Budget Amendment ID: FY2024-S3-700

EDU 700

Study Commission on minimum aid school districts

Messrs. Tarr, Finegold and O'Connor moved that the proposed new text be amended by inserting after SECTION _ the following section:-

"SECTION _.(a) There shall be a special commission to study and make recommendations concerning the long-term fiscal health of non-rural school districts that are facing or may face declining student enrollment and are receiving the minimum chapter 70 per pupil aid.

The commission shall consist of: 1 member who shall be appointed by the president of the senate, who shall serve as co-chair; 1 member who shall be appointed by the speaker of the house of representatives, who shall serve as co-chair; 1 member who shall be appointed by the minority leader of the senate; 1 member who shall be appointed by the minority leader of the house of representatives; the deputy commissioner of the division of local services within the department of revenue or a designee; the secretary of education or a designee; the commissioner of elementary and secondary education or a designee; and 9 members appointed by the governor, 1 of whom shall be a representative of the Massachusetts Association of Regional Schools, Inc., 1 of whom shall be a representative of the Massachusetts Association of School Committees, Inc., 1 of whom shall be a representative of the Massachusetts Teachers Association, 1 of whom shall be a representative of the American Federation of Teachers, Massachusetts; 1 of whom shall be a representative of the Massachusetts Association of School Business Officials, Inc., 1 of whom shall be a representative of the Massachusetts Association of School Superintendents, Inc., 1 of whom shall be representatives of the Massachusetts Municipal Association, 1 of whom shall be a municipal official with responsibility for municipal budgeting, and 1 of whom shall be a researcher from a public institution of higher learning with expertise in demographics and economics. Members shall not receive compensation for their services but may receive reimbursement for reasonable expenses incurred in carrying out their responsibilities as members of the commission. The commissioner of elementary and secondary education shall furnish reasonable staff and other support for the work of the commission.

(b)  In making its recommendations, the commission shall consider: (i) long-term economic, demographic and student enrollment trends and projections of school districts that are experiencing population decline and have received minimum chapter 70 “per pupil” aid for at least the last 3 years; (ii) long-term fiscal trends in school districts experiencing declining student enrollment; (iii) an analysis of the fiscal health of regional school districts and the impact of regionalization on each contributing municipality, especially in low-income and middle-income areas, including funding impacts on each contributing municipality; (iv) the impact on school districts of meeting increased costs while receiving only minimum chapter 70 “per pupil” aid; (v) the sustainability of providing high quality education in districts receiving minimum “per pupil” aid; (vi) the impact on municipal finances and services on communities receiving minimum per pupil chapter 70 aid; and (vii) best policies and practices in other states.

The commission shall make recommendations for: (i) effectively addressing any adverse impacts identified in subsection (b), including but not limited to measures such as: supplemental state educational aid, modifications to the aid mechanisms contained in chapter 70, including formula adjustments, and other forms of assistance or cost saving measures; (ii) establishing and including a low and declining student enrollment factor within the foundation budget; (iii) expanding the use of technology to deliver instruction; (iv) enabling operating efficiencies; (v) exploring the use of shared services; (vi) optimizing schools and school districts; (vii) encouraging improvement of fiscal health and educational outcomes; and (viii) characterizing the structural conflict in the current chapter 70 funding formula between declining enrollment and increasing costs for school districts, and identifying means to resolve this conflict. The commission shall include with its recommendations any cost estimates and feasibility associated with the commission’s recommendations.

(c)  The commission shall hold not less than 5 public meetings and may hold additional hearings and other forums that it considers necessary. The commission shall file its report and recommendations with the clerks of the senate and the house of representatives, the chairs of the joint committee on education and the rural policy advisory commission not later than March 1, 2024.