[ Text of section effective until February 24, 2020. For text effective February 24, 2020, see below.]
Section 2. As used in this chapter and in chapters fifteen, sixty-nine and seventy-one, the following words shall, unless the context clearly requires otherwise, have the following meanings:--
"Adjusted property valuation'', the equalized property valuation of the municipality multiplied by the most recent average annual per capita income for the municipality, divided by the average annual per capita income for the commonwealth for the same period, as reported by the United States bureau of census.
"Assumed tuitioned-out special education enrollment'', one percent of the total foundation enrollment in a district, not counting vocational or pre-school enrollment.
"Assumed in-school special education enrollment'', 3.75 per cent of total foundation enrollment in a district not counting vocational or preschool enrollment, plus 4.75 per cent of vocational enrollment.
"Base aid'', in any fiscal year, the total of base aid, minimum aid and foundation aid of the previous fiscal year. In fiscal year nineteen hundred and ninety-four, base aid shall be state school aid in fiscal year nineteen hundred and ninety-three; provided, however, that the amount of aid deemed to have been distributed in fiscal year nineteen hundred and ninety-three pursuant to section sixteen D of chapter seventy-one shall be adjusted to equal the amount that would have been distributed in fiscal year nineteen hundred and ninety-four in accordance with paragraph (e) of section sixteen D of said chapter seventy-one but for the provisions of this chapter and paragraph (f) of said section sixteen D of chapter seventy-one; and provided, further, that, for any district in which net school spending is less than the foundation budget in determining base aid in the current fiscal year, the base aid amount of the previous fiscal year shall be adjusted by adding any amount that will be deducted in the current fiscal year pursuant to the provisions of section twelve B of chapter seventy-six for students that applied and were accepted at receiving districts during the prior fiscal year; provided, however, that the students identified in subsection (m) of said section twelve B, shall be deemed for the purposes of this calculation to have been accepted at receiving districts during fiscal year nineteen hundred and ninety-three.
"Base year foundation budget'', the sum of foundation base year payroll, foundation non-salary base year expenses, the professional development allotment, expanded program allotment, extraordinary maintenance allotment, and book and equipment allotment. The base year foundation is the foundation budget for fiscal year nineteen hundred and ninety-three.
"Board'', the board of education.
"Book and equipment allotment'', the amounts allotted within a district's foundation budget for books and equipment in any fiscal year. The book and equipment allotment shall be the sum of:
(a) one hundred and twenty-five dollars multiplied by the sum of the foundation kindergarten enrollment and the foundation pre-school enrollment; plus
(b) two hundred and fifty dollars multiplied by the sum of the foundation elementary enrollment, the foundation bilingual enrollment and the foundation junior high/middle school enrollment; plus
(c) four hundred dollars multiplied by the foundation high school enrollment; plus
(d) seven hundred dollars multiplied by the foundation vocational enrollment; plus
(e) two hundred dollars multiplied by the assumed in-school special education enrollment.
"Commissioner'', the commissioner of the department of education within the executive office of education.
"Department'', the department of education within the executive office of education.
"District'' or "School district'', the school department of a city or town, and a regional school district.
"Enrollment categories'', each student, including students enrolled in special education programs, and students attending a school in another district, pursuant to the provisions of section twelve B of chapter seventy-six, who resides in the district and who attends either a public school in that district or a school for which the district of residence pays tuition, shall be placed in one and only one of the following enrollment categories depending on the grade and program to which the student is assigned:
(A) "Bilingual enrollment'', the number of students enrolled in English learner programs established under chapter 71A but, in the case of an innovative program, only the English learners as defined in chapter 71A enrolled in such program shall be considered in calculating bilingual enrollment in a district.
(B) "Elementary enrollment'', number of students enrolled in grades one through five and not enrolled in bilingual or vocational programs in a district.
(C) "High school enrollment'', the number of students enrolled in grades nine through twelve and not enrolled in bilingual or vocational programs in a district.
(D) "Junior high/middle school enrollment'', the number of students enrolled in grades six through eight and not enrolled in bilingual or vocational programs in a district.
(E) "Kindergarten enrollment'', the number of students enrolled in kindergarten and not enrolled in bilingual or vocational programs in a district; provided, however, that in any district in which kindergarten students attend school for a full day, the foundation kindergarten enrollment used to calculate the foundation budget amount described in this section shall be two times the kindergarten enrollment number that would otherwise be used for said calculations if said district and all towns responsible for appropriating for said district so request.
(F) "Pre-school enrollment'', the number of students enrolled in pre-school programs run in connection with the special education program in a district. The foundation pre-school enrollment may not exceed twice the number of pre-school students enrolled under approved individual education plans.
(G) "Vocational enrollment'', the number of students enrolled in vocational and occupational education programs or an agricultural school in a district.
"Equalized property valuation'', the annual equalized property valuation for a municipality as determined by the department of revenue pursuant to the provisions of sections nine, ten and ten C of chapter fifty-eight.
"Equity aid'', aid amounts payable to municipalities in any fiscal year equal to the equity gap multiplied by the foundation aid percent.
"Equity gap'', the positive difference, if any, between (1) the positive difference, if any between the preliminary local contribution and the gross standard of effort and (2) the positive difference, if any, between the sum of the preliminary local contribution, base aid, minimum aid and federal impact aid and the foundation budget amount. The equity gap shall be defined separately for each municipality's share of each district of which it is a member.
"Excess debt service amount'', shall be the difference, if any, between (i) the municipality's share of long-term debt service in support of school construction and (ii) the statewide average of local share of long-term debt service in support of school construction, on a per pupil basis, multiplied by the foundation number of pupils in the town. For regional school districts, the excess debt service amount shall be allocated amongst member municipalities according to the provisions of the regional school district agreement. The excess debt service amount for a municipality shall be the sum of the municipality's share of excess debt service amounts for all of the regional districts of which it is a member.
"Expanded program allotment'', the amount allotted within a district's foundation budget for providing expanded educational services for low-income students. The expanded program allotment shall be determined by multiplying the number of low-income elementary and middle school students in a district by the wage adjustment factor by three hundred and eighty dollars.
"Extraordinary maintenance allotment'', the amount allotted within a district's foundation budget for extraordinary maintenance costs in any fiscal year. The extraordinary maintenance allotment shall be two thousand, two hundred dollars multiplied by the sum of the foundation teaching staff and the foundation support staff.
"Foundation aid'', aid amounts payable to municipalities in any fiscal year equal to the foundation gap multiplied by the statewide foundation aid percent.
"Foundation aid percent'', the result of dividing (1) the difference between the amount appropriated for the implementation of this chapter and the sum of the total base aid and total minimum aid by (2) the sum of the statewide foundation gap, the state overburden obligation, and the statewide equity gaps.
"Foundation assistants'', the number of school assistants or aides allotted within a district's foundation budget in any fiscal year. The number of foundation assistants shall be the sum of:
(a) six thousandths multiplied by the sum of the foundation kindergarten enrollment and the foundation pre-school enrollment; plus
(b) twelve thousandths multiplied by the sum of the foundation elementary enrollment and the foundation bilingual enrollment; plus
(c) two thousandths multiplied by the foundation junior high/middle school enrollment; plus
(d) eight ten-thousandths multiplied by the sum of the foundation high school enrollment and the foundation vocational enrollment; plus
(e) one hundred and twenty-five thousandths multiplied by the assumed in-school special education enrollment.
"Foundation athletic expenses'', the amount allotted within a district's foundation budget for athletic expenses in any fiscal year. The foundation athletic expenses shall be the sum of:
(a) fifty dollars multiplied by the foundation junior high/middle school enrollment; plus
(b) two hundred dollars multiplied by the sum of the foundation high school enrollment and the foundation vocational enrollment.
"Foundation benefits'', the amount allotted within a district's foundation budget for the purchase of employee benefits and other insurance in any fiscal year. The foundation benefits shall be the sum of the following:
(a) four thousand three hundred and twenty dollars multiplied by the wage adjustment factor multiplied by the sum of the foundation teaching staff, the foundation support staff, the foundation assistants, the foundation principals, the foundation clerical staff, the foundation health care staff, the foundation central office professional staff and the foundation custodial staff; plus
(b) four hundred and sixty dollars multiplied by the sum of the foundation teaching staff, the foundation support staff, the foundation assistants, the foundation principals, the foundation clerical staff, the foundation health care staff, the foundation central office professional staff and the foundation custodial staff; plus
(c) two hundred and thirty dollars multiplied by the foundation vocational staff.
"Foundation budget'', the sum of the foundation payroll, foundation non-salary expenses, professional development allotment, expanded program allotment, extraordinary maintenance allotment, and book and equipment allotment. The base year for calculating the foundation budget shall be fiscal year nineteen hundred and ninety-three. The base year foundation budget shall be calculated according to the formulas in this section using foundation enrollment as described in this section. For fiscal years thereafter, the foundation budget shall be the base year foundation budget, as adjusted for enrollment and for inflation as set forth in section three of this chapter.
"Foundation central office professional staff'', the number of professional staff allotted within a district's foundation budget in any fiscal year for central office duties. The foundation central office professional staff shall be the sum of:
(a) two thousandths multiplied by the total foundation enrollment; plus
(b) fifteen thousandths multiplied by the sum of assumed in-school special education enrollment and assumed tuitioned-out special education enrollment; plus
(c) twenty-five hundred-thousandths multiplied by the foundation vocational enrollment.
"Foundation clerical staff'', the number of staff allotted within a district's foundation budget in any fiscal year for clerical duties. The foundation clerical staff shall be the sum of:
(a) two hundred and seventy-five hundred-thousandths multiplied by the sum of the foundation kindergarten enrollment and the foundation pre-school enrollment; plus
(b) fifty-five ten-thousandths multiplied by the sum of the foundation elementary enrollment, the foundation bilingual enrollment, the foundation junior high/middle school enrollment, the foundation high school enrollment and the foundation vocational enrollment; plus
(c) two hundredths multiplied by the sum of the assumed in-school special education enrollment and the assumed tuitioned-out special education enrollment.
"Foundation custodial staff'', the number of staff allotted within a district's foundation budget in any fiscal year for custodial duties. The foundation custodial staff shall be one-tenth multiplied by the sum of the foundation teaching staff and the foundation support staff.
"Foundation enrollment'', the student enrollment of a district in any fiscal year. The foundation enrollment is defined as the sum of foundation elementary, junior high, senior high, bilingual, and vocational enrollment plus one-half the sum of foundation pre-school and kindergarten enrollment, including students enrolled in the program for the elimination of racial imbalance. By March first of each calendar year, the department shall certify the foundation enrollment for the next fiscal year as the actual enrollment as reported the previous October.
"Foundation extracurricular activity expenses'', the amount allotted within a district's foundation budget for extracurricular activity expenses in any fiscal year. The foundation extracurricular activity expenses shall be the sum of:
(a) twenty-five dollars multiplied by the sum of the foundation elementary enrollment and the foundation bilingual enrollment; plus
(b) thirty-five dollars multiplied by the foundation junior high/middle school enrollment; plus
(c) forty-five dollars multiplied by the sum of the foundation high school enrollment and the foundation vocational enrollment.
"Foundation gap'', the positive difference, if any, between (i) the foundation budget in any fiscal year and (ii) the sum of base aid, school choice reimbursement as defined in section twelve B of chapter seventy-six, federal impact aid, and the larger of (1) the prior year local contribution or (2) the standard of effort for that fiscal year. The foundation gap shall be calculated separately for each municipality's share of each district to which it belongs.
"Foundation health care staff'', the number of staff allotted within a district's foundation budget to perform health care related duties in any fiscal year. The foundation health care staff shall be the sum of:
(a) one thousandths multiplied by the sum of the foundation kindergarten enrollment and the foundation pre-school enrollment; plus
(b) two thousandths multiplied by the sum of the foundation elementary enrollment and the foundation bilingual enrollment; plus
(c) fifteen ten-thousandths multiplied by the sum of the foundation junior high/middle school enrollment, the foundation high school enrollment and the foundation vocational enrollment.
"Foundation inflation index'', in fiscal year 2003, the foundation inflation index shall equal 1.256286153. In fiscal year 2004 and in each fiscal year thereafter, the foundation inflation index shall equal the prior year's foundation inflation index multiplied by the minimum of (a) the ratio of the value of the implicit price deflator for state and local government purchases in the first quarter of the prior fiscal year to its value in the first quarter of the year 2 years prior, and (b) 1.045.
"Foundation miscellaneous expenses'', the amount allotted within a district's foundation budget for miscellaneous activity expenses in any fiscal year. The foundation miscellaneous activity expenses shall be the sum of:
(a) four hundred dollars multiplied by the assumed in-school special education enrollment; plus
(b) seventy-five dollars multiplied by the total foundation enrollment; plus
(c) eleven hundred dollars multiplied by the foundation clerical staff.
"Foundation non-salary expenses'', the sum of foundation athletic expenses, foundation extracurricular activity expenses, foundation utility and ordinary maintenance expenses, foundation benefits, foundation special education tuition, and foundation miscellaneous expenses.
"Foundation payroll'', the amount allotted within a district's foundation budget for the teaching staff, support staff, assistants, principals, clerical staff, health care staff, central office professional staff, and custodial staff in any fiscal year. The foundation payroll shall be the wage adjustment factor multiplied by the sum of:
(a) thirty-eight thousand dollars multiplied by the sum of the foundation teaching staff and the foundation support staff; plus
(b) nine thousand dollars multiplied by the foundation assistants; plus
(c) sixty-two thousand dollars multiplied by the sum of (i) foundation principals, and (ii) one and fifteen-hundredths multiplied by the foundation central office professional staff; plus
(d) eighteen thousand five hundred dollars multiplied by the foundation clerical staff; plus
(e) twenty-five thousand dollars multiplied by the foundation health care staff; plus
(f) twenty-five thousand dollars multiplied by the foundation custodial staff.
"Foundation principals'', the number of principals allotted within a district's foundation budget in any fiscal year. The foundation principals shall be the sum of:
(a) fifteen ten-thousandths multiplied by the sum of the foundation kindergarten enrollment and foundation pre-school enrollment; plus
(b) three thousandths multiplied by the sum of the foundation elementary enrollment and the foundation bilingual enrollment; plus
(c) thirty-five ten-thousandths multiplied by the foundation junior high/middle school enrollment; plus
(d) thirty-five ten-thousandths multiplied by the sum of the foundation high school enrollment and the foundation vocational enrollment.
"Foundation special education tuition'', the amount allotted within a district's foundation budget for special education tuition in any fiscal year. The value shall be the product of thirteen thousand five hundred dollars and the assumed tuitioned-out special education enrollment.
"Foundation support staff'', the number of staff allotted within a district's foundation budget for support duties in any fiscal year. The foundation support staff shall be the sum of:
(a) seven hundred and twenty-five hundred-thousandths multiplied by the sum of the foundation kindergarten enrollment and the foundation pre-school enrollment; plus
(b) one hundred and forty-five ten-thousandths multiplied by the sum of the foundation elementary enrollment and the foundation bilingual enrollment; plus
(c) twenty-five thousandths multiplied by the foundation junior high/middle school enrollment; plus
(d) forty-two ten-thousandths multiplied by the sum of the foundation high school enrollment and the foundation vocational enrollment; plus
(e) seventy-six thousandths multiplied by the assumed in-school special education enrollment.
"Foundation teaching staff'', the number of staff allotted within a district's foundation budget for teaching duties in any fiscal year. The foundation teaching staff, calculated using enrollments as defined in this section, shall be the sum of the following:
(a) the sum of the foundation kindergarten enrollment and the foundation pre-school enrollment divided by forty-four; plus
(b) the foundation elementary enrollment divided by twenty-two; plus
(c) the foundation junior high/middle school enrollment divided by twenty-five; plus
(d) the foundation high school enrollment divided by seventeen; plus
(e) the foundation bilingual enrollment divided by fifteen; plus
(f) the foundation vocational enrollment divided by ten; plus
(g) the assumed in-school special education enrollment divided by eight; plus
(h) three hundredths multiplied by the average number of low-income students attending schools in the district over the preceding two fiscal years.
"Foundation utility and ordinary maintenance expenses'', the amount allotted within a district's foundation budget for utility and ordinary maintenance costs in any fiscal year. The foundation utility and ordinary maintenance expenses shall be three thousand three hundred dollars multiplied by the sum of:
(a) the sum of the foundation teaching staff and the foundation support staff; plus
(b) the foundation vocational enrollment divided by thirty.
"Foundation vocational staff'', the number of teachers, support staff principals, clerical staff, health care staff and custodial staff assigned to a vocational school or program or an agricultural school allotted within a district's foundation budget in any fiscal year.
"General revenue sharing aid'', the amount of assistance from the commonwealth to be received by a city or town in a fiscal year from the following local aid programs: (1) payments in lieu of taxes for state-owned lands distributed pursuant to section seventeen of chapter fifty-eight, (2) equity aid as defined in this section, (3) the distribution to cities and towns of the balance of the State Lottery and Gaming Fund in accordance with the provisions of clause (c) of section thirty-five of chapter ten, and (4) additional assistance, so-called, as distributed pursuant to section eighteen E of chapter fifty-eight.
"Gross overburden amounts'', are as follows: for municipalities with an adjusted property valuation per pupil of equal to or less than ninety-five percent of the statewide average, the gross overburden amount shall be one hundred percent of the standard of effort gap. For municipalities with an adjusted property valuation per pupil greater than ninety-five percent of the state average but less than one hundred and twenty percent of the state average, the gross overburden amount shall be the standard of effort gap multiplied by the positive difference between one and ninety-five one hundredths and the ratio of the municipality's adjusted property valuation per pupil to the amount of the state average adjusted property valuation per pupil. For municipalities with an adjusted property valuation per pupil equal to or greater than one hundred and twenty percent of the state average, the gross overburden amount shall be zero; provided further, that for any municipality in which the average per capita income is below the state average per capita income, the gross overburden amount shall be one hundred percent of the standard of effort gap.
"Gross standard of effort'', for a municipality in fiscal year nineteen hundred and ninety-four shall be ninety-four ten-thousandths times the adjusted property valuation, calculated using the nineteen hundred and ninety-two equalized property valuations as published by the department of revenue. In subsequent fiscal years, the gross standard of effort shall be the gross standard of effort of the previous fiscal year, increased by a percentage equal to the municipal revenue growth factor.
"Local contribution'', the net school spending of a municipality in any fiscal year minus the sum of state school aid and federal impact aid, less equity aid, for that fiscal year as projected by the department of education; provided, however, in any city or town that deferred a portion of its teachers' salaries in the fiscal year ending June thirtieth, nineteen hundred and ninety-three or that had its regional school assessment reduced as a result of a deferral of teachers' salaries in a regional school district in said fiscal year, the local contribution for said fiscal year shall be reduced by the amount of such teachers' salary deferral and reduced regional school assessment, if any. The department shall publish tables allotting each municipality's local contribution in fiscal year nineteen hundred and ninety-three amongst the districts to which the municipality belongs.
"Low-income enrollment'', the number of children attending school in a district regardless of residence or tuition-paying status, who are eligible for free or reduced cost lunches under eligibility guidelines promulgated by the federal government under 42 USC 1758. A low-income child or student is a child who meets these eligibility standards. In determining the total number of low-income students, the department shall use the preceding year's actual number of low-income elementary, middle school, high school, bilingual, and vocational students, and one-half the preceding year's actual number of low-income kindergarten and pre-school students.
"Minimum aid'', the amount of minimum state school aid available to a municipality in any fiscal year, which shall be fifty dollars multiplied by the district foundation enrollment in fiscal year nineteen hundred and ninety-four, and twenty-five dollars multiplied by the district foundation enrollment every year thereafter until fiscal year two thousand and one.
"Minimum required local contribution'', the sum of (1) the preliminary local contribution, and (2) the foundation aid percent multiplied by the standard of effort gap in any fiscal year. This sum shall be reduced by the overburden aid amount, if any, and the excess debt service amount, if any; provided, however, that in no case shall said reduction result in a reduction of net school spending to an amount less than the foundation budget amount. The minimum required local contribution shall be defined separately for each municipality's share of each district to which it belongs.
"Municipal revenue growth factor'', the change in local general revenues calculated by subtracting one from the quotient calculated by dividing the sum of (1) the maximum levy for the fiscal year estimated by multiplying the levy limit of the prior fiscal year by a factor equal to one hundred two and one-half percent plus the average of the percentage increases in the levy limit due to new growth adjustments over the last three available years as certified by the department of revenue or as otherwise estimated by the division of local services of the department of revenue where it appears that a municipality may not be entitled to increase its minimum levy limit by two and one-half percent; provided, however, that if the highest percentage during such three years exceeds the average of the other two years' percentages by more than two percentage points, then the lowest three of the last four years shall be used for such calculation; (2) the amount of general revenue sharing aid for the fiscal year; and (3) other budgeted recurring receipts not including user fees or other charges determined by said division of local services to be associated with the provision of specific municipal services for the prior fiscal year, by the sum of (1) the actual levy limit for the prior fiscal year; (2) the amount of general revenue sharing aid received for the prior fiscal year; and (3) other recurring receipts not including user fees or other charges determined by such division of municipal services to be associated with the provision of specific municipal services budgeted by the municipality for the fiscal year preceding the prior fiscal year, if any; provided, however, that for the purposes of this calculation, the levy limit shall exclude any amounts generated by overrides applicable to any year after the fiscal year ending June thirtieth, nineteen hundred and ninety-three; provided, further, that in the absence of an actual levy limit for the prior fiscal year, the actual levy limit for the prior fiscal year shall be estimated by multiplying the actual levy limit of the fiscal year preceding the prior fiscal year by a factor equal to one hundred two and one-half percent plus the average of the percentage increases in the levy limit due to new growth as specified above; provided, further, that such factor shall not be greater than the factor determined by subtracting one from the quotient calculated by dividing total state school aid for the current fiscal year by total state school aid for the prior fiscal year; and, provided, further, that in making any of the calculations required by this definition, said division of local services may substitute more current information or such other information as would produce a more accurate estimate of the change in a municipality's general local revenues and the department shall use such growth factor to calculate preliminary contribution, minimum contribution and any other factor that directly or indirectly uses the municipal growth factor.
"Net school spending'', the total amount spent for the support of public education, including teacher salary deferrals and tuition payments for children residing in the district who attend a school in another district or other approved facility, determined without regard to whether such amounts are regularly charged to school or non-school accounts by the municipality for accounting purposes; provided, however, that net school spending shall not include any spending for long term debt service, and shall not include spending for school lunches, or student transportation. Net school spending shall also not include tuition revenue or revenue from activity, admission, other charges or any other revenue attributable to public education. Such revenue will be made available to the school district which generated such revenue in addition to any financial resources made available by municipalities or state assistance. The department of education, in consultation with the department of revenue shall promulgate regulations to ensure a uniform method of determining which municipal expenditures are appropriated for the support of public education and which revenues are attributable to public education in accordance with this section. The regulations shall include provisions for resolving disputes which may arise between municipal and school officials.
"Overburden aid'', for each municipality is the gross overburden amount for that municipality multiplied by the foundation aid percent.
"Preliminary local contribution'', the product of (a) the minimum required local contribution of the prior fiscal year, and (b) one plus the municipal revenue growth factor, which product shall be increased by the excess debt service amount of the prior fiscal year if said amount was used to reduce the minimum required local contribution in the prior fiscal year; provided, that said preliminary local contribution shall not be greater than the gross standard of effort amount; provided, further, that for any district in which net school spending is less than the foundation budget amount and the prior year local contribution is greater than the gross standard of effort amount, the preliminary local contribution shall not be less than the fiscal year nineteen hundred and ninety-three local contribution, except that said contribution may be reduced proportionately to any decrease in the total municipal budget; and provided further, that for any municipality in which net school spending is greater than the foundation budget, in no case shall the sum of the preliminary local contribution and the base aid and the minimum aid result in a reduction of net school spending to an amount less than the foundation budget amount. The preliminary local contribution shall be defined separately for each municipality's share of each district to which it belongs.
"Professional development allotment'', the amount allotted within a district's foundation budget for professional development in any fiscal year. The professional development allotment in any year shall be three percent multiplied by the amount allotted in that year in a district's foundation budget for foundation teaching staff payroll and the foundation support staff payroll.
"Standard of effort'', for any year, shall be the lesser of (1) the gross standard of effort for that year and (2) the foundation budget for the year minus the sum of base aid and federal impact aid for that year. The standard of effort for any municipality shall be allotted among the districts to which that municipality belongs.
"Standard of effort gap'', the positive difference in any fiscal year between the standard of effort in the fiscal year and the preliminary local contribution in that fiscal year. The standard of effort gap for a municipality shall be allotted among the districts to which that municipality belongs.
"State overburden obligation'', the sum of the gross overburden amounts for all municipalities.
"State school aid'', all amounts appropriated by the commonwealth under this chapter, chapter seventy-one, and chapter seventy-four, all equal educational opportunity grants, and all per pupil grants included as part of state aid for fiscal year nineteen hundred and ninety-three except as provided in this chapter. It shall not include any state funding for transportation, for school building construction, for the METCO program or for other categorical grants such as school-to-work transitional grants. The department shall publish tables allotting each municipality's state school aid in fiscal year nineteen hundred and ninety-three amongst the school districts to which the municipality belongs. For municipalities where all students attend regional districts all state school aid shall be allocated amongst the regional districts. The aid received on behalf of students tuitioned out to other districts shall be allotted to the municipality or district paying tuition.
"Total foundation staff'', the sum of the foundation teaching staff, foundation support staff, foundation assistants, foundation principals, foundation clerical staff, foundation healthcare staff, foundation central office professional staff, and foundation custodial staff provided that no employee shall be counted as more than one full time equivalent.
"Wage adjustment factor'', an adjusted difference between the average annual wage for all jobs in the labor market area in which a municipality is located and the average annual wage in the commonwealth. Average annual wage figures shall be published annually by the division of employment and training. The wage adjustment factor shall be the sum of one plus a fraction, the numerator of which shall be the product of one-third and the difference resulting from subtracting the average annual wage in the commonwealth from the average annual wage of the community; and the denominator of which shall be the average annual wage in the commonwealth.
For the purposes of this section, the average annual wage of the community shall be the sum of:
(a) eight-tenths multiplied by the average annual wage for all jobs in the labor market area in which the municipality is located; plus
(b) two-tenths multiplied by the average annual wage of the municipality; provided, however, that in any community in which the percent of total foundation enrollment represented by the low-income enrollment is greater than the total percent of low-income students in the state, the wage adjustment factor shall not be less than one.
Chapter 70: Section 2. Definitions
[ Text of section as amended by 2019, 132, Sec. 6 effective February 24, 2020. For text effective until February 24, 2020, see above.]
Section 2. (a) As used in this chapter and in chapters 15, 69 and 71, the following words shall, unless the context clearly requires otherwise, have the following meanings:
"Assumed in-school special education enrollment'', 4 per cent of the total foundation enrollment in a district, not including vocational or preschool enrollment, plus 5 per cent of vocational school enrollment.
"Assumed tuitioned-out special education enrollment'', 1 per cent of the total foundation enrollment in a district, not including vocational or preschool enrollment.
"Base aid'', in a fiscal year, the amount of chapter 70 school aid provided to the district in the prior fiscal year.
"Board'', the board of elementary and secondary education.
"Chapter 70 school aid'', for each district, the greater of: (i) foundation aid; or (ii) the sum of base aid and minimum aid; provided, however, that no nonoperating district shall receive chapter 70 school aid in an amount greater than its foundation budget.
"Combined effort yield'', the sum of: (i) a municipality's equalized property valuation multiplied by the uniform property percentage; and (ii) its municipal income multiplied by the uniform income percentage.
"Commissioner'', the commissioner of elementary and secondary education.
"Department'', the department of elementary and secondary education.
"District'' or "School district'', the school department of a city or town, a regional school district, an independent vocational school or a vocational school or agricultural school operated by a county.
"Effort reduction percentage'', the percentage of excess effort to be reduced in a given fiscal year, as specified annually in the general appropriations act, and applied to each municipality with excess effort in the calculation of the required local contribution.
"English learner'', as defined in section 2 of chapter 71A; provided, however, that for the purpose of determining a district's foundation budget, a district's English learner enrollment shall include the number of English learner students attending school in a district regardless of residence or tuition-paying status plus the number of English learner students that the district is sending to charter schools.
"Equalized property valuation'', the most recent equalized property valuation for a municipality as determined by the department of revenue pursuant to sections 9, 10 and 10C of chapter 58.
"Excess effort'', a municipality's preliminary local contribution minus its target local contribution; provided, however, that "excess effort'' shall not be less than 0.
"Foundation aid'', for each district, the difference between the district's foundation budget and the required local contribution.
"Foundation allotments'', the sum of the foundation category costs for each district; provided, however, that the sum in each foundation category shall be the product of enrollment in each foundation enrollment category that is eligible for the respective foundation category and the per-pupil rate assigned to each foundation category; provided further, that in each year the per-pupil rate for each foundation category, except employee benefits and fixed charges, shall not be less than the prior year's foundation per-pupil rate adjusted by the foundation inflation index; and provided further, that in each year the rate for employee benefits and fixed charges shall not be less than the prior year's rate adjusted by the foundation employee benefits inflation rate.
"Foundation budget'', the sum of the foundation allotments for the following foundation categories: (i) administration; (ii) instructional leadership; (iii) classroom and specialist teachers; (iv) other teaching services; (v) professional development; (vi) instructional materials, equipment and technology; (vii) guidance and psychological services; (viii) pupil services; (ix) operations and maintenance; (x) employee benefits and fixed charges; and (xi) special education tuition.
"Foundation employee benefits inflation rate'', the average annual rate of growth of the average premium of all group insurance commission plans over the 3 prior fiscal years as calculated by the group insurance commission.
"Foundation enrollment'', in a fiscal year, the number of students on October 1 for whom the district is financially responsible, including students attending programs outside of the district for whom the district is required to pay tuition; provided, however, that each student shall be assigned to 1 of the following categories: (i) preschool; (ii) kindergarten, half-time: (iii) kindergarten, full-time; (iv) elementary school; (v) junior high school or middle school; (vi) high school; or (vii) vocational school.
"Foundation increments'', the additional resources provided for the education of students designated as English learners or low-income; provided, however, that the increments shall be constituted by the product of a district's foundation enrollment deemed eligible for such increments and the amounts assigned for each foundation category; provided further, that for low-income students the amount of the foundation increment shall be determined by the low-income group into which each district is assigned; provided further, that districts shall be assigned low-income groups based on the share of low-income students in the district; and provided further, that the share of low-income students in the district shall be the quotient of: (i) the district's low-income enrollment as calculated under this section; and (ii) the sum of the number of students attending school in a district, regardless of residence and tuition paying status, and the number of students that the district is sending to charter schools.
"Foundation inflation index'', the lesser of: (i) the ratio of the value of the implicit price deflator for state and local government purchases in the third quarter of the prior fiscal year to its value in the third quarter of the fiscal year 2 years prior; and (ii) 1.045.
"General revenue sharing aid'', the amount of assistance from the commonwealth to a city or town in a fiscal year from: (i) payments in lieu of taxes for state-owned land; and (ii) amounts appropriated in items 1233-2350 and 1233-2400 in the annual general appropriations act.
"Low-income'', a designation for those students whose family's income is not more than 185 per cent of the federal poverty guidelines used to determine financial eligibility for certain federal programs; provided, however, that if a consistent and accurate method for determining the income eligibility of all students is not available for all districts, the department shall develop a method to estimate the share of low-income students in each district; provided further, that the department shall submit a report to the clerks of the house of representatives and the senate, the chairs of the joint committee on education and the chairs of the house and senate committees on ways and means on any estimation method not later than November 1 prior to the implementation of any new estimation method in the following fiscal year; and provided further, that for the purpose of determining a district's foundation budget, a district's low-income enrollment shall include the number of low-income students attending school in a district regardless of residence or tuition-paying status plus the number of low-income students that the district is sending to charter schools.
"Minimum aid'', the greater of: (i) a district's minimum aid adjustment less its base aid; and (ii) a district's foundation enrollment multiplied by a per-pupil dollar amount specified annually in the general appropriations act, but which shall not be less than $30, which shall be the minimum aid increment above base aid.
"Minimum aid adjustment'', in each fiscal year, the sum of: (i) the greater of a district's foundation aid or base aid calculated using the base and incremental rates set forth in section 3 of chapter 41 of the acts of 2019 using the foundation inflation index as defined in section 2 of chapter 70; and (ii) a district's foundation enrollment multiplied by $30.
"Municipal income'', the most recent aggregate personal income for a municipality as determined by the department of revenue.
"Municipal revenue growth factor'', the change in local general revenues calculated by subtracting 1 from the quotient calculated by dividing the sum of: (i) the maximum levy for the fiscal year estimated by multiplying the levy limit of the prior fiscal year by a factor equal to 102.5 per cent plus the average of the percentage increases in the levy limit due to new growth adjustments over the last 3 available years as certified by the department of revenue or as otherwise estimated by the division of local services within the department of revenue where it appears that a municipality may not be entitled to increase its minimum levy limit by 2.5 per cent; provided, however, that if the highest percentage during such 3-year period exceeds the average of the other 2 years' percentages by more than 2 percentage points, then the lowest 3 of the last 4 years shall be used for such calculation; (ii) the amount of general revenue-sharing aid for the fiscal year; and (iii) other budgeted recurring receipts, not including user fees or other charges determined by the division of local services to be associated with the provision of specific municipal services for the prior fiscal year, by the sum of: (A) the actual levy limit for the prior fiscal year; (B) the amount of general revenue-sharing aid received for the prior fiscal year; and (C) other recurring receipts, not including user fees or other charges determined by the division of local services to be associated with the provision of specific municipal services budgeted by the municipality for the fiscal year preceding the prior fiscal year, if any; provided further, that for the purposes of this calculation, the levy limit shall exclude any amounts generated by overrides applicable to any year after the fiscal year ending June 30, 1993; provided further, that in the absence of an actual levy limit for the prior fiscal year, the actual levy limit for the prior fiscal year shall be estimated by multiplying the actual levy limit of the fiscal year preceding the prior fiscal year by a factor equal to 102.5 per cent plus the average of the percentage increases in the levy limit due to new growth as specified above; provided further, that such factor shall not be greater than the factor determined by subtracting 1 from the quotient calculated by dividing total state school aid for the current fiscal year by total state school aid for the prior fiscal year; and provided further, that in making any calculations required by this definition, the division of local services may substitute more current information or such other information as would produce a more accurate estimate of the change in a municipality's general local revenues and the department shall use such growth factor to calculate preliminary contribution, minimum contribution and any other factor that directly or indirectly uses the municipal growth factor.
"Net school spending'', the total amount spent for the support of public education, including tuition payments for children residing in the district who attend a school in another district or other approved facility, including a charter school, determined without regard to whether such amounts are regularly charged to school or nonschool accounts by the municipality for accounting purposes; provided, however, that "net school spending'' shall not include any spending for school construction, long-term debt service, school meals, transportation of students to and from their homes or adult and community learning programs; provided further, that "net school spending'' shall not include expenditures from grants, other state aid programs, tuition revenue or revenue from activities, admissions and other charges or any other revenue attributable to public education; provided further, that such revenue shall be made available to the school district that generated the revenue in addition to any financial resources made available by municipalities or from state assistance; provided further, that the department, in consultation with the department of revenue, shall promulgate regulations to ensure a uniform method of determining which municipal expenditures are appropriated for the support of public education and which revenues are attributable to public education in accordance with this chapter; and provided further, that the regulations shall include provisions for resolving disputes that may arise between municipal and school officials.
"Preliminary local contribution'', the product of: (i) a municipality's required local contribution for the prior fiscal year; and (ii) the sum of the municipality's municipal revenue growth factor and 1.
"Required local contribution'', a municipality's preliminary local contribution; provided, however, that if the preliminary local contribution is greater than the target local contribution, then the preliminary local contribution shall be reduced by the product of its excess effort and the effort reduction percentage; provided further, that if the preliminary local contribution as a percentage of the foundation budget is between 2.5 and 7.5 percentage points below the target local share, then the preliminary local contribution shall be increased by 1 per cent; provided further, that if the preliminary local contribution as a percentage of the foundation budget is more than 7.5 percentage points below the target local share, then the preliminary local contribution shall be increased by 2 per cent; provided further, that in a municipality with a combined effort yield equal to or greater than 175 per cent of its foundation budget, the required local contribution shall not be less than 82.5 per cent of the municipality's foundation budget; and provided further, that the commissioner shall allocate each municipality's required local contribution among the districts to which the municipality belongs and such allocation shall be in proportion to each district's share of the municipality's foundation budget.
"Required net school spending'', the sum of a district's chapter 70 school aid and its required local contribution.
"Target local contribution'', the lesser of: (i) a municipality's combined effort yield; or (ii) 82.5 per cent of its total foundation budget.
"Target local share'', the percentage of each municipality's foundation budget represented by its target local contribution.
"Total state target local contribution'', the per cent of the total state foundation budget which is to be funded through required local contributions, provided that the per cent shall be specified annually in the general appropriations act but shall not exceed 59 per cent.
"Uniform income percentage'', a factor calculated annually by the commissioner so that the total statewide municipal income multiplied by the uniform income percentage is equal to half of the total state target local contribution.
"Uniform property percentage'', a factor calculated annually by the commissioner so that the total state equalized property valuation multiplied by the uniform property percentage is equal to half of the total state target local contribution.
"Wage adjustment factor'', an adjusted difference between the average annual wage for all jobs in the labor market area in which a municipality is located and the average annual wage in the commonwealth; provided, however, that average annual wage figures shall be published annually by the division of employment and training; provided further, that the wage adjustment factor shall be the sum of: (i) 1; and (ii) a fraction, the numerator of which shall be the product of: (A) 1/3 and the difference resulting from subtracting the average annual wage in the commonwealth from the average annual wage of the community; and (B) the denominator of which shall be the average annual wage in the commonwealth; provided further, that the average annual wage of the community shall be the sum of: (a) 0.8 multiplied by the average annual wage for all jobs in the labor market area in which the municipality is located; and (b) 0.2 multiplied by the average annual wage of the municipality; and provided further, that the "wage adjustment factor'' shall not be less than 1.
(b) The board shall promulgate regulations as needed to implement this section. The board shall submit any regulations to the house and senate committees on ways and means and the joint committee on education not less than 60 days before adoption. The joint committee on education shall review and may comment on these regulations during that time period.