School Funding Basics:Required Local Contribution

& Target Local Share MURSD Regional School CommitteeJanuary 27, 2014

Target Local Contribution

Why? Staring in 2007, the State established a new funding formula… one where a greater burden for financing PK-12 education would be on municipalities

Target Local Contribution: establishes a goal of how much each municipality should contribute to PK-12 education, based upon two factors-

Aggregate property values Aggregate personal income levels> MRGF

State & Local TargetsOverall goal in MA: municipalities cover

59% of foundation budget and state aid should cover 41%

But variations exist based upon wealth of community…. Ex- low of Lawrence (12.5%) to high of 82.5% (131 communities, the cap)Town Target Contribution

Douglas 48.36 %

Grafton 66.02 %

Hopedale 52.11 %

Hopkinton 82.50 %

Milford 51.41 %

Northbridge 46.62 %

Mendon & Upton Target Contributions

Town Target Contribution

Mendon 66.05 %Upton 62.21 %

The Present Gap to Target Share

Town Target Contribution

Actual FY14 Contrib

% Off

Mendon 66.05 % 57.26 %

8.79 %

Upton 62.21 % 53.39 %

8.82 %

• 72 municipalities across the state (29%) are BELOW their target share. Mendon & Upton are two of those communities

(State Avg MRGF: 3.76%)

The Forced Migration to Target Share

Town Target Contribution

Actual FY14 Contrib

% Off MRGFFY15

FY15Target

Mendon 66.05 % 57.26 %

8.79 % 4.16 % 58.36 %

Upton 62.21 % 53.39 %

8.82 % 3.57 % 54.42 %

• If a community is 2.5 - 7.5% below its target, then an increment of 2% is added to the minimum local target %

(State Avg MRGF: 3.76%)

Some Important Caveats

Realize that these percentages DO NOT correspond with our assessments based upon student enrollment (For FY15- 43.51% Mendon, 56.49% Upton)

Big Driver: Increased BVT Assessment to Upton ($236,593 for 25 additional students) & Mendon ($91,074 for 6 additional students)

• Hence, for FY15, Mendon’s share of the Minimum Local Contribution for the MURSD is affected more than Upton’s

Some Important Caveats

• More LOCAL EFFORT will be required to get to Target Share & Required Local Contribution for FY16 and beyond

For More Info on School Budget Basics

Go to the MURSD Superintendent’s Blog: www.mursd.blogspot.com