachusetts Department of Elementary and Secondary Education 22  Funded at FY13 amount ($230m)  Estimate reimbursements at between 65- 70%  Remember your mix of pupils served determines reimbursement, be aware of pupils “aging out” as well as new pupils served

23. Transportation  Homeless Transportation funded at $6.05m  Estimate reimbursement between 45-50% Regional Transportation level funded at $44.5m Estimate reimbursement between 50-55% Out of District Vocational Transportation funded at $250k Estimated reimbursement between 5-8% Massachusetts Department of Elementary and Secondary Education 23

24. Contact Info  Chapter 70  Melissa King, 781-338-6532 mking@doe.mass.edumking@doe.mass.edu  Roger Hatch, 781-338-6527 rhatch@doe.mass.edurhatch@doe.mass.edu  Circuit Breaker & Transportation  Jay Sullivan, 781-338-6594 jsullivan@doe.mass.edu  Regional Districts and Collaboratives  Christine Lynch, 781-338-6520 clynch@doe.mass.edu 1/23/2013