The governor’s FY15 budget is disappointing

Before you read on, please think about the amount you need to increase your school budget to maintain level services. Assume a steady enrollment, no new expenditures, just enough to do next year exactly what you are doing this year.

Chances are the number is somewhat north of 1.32%

Sadly, this is the inflation rate built into the FY15 foundation budget under the governor’s proposal released this morning. The foundation budget, the amount defined under education reform as the minimum funding required to provide an adequate education, is a key factor in determining Chapter 70 aid.
After the state calculates the foundation budget, it calculates the amount a municipality can afford to spend based on a community’s wealth, which becomes the minimum local contribution. The state is obliged to contribute the difference between the minimum local contribution and the foundation budget, which is defined as Chapter 70 aid.
This is an oversimplified description, as there are some other calculations that govern the minimum local contribution, but it describes the system accurately enough to engage in a conversation about statewide trends.
Compared to FY 2014, the FY 2015 budget is based on:
  •  A 0.34% increase in statewide enrollment, from 937,604 to 940,831.
  • A 1.67% increase in the statewide foundation budget, from $9.704 billion to $9.866 billion.
  • A 1.32% increase in the statewide per pupil foundation budget, from $10,350 to $10,486
  • A 1.20% increase in the statewide minimum local contribution, from $5.748 billion to $5.818 billion.
  • A 0.86% increase in the statewide per pupil minimum local contribution, from $6,131 to $6,183..
  • A 2.30% increase in the statewide Chapter 70 aid, from $4.301 billion to $4.400 billion.
  • A 1.95% increase in the statewide per pupil Chapter 70 aid, from $4,587 to $4.677.
We have been raising fees, raising local property taxes, and cutting services since the inception of education reform because the foundation budget has not risen proportionate to the increased costs of providing an adequate public education. This year’s paltry proposed 1.32% increase in the per pupil foundation is just another year that Massachusetts public school students will lose ground.
What’s the incentive for the state to under-inflate the foundation budget? Let’s assume the local contribution does not increase (because it is capped), which means that a larger increase in the foundation budget would need to be funded through Chapter 70 aid. A conservative 2.5% increase in the per pupil foundation budget, along with no increase in the minimum local contribution, would require a 4.62% increase in the Chapter 70 line item. Instead of a $90 increase in per pupil Chapter 70 aid, it would require a $212 increase in per-pupil aid, and it would cost the state an additional $52.3 million over the governor’s proposal.
We haven’t even talked about special education, or the increased need for technology that wasn’t anticipated when the foundation budget was devised in 1993. But there are other line items that fund special education and needy students. How are these line items funded in the governor’s budget?
  • Regional School Transportation: $51,521,000 (level funded)
  • Non-Resident Pupil Transportation: $3,000,000 funding zeroed out in FY15.
  • Homeless Student Transportation: $7,350,000 (level funded)
  • Charter School Reimbursement: $75,000,000 (level funded)
  • Circuit Breaker: FY 2014: $252,489,224. FY 2015: $252,513,276. This is a $24,052 (0.01%) increase.
  • METCO: $18,642,582 (level funded)
Don’t think the municipal side of the budget will have any spare change for the schools. Unrestricted General Government aid for FY 2015: $920,230,293 is level funded.
All is not bleak in the education budget.
  • Innovation Schools get a 360% increase, from $1,000,000 to $4,604,123.
  • The combined spending for the Department of Elementary and Secondary Education and the Executive Office of Education increases by 2.87% from $15,226,375 to $15,663,792.
  • Extended Learning Time Grants get a 28% increase, from $14,168,030 to $18,168,067
Look on the bright side. After all the cuts precipitated by the paltry Chapter 70 increase and all the other level funded line items, you can get extra money to provide an increased quantity of diminished product.
Time to call our members of the Great and General Court.
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