SECTION 3.  Notwithstanding any general or special law to the contrary, for the fiscal year ending June 30, 2008 the distribution to cities and towns of the balance of the State Lottery Fund, as paid by the treasurer from the General Fund in accordance with clause (c) of the second paragraph of section 35 of chapter 10 of the General Laws, shall be $935,028,283 and shall be apportioned to the cities and towns in accordance with this section.

                Notwithstanding any general or special law to the contrary, the total amounts to be distributed and paid to each city and town from item 0611-5500 of section 2 shall be as set forth in the following lists.   The amounts to be distributed from said item 0611-5500 of said section 2 shall be in full satisfaction of the amounts due under section 37 of chapter 21 of the General Laws.

Notwithstanding section 2 of chapter 70 of the General Laws or any other general or special law to the contrary, except for section 12B of chapter 76 and section 89 of chapter 71 of the General Laws, for fiscal year 2008 the total amounts to be distributed and paid to each city and town from item 7061-0008 of section 2 shall be as set forth in the following lists. The specified amounts to be distributed from said item 7061-0008 of said section 2 shall be in full satisfaction of the amounts due under chapter 70 of the General Laws.

For fiscal year 2008, the foundation budget categories for each district shall be calculated in the same manner as in fiscal year 2007; provided, the limited English allotments in the foundation budget shall be increased by $50; and provided further, the low-income allotments in the foundation budget shall be increased by $25.  The target local share shall be calculated using the same methodology used in fiscal year 2007.  Preliminary local contribution shall be the municipality’s fiscal year 2007 minimum required local contribution increased or decreased by the municipal revenue growth factor; provided further, that if a municipality’s preliminary contribution as a percentage of foundation is more than five percentage points lower than the target local share, the preliminary contribution shall be recalculated using the municipality’s revenue growth factor plus one percentage point; provided further, that if a municipality’s preliminary contribution as a percentage of foundation is more than ten percentage points lower than the target local share, the preliminary contribution shall be recalculated using the municipality’s revenue growth factor plus two percentage points.  Required local contributions shall be calculated using the same methodology used in fiscal year 2007; provided, that in any municipality with a preliminary contribution higher than its target local contribution, required local contribution shall be the preliminary local contribution reduced by 25% of the gap between preliminary local contribution and target local contribution.  Required local contribution shall be allocated among the districts to which a municipality belongs in direct proportion to the foundation budgets for the municipality’s pupils at each of those districts.

For fiscal year 2008, the “foundation aid increment” shall be the difference between (a) the positive difference between a district’s foundation budget and its required district contribution and (b) prior year aid.  The “down payment aid increment” shall be 30 per cent of the positive difference between 100 per cent of a district’s target aid share and its prior year chapter 70 aid, minus the foundation aid increment; provided, the target aid share shall be calculated in the same way as in fiscal year 2007 using updated income, equalized valuation and foundation budget data. The minimum target aid share being 17.5 percent.  The “growth aid increment” shall be (a) the product of the target aid percentage multiplied by the difference between the current and prior year foundation budget minus (b) the foundation aid increment and down payment aid increment.  The “minimum aid increment” shall be equal to (a) $50 multiplied by the district’s foundation enrollment minus (b) the sum of the foundation aid increment, down payment aid increment and growth aid increment.  In no case shall the foundation aid increment, down-payment aid increment, growth aid increment, or minimum aid increment be less than zero.

Chapter 70 aid for fiscal year 2008 shall be the sum of prior year aid plus the foundation aid increment plus the down payment aid increment, if any, plus the growth increment, if any, plus the minimum aid increment, if any.  No district shall receive chapter 70 aid in an amount greater than the district’s foundation budget.  If there is a conflict between the language of this section and the distribution listed below, the distribution below shall control.

The department shall not consider health care costs for retired teachers to be part of net school spending for any district in which such costs were not considered part of net school spending in fiscal year 1994.

No payments to cities, towns, or counties maintaining an agricultural school pursuant to this section shall be made after November 30 of the fiscal year by the state treasurer until he receives certification from the commissioner of revenue of the commissioner's acceptance of the prior fiscal year's annual financial reports submitted pursuant to section 43 of chapter 44 of the General Laws. The state treasurer shall make advance payments for some or all of periodic local reimbursement or assistance programs to any city, town, regional school district, or independent agricultural and technical school that demonstrates an emergency cash shortfall, as certified by the commissioner of revenue and approved by the secretary of administration and finance, pursuant to guidelines established by the secretary.