Chapter 70 Amendments

SECTION 86.   Chapter 70 of the General Laws, as so appearing, is hereby amended by striking section 2 and inserting in place thereof, the following section:-

Section 2. As used in this chapter and in chapters 15, 69 and 71, the following words shall, unless the context clearly requires otherwise, have the following meanings:-
          "Adjusted equalized property valuation", a municipality's non-residential equalized property valuation plus the product of its residential equalized property valuation and its relative median income.
          "Adjusted foundation budget", the foundation budget plus the base pupil allotment multiplied by the sum of the choice enrollment adjustment and the charter enrollment adjustment
          "Base local effort", In fiscal year 2004, the base local effort shall equal the fiscal year 2003 preliminary local contribution multiplied by the sum of one plus the municipal revenue growth factor. Beginning in fiscal year 2005, the base local effort shall equal the prior year's final local effort multiplied by the sum of one plus the municipal revenue growth factor.
          "Base pupil allotment", in fiscal year 2004, $5,500 per student. In fiscal year 2005 and beyond, the prior year's base per pupil allotment adjusted by inflation as determined by the board of education.
          "Chapter 70 aid", the positive difference, if any, between a municipality's adjusted foundation budget and its final local effort; provided that no municipality's chapter 70 aid shall be less than 12 per cent of its adjusted foundation budget.
          "Enrollment categories", the number of students for whom a municipality is financially responsible shall be placed in one or more of the following categories as applicable:
(a) "Assumed special education enrollment", 8.25 per cent of the sum of the standard enrollment and the vocational enrollment.
(b) "Charter enrollment adjustment", the change in the number of students from a municipality enrolled in a charter school during the prior three years, divided by three, provided that the charter enrollment adjustment is not less than zero.
(c) "Choice enrollment adjustment", the change in the number of students from a municipality enrolled in a choice program during the prior three years, divided by three, provided that the choice enrollment adjustment is not less than zero.
(d) "English learner enrollment'', the number of students classified as an English learner.
(e) "Low-income enrollment", the number of a municipality's students who are eligible for free or reduced cost lunches under eligibility guidelines promulgated by the federal government under 42 USC 1758.
(f) "Standard enrollment", the number of students enrolled in full time programs from kindergarten to grade 12 that are not enrolled at a vocational school, plus one half the number of students enrolled in half day kindergarten or preschool.
(g) "Vocational enrollment", the number of students enrolled at a vocational school.
          "Final local effort", if the base local effort is less than the local effort standard, the final local effort shall equal the base local effort plus 25 per cent of the difference between the local effort standard and the base local effort. If the base local effort is greater than the local effort standard, the final local effort shall equal the base local effort minus 20 per cent of the difference between the local effort standard and the base local effort. In no case shall the final local effort exceed 88 per cent of a municipality's adjusted foundation budget.
          "Foundation budget", the product of the base pupil allotment and the sum of (A) the standard enrollment, (B) 0.33 times the English learner enrollment, (C) 0.5 times the low-income enrollment, and (D) 1.7 times the vocational enrollment; plus the assumed special education enrollment multiplied by twice the base pupil allotment.
"General revenue sharing aid", the amount of assistance from the commonwealth to be received by a municipality in a fiscal year from the following local aid programs: (1) payments in lieu of taxes for state-owned lands distributed pursuant to section 13A of chapter 58, (2) the distribution to cities and towns of the balance of the state lottery fund in accordance with the provisions of clause (c) of section 35 of chapter 10.
          "Local effort standard", the adjusted equalized property value multiplied by 0.006.
          "Municipal revenue growth factor", the change in local general revenues calculated by subtracting one from the quotient calculated by dividing the sum of (1) the maximum levy for the fiscal year estimated by multiplying the levy limit of the prior fiscal year by a factor equal to 102.5 per cent plus the average of the percentage increases in the levy limit due to new growth adjustments over the last three available years as certified by the department of revenue or as otherwise estimated by the division of local services where it appears that a municipality may not be entitled to increase its minimum levy limit by 2.5 per cent; provided, however, that if the highest percentage during such three years exceeds the average of the other two years' percentages by more than 2 percentage points, then the lowest three of the last four years shall be used for such calculation; (2) the amount of general revenue sharing aid for the fiscal year; and (3) other budgeted recurring receipts not including user fees or other charges determined by said division of local services to be associated with the provision of specific municipal services for the prior fiscal year, by the sum of (1) the actual levy limit for the prior fiscal year; (2) the amount of general revenue sharing aid received for the prior fiscal year; and (3) other recurring receipts not including user fees or other charges determined by such division of local services to be associated with the provision of specific municipal services budgeted by the municipality for the fiscal year preceding the prior fiscal year, if any; provided, however, that for the purposes of this calculation, the levy limit shall exclude any amounts generated by overrides applicable to any year after the fiscal year ending June 30, 1993; provided, further, that in the absence of an actual levy limit for the prior fiscal year, the actual levy limit for the prior fiscal year shall be estimated by multiplying the actual levy limit of the fiscal year preceding the prior fiscal year by a factor equal to 102.5 per cent plus the average of the percentage increases in the levy limit due to new growth as specified above; and provided further, that in making any of the calculations required by this definition, said division of local services may substitute more current information or such other information as would produce a more accurate estimate of the change in a municipality's general local revenues and the department shall use such growth factor to calculate the base local effort, and any other factor that directly or indirectly uses the municipal growth factor.
          "Relative median income", a municipality's median individual income divided by statewide median individual income, both as reported by the Department of Revenue, averaged over the three most recent years for which data is available.
          "Net school spending", the total amount spent for the support of public education, including teacher salary deferrals and tuition payments for children residing in the district who attend a school in another district or other approved facility, determined without regard to whether such amounts are regularly charged to school or non-school accounts by the municipality for accounting purposes; provided, however, that net school spending shall not include any spending for long term debt service, and shall not include spending for school lunches, or student transportation. Net school spending shall also not include tuition revenue or revenue from activity, admission, other charges or any other revenue attributable to public education. Such revenue will be made available to the school district which generated such revenue in addition to any financial resources made available by municipalities or state assistance. The department of education, in consultation with the department of revenue shall promulgate regulations to ensure a uniform method of determining which municipal expenditures are appropriated for the support of public education and which revenues are attributable to public education in accordance with this section. The regulations shall include provisions for resolving disputes which may arise between municipal and school officials.