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