Budget Amendment ID: FY2027-S4-1146

LOC 1146

School Finance Review Commission

Mrs. Dooner moved that the proposed new text be amended by inserting after section _ the following section:-

"SECTION 1. Notwithstanding any general or special law to the contrary, there shall be a special commission to study and provide recommendations on improving the structure, sustainability, and cost-effectiveness of the chapter 70 school funding formula. The commission shall examine the current methods for calculating foundation budgets, required local contributions, and the distribution of state aid to identify inefficiencies, cost drivers, and structural imbalances. The study shall include, but not be limited to: (1) reviewing the calculation of the foundation budget, including assumptions related to enrollment, special education, employee benefits, and low-income students; (2) evaluating the impact of declining enrollment on school district finances and state aid distribution; (3) assessing the interaction between required local contributions and municipal fiscal capacity, including the constraints of Proposition 2½; (4) identifying factors contributing to rapid cost growth in certain foundation budget categories; (5) comparing Massachusetts’ school funding model to those of other states; and (6) recommending policy or statutory changes to improve long-term fiscal sustainability and transparency in the distribution of education funding.

SECTION 2. The commission shall consist of the secretary of education or a designee, who shall serve as chair; the commissioner of elementary and secondary education or a designee; the state auditor or a designee; the house chair of the joint committee on education or a designee; the senate chair of the joint committee on education or a designee; the house minority leader or a designee; the senate minority leader or a designee; one representative from the Massachusetts Association of School Committees; one representative from the Massachusetts Association of School Superintendents; one representative from the Massachusetts Municipal Association; and two public members with expertise in education finance or municipal finance, appointed by the governor.

The commission shall hold not fewer than four public hearings across different regions of the commonwealth to gather input from stakeholders and the public.

SECTION 3. The commission shall submit its findings, along with any legislative or regulatory recommendations, to the governor, the clerk of the house of representatives, the clerk of the senate, the joint committee on education, and the house and senate committees on ways and means not later than December 31, 2027."