Section 3 Local Aid Distribution

Additional local aid information based on the Governor's FY 2025 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, 2025 the distribution of unrestricted general government aid 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 $1,308,713,668 and shall be apportioned to cities and towns in accordance with this section.

For fiscal year 2025 the total amounts to be distributed and paid to each city, town and regional school district from item 7061-0008 of section 2 and item 1596-2438 of section 2F, shall be as set forth in the following lists. If there is conflict between the language of this section and the distribution listed below, the distribution below shall control. The specified amounts distributed from said item 7061-0008 of said section 2 and said item 1596-2438 of section 2F shall be deemed in full satisfaction of the amounts due under chapter 70 of the General Laws.

For fiscal year 2025, a district's school aid shall be calculated according to the provisions of said chapter 70. The foundation budget category of "low-income enrollment" for the purpose of calculating foundation enrollment shall be determined by financial eligibility for certain federal programs, as defined by the provisions of section 2 of said chapter 70, and including a number of students identified and approved as low income through the supplemental claiming system established and posted by the department for that purpose, as well as students identified and approved as homeless for purposes of calculating the McKinney-Vento homelessness grant program administered by the department, consistent with the conditions provided for in said section 2. Provided further, that the assumed special education enrollment percentage for vocational school students shall be set at 4.93 per cent and the assumed special education enrollment percentage for non-vocational school students shall be set at 3.93 per cent.

The per-pupil rates for the employee benefits and fixed charges allotments shall be adjusted by the foundation employee benefits inflation rate and the per-pupil rates for all other foundation allotments shall be adjusted by the foundation inflation index. Foundation increments shall be the additional resources provided for the education of students designated as English learners or low-income; provided, however, 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. Foundation budget rates for employee benefits and fixed charges, guidance and psychological services, special education out-of-district tuition, English learners and low-income students shall be increased by four-sixths of the gap between the rates used in fiscal year 2021 and the rates established in tables 1 and 2 of section 3 of said chapter 70, consistent with adjustments prescribed in said section 3 and set at the rates identified in the table below. Required local contributions shall be calculated pursuant to said chapter 70; provided, that municipal revenue growth factors shall be calculated in a manner consistent with calculations made in fiscal year 2024; provided further, that the total statewide target local contribution shall be 59 percent and the effort reduction percentage shall be 100 percent; and provided further, that the minimum aid per pupil dollar amount shall be $104.

Chapter 70 aid for fiscal year 2025 shall be the greater of: (i) foundation aid, or (ii) the sum of base aid and minimum aid. No non-operating district shall receive chapter 70 aid in an amount greater than the district's foundation budget.

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, however, 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 independent 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.