Section 3 Local Aid Distribution
Additional local aid information based on the Governor's FY 2021 Budget for individual cities and towns is available at "https://dlsgateway.dor.state.ma.us/reports/rdPage.aspx?rdReport=CherrySheets.CSbyProgMunis.MuniBudgFinal"
SECTION 3. Notwithstanding any general or special law to the contrary, for the fiscal year ending June 30, 2021 the distribution to cities and towns of the balance of the State Lottery and Gaming Fund, as paid from the General Fund in accordance with clause (c) of the second paragraph of section 35 of chapter 10 of the General Laws, and additional funds from the General Fund and the Gaming Local Aid Fund, shall be $1,128,617,436 and shall be apportioned to cities and towns in accordance with this section.
Notwithstanding any general or special law to the contrary, on or after December 15, 2020, the secretary of administration and finance may substitute federal funds held in the Massachusetts Coronavirus Relief Fund, established by section 98 of chapter 124 of the acts of 2020, for funds distributed to cities and towns as unrestricted general government aid pursuant to this section, and reduce spending from the General Fund authorized in item 1233-2350 of section 2 of this act accordingly. The substitution of federal funds shall be done to maximize the appropriate use of funds held in the Massachusetts Coronavirus Relief Fund prior to December 30, 2020 and in a manner that prioritizes the timely expenditure of funds appropriated in section 2A of chapter 124 of the acts of 2020. The secretary of administration and finance may require municipalities to cooperate for the purpose of federal compliance.
Notwithstanding section 2 of chapter 70 of the General Laws, as amended by Chapter 132 of the Acts of 2019, or any other general or special law to the contrary, except for section 12B of chapter 76 and section 89 of chapter 71 of the General Laws, for fiscal year 2021 the total amounts to be distributed and paid to each city and town from item 7061-0008 of section 2 shall be as set forth in the following lists. The specified amounts distributed from said item 7061-0008 of said section 2 shall be deemed in full satisfaction of the amounts due under chapter 70 of the General Laws.
For fiscal year 2021, the foundation budget category of "low-income enrollment" for the purpose of calculating foundation enrollment shall be the number of students identified as economically disadvantaged by qualifying as a match in the commonwealth's direct certification system, as maintained in the executive office of health and human services virtual gateway system: supplemental nutrition assistance program (SNAP), temporary assistance for needy families (TANF), Medicaid (MassHealth) and foster care. Notwithstanding the provisions of section 3 of chapter 70 of the General Laws, as so amended, foundation budget rates shall be those set in chapter 41 of the acts of 2019, inflated by the "foundation inflation index" as calculated and applied for the fiscal year 2020 foundation budget. The target local share shall be calculated using the same methodology used in fiscal year 2020. Preliminary local contribution shall be the municipality's fiscal year 2020 minimum required local contribution, increased or decreased by the municipal revenue growth factor used in the Governor's House 2 budget submission for fiscal year 2021; provided, that if a municipality's preliminary local contribution as a percentage of its foundation budget is more than 2.5 percentage points lower than the target local share, the preliminary contribution shall be recalculated using the municipality's revenue growth factor plus 1 percentage point; provided further, if a municipality's preliminary contribution as a percentage of its foundation budget is more than 7.5 percentage points lower than the target local share, the preliminary contribution shall be recalculated using the municipality's revenue growth factor plus 2 percentage points; provided further, that if a municipality's combined effort yield is greater than 175% of its foundation budget, then the minimum required local contribution for fiscal year 2021 shall be the target contribution for that municipality in fiscal year 2021. Minimum required local contribution for fiscal year 2021 shall be, for any municipality with a fiscal year 2021 preliminary contribution greater than its fiscal year 2021 target contribution, the preliminary local contribution reduced by 100 per cent of the gap between the preliminary local contribution and the target local contribution. No minimum required local contribution shall be greater than 90 per cent of the district's foundation budget amount. Required local contribution shall be allocated among the districts to which a municipality belongs in direct proportion to the foundation budgets for the municipality's pupils at each of those districts. For fiscal year 2021, the "foundation aid increment" shall be the difference between: (i) the positive difference between a district's foundation budget and its required district contribution; and (ii) prior year aid. There shall be no "minimum aid increment" in fiscal year 2021.
Chapter 70 aid for fiscal year 2021 shall be the sum of prior year aid plus the foundation aid increment, if any. No non-operating district shall receive chapter 70 aid in an amount greater than the district's foundation budget.
If there is a conflict between the language of this section and the distribution listed below, the distribution below shall control.
The department of elementary and secondary education shall not consider health care costs for retired teachers to be part of net school spending for any district in which such costs were not considered part of net school spending in fiscal year 1994 and for any district that has not accepted the provisions of section 260 of chapter 165 of the acts of 2014; provided, that any district for whom such costs are not so considered shall have included as part of net school spending an amount equal to the increase in the foundation budget for the district associated with health care costs of retired teachers.
No payments to cities, towns or counties maintaining an agricultural school under this section shall be made after November 30 of the fiscal year until the commissioner of revenue certifies acceptance of the prior fiscal year's annual financial reports submitted under section 43 of chapter 44 of the General Laws. Advance payments shall be made for some or all of periodic local reimbursement or assistance programs to any city, town, regional school district, or agricultural school that demonstrates an emergency cash shortfall, as certified by the commissioner of revenue and approved by the secretary of administration and finance, under guidelines established by the secretary.