Thursday, January 28, 2010

FY2011 Local Aid Proposals

From MA Dept of Revenue

The FY2011 local aid estimates based on Governor Deval Patrick’s budget proposal have been posted to the Division of Local Services’ web site at the link below:

http://www.mass.gov/?pageID=dorsubtopic&L=5&L0=Home&L1=Local+Officials&L2=Municipal+Data+and+Financial+Management&L3=Cherry+Sheets&L4=FY2011+Local+Aid+Proposals&sid=Ador

The Governor's FY2011 budget proposal for full funding of Chapter 70 at $4.048 billion replaces the federal stimulus dollars used in FY2010 with state General Fund dollars for FY2011. To compare the level of FY2011 Chapter 70 with FY2010 Chapter 70 it is important to consider these funds. The FY2010 state budget included in outside section 3 “Potential Allocation of Federal Funds from the ARRA State Fiscal Stabilization Fund.” Budget language in section 3 indicated that these funds “…shall not appear on the cherry sheet produced by department of revenue.” In preparing the local aid estimates for FY2011 a line has been added under Chapter 70 entitled “SFSF to Maintain Foundation Spending” and when added to the FY2010 Chapter 70 provides an accurate comparison of the funding level between FY2010 and FY2011.

Although the FY2011 total level of funding for state-owned land is the same as the FY2010 level, local officials should be aware that these estimates are based on the recent revaluation of property eligible for reimbursement under the state-owned land program. In many cases, there are significant changes from the FY2010 estimates.

Please be advised that these estimates are based on the appropriation levels appearing in the Governor’s FY2011 budget proposal (House 2) and may change as the legislative process unfolds and proposed appropriation levels change.

Please note that Charter School and School Choice assessments may change significantly when updated to reflect spring enrollment data and final tuition rates.

The Department of Elementary and Secondary Education (ESE) has published the Chapter 70 aid calculations, minimum contributions and net school spending requirements on the Office of School Finance web site at:

http://finance1.doe.mass.edu/chapter70/chapter_11_p.html

To review additional information about how the estimates were determined and what may cause them to change in the future, click on the link at the bottom for an index of the FY2011 programs and links to individual explanations.

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